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The toy industry is showing a bleak situation, a large number of toys have a backlog

by:Toysmax     2021-05-31

There is a large backlog of toys in the Pearl River Delta region that cannot be sold, and there are shopping malls that are 'priced by catty' in the region. Is the domestic toy industry unable to 'play' behind this phenomenon? The so-called 'sale by catty' promotion activity is not an activity directly participated by traditional toy companies. The model was initiated by a toy factory in Chenghai District, Shantou City in 2012 and has been in use ever since. The person in charge of a number of toy companies said that the company is unlikely to participate in such promotional activities. However, for domestic toy companies this year, domestic and foreign sales are facing greater pressure. The Guangdong Toy Association predicts that in the second half of this year, the overall domestic toy market will not see a 'strong rebound'.

Toys 'selling by the catty' is not scaled up

The relevant person in charge of the Guangdong Toy Association said that according to their understanding, the 'sales by catty' sales model It has appeared a few years ago and is an attractive gimmick for businesses. There is no scale effect in the industry, and it is not representative. 'We did not study this in depth.'

In fact, this 'selling by catty' sales model is not directly participated by traditional toy factories. Yes, its dominant players are mainly companies called 'stock toy factories'.

Mr. Wang, a related staff member of a toy factory in Chenghai, said that they have used this 'selling by catty' model for several years. The toy products 'sold by the catty' mainly include remote-controlled cars, electric toys, and Barbie dolls. '90% of the company's inventory is priced by the catty, and higher-end toys such as quadcopters and remote-controlled airplanes are priced by the piece.'

According to Mr. Wang and other staff of the company, the company’s source of goods mainly comes from exhibition hall toy products, factory tailings, factory destruction orders, etc. 'The so-called destruction orders, for example, a customer placed 1,000 orders with the factory. Or hundreds of orders, and then they cancel the order, these products will be processed on our side. The exhibition hall will have new products, and the ones that have been withdrawn from the previous few months will also be placed in ours. There are also tail goods, and the factory produces surplus Products also need to be dealt with.'

For this 'price by catty' model, Mr. Wang said that traditional factories will not do it. If they do, 'they will vomit blood.'

The person in charge of another inventory toy factory in Chenghai said that among the company’s sources, well-known toy brands have relatively few sources. The company’s self-produced toys are generally manufactured under export orders, but the recycled toy disposal products are generally sold domestically. He said frankly that the company's toy sources are refurbished and brand new, and refurbishment means changing the packaging. In terms of product quality, these sourced products may fade.

According to Mr. Wu, in Chenghai, there are probably more than 100 stock toy manufacturers of this kind. 'We rarely encounter traditional manufacturers who do this (price by catty).'

'There is no such situation for the time being, we are mainly engaged in the export market of high-quality toys.' The relevant person in charge of Tianheng Co., Ltd., a company listed on the New Third Board, told reporters.

Ms. Yu, the relevant person in charge of a well-known local toy brand manufacturer in Chenghai, said, 'This is an isolated phenomenon. Our factory did not receive this information.'

Domestic and foreign sales are under pressure< /p>

Although the 'sale by catty' model has little to do with the overall situation of the toy industry. But for most domestic toy manufacturers, domestic and overseas sales of toys are under pressure this year.

“The sales situation in Chenghai as a whole this year is not very good. This is true.” said Mr. Zhu, a staff member of the New Third Board’s Jiada Early Education Office of the Board of Directors. “It’s just that there are fewer orders. In the past, it was opened first. After the products are manufactured, customers come to purchase. For example, some exhibitions will have several popular products every year. But this year, there are fewer foreign merchants to see the exhibition. The past two years have been difficult, and domestic and foreign sales are relatively weak. '

Mr. Song further stated that the company’s export business declined slightly last year, which was related to the national economic situation, but also to the pressure brought by labor costs and exchange rates. Many foreign companies transferred their orders to overseas production, or Purchase abroad.

'Life is not easy. On the one hand, we maintain the status quo, and on the other hand, we hurriedly seek the road of transformation. The direction of transformation has been established, and the relevant fixed increase is also being done. After the funds are in place, the company will finally move forward in a new direction. , Transforming to the content of early education.' Mr. Zhu said.

For the toy market in the second half of the year, industry insiders believe that although there are several peak sales seasons, the overall toy market will not see a “strong rebound” due to the global economic downturn. Maintain a steady trend of 'warm swallowing'.

It is understood that in the first half of this year, global toy food demand maintained its momentum. From January to March, national toy exports reached US$4.777 billion, a year-on-year increase of 17.61%.

However, the Guangdong Toy Association believes that, on the other hand, the domestic market is relatively flat, and it will take time for the second child to fully open the policy dividend.

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