I would like to start this week with an apology of sorts. In last week’s Blog, I may have given the impression that the biggest challenge facing the toy community in the coming months would be the uncertainty surrounding the US tariff situation, and whether or not refunds would come without an almighty battle. It turns out that this may be the least of our worries over the coming weeks…
In fairness, while my eyes and ears in the toy market are very good, I don’t have that kind of spy network on a global geopolitical level. Admittedly, the signs were there last week: the build up of US forces in the Middle East wasn’t just a show of strength after all.
Nevertheless, with diplomatic negotiations still in progress, it was something of a surprise to wake up last weekend to the news that a major conflict with Iran had been initiated. My thoughts are with all the people across the region who have suddenly found themselves unwittingly caught up in the aftermath – it can’t be easy to carry on about your daily business pretending nothing is happening. From Iran to Israel, from UAE to even the likes of Turkey and Cyprus, innocent bystanders are at risk from the consequences of failure of those negotiations – humanitarian concerns are obviously more important than financial ones at a time like this.
However, the ramifications for the global economy are already becoming apparent. With the Strait of Hormuz being a major conduit for oil supplies to China, suppliers will be keeping a nervous eye on how this will affect the supply chain. Far be it from me to suggest that the shipping companies were on the phones to each other in minutes, and whatever you do, don’t mention the ‘c’ word when talking about them (that’s cartel by the way…clean your mind out).
But of course, the aftershocks won’t just be felt in Asia – if you are a car driver, you will have already felt the effect here in the UK this week. Within hours, our local Tesco garage boldly swung into action, raising its prices twice in one day. A little committee of dandy highwaymen headed up by someone probably called Robin Barr-Stewart obviously decided to follow Churchill’s mantra that no good crisis should go to waste – how terribly patriotic of them. And there was me believing the forecourts’ traditional excuse about not bringing prices down when wholesale prices tumble, because they had apparently bought six months’ worth of supply at higher prices. Where was that stockpiled supply bought at lower prices this week I wonder? Also noticeably, the Texaco garage down the road didn’t raise its prices at all – it’s almost as if there was a choice to act in the consumers’ interest, or their own…
“But what does that have to do with toys” I hear you cry.
Read the rest here.
