Toys can be very expensive for the rise of raw materials, maritime transport and electricity

"The variable cost of the toy sector has risen between 20 and 40% dueto 20 minutes José Antonio Pastor, president of the Spanish Association of Toys Manufacturers (AEFJ).

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With these perspectives, it is obvious that the companies in the sector will impact the increase in costs to customers, although the proportion of the increase in toys "will depend on the strategy of each company," says Pastor.

"Some companies may choose to try to change raw materials for more economical ones, to renegotiate with suppliers or to relocate production in order to try to save costs and not have to make the products more expensive," he explains.

Fernando Pérez, director of the NPD market analysis company, says that "there will be an increase in brutal costs", but argues that "companies will not be able to impact that rise on the final price because they would not sell the toys".

In his opinion, most will attempt costs renegotiating with suppliers and subtracting part of their profit margin."For all this, it is likely that this crisis of brutal cost rise favors large toys manufacturers in front of the little ones.".

The paradox: more billing and export...But you get into losses

The good thing, the president of the AEFJ laments, "is that the production costs have risen a lot" so the toy sector suffers the paradox of "registering an increase in demand in Spain, with 4%more billingUntil September, to increase exports by 25% compared to 2020, to glimpse an era of economic recovery, but at the same time make numbers and see that many companies enter losses due to the strong rise in production costs ".

Pastor expects the toy sector to invoice below 2019, before the Coronavirus, "but we could stay close to the figure of that year".

Encrying of plastics, iron, cardboard...

Thus, according to AEFJ sources, some plastics such as polymers have folded their price (100%), PVC (vinyl plastic) has increased 35%, polyesters 90%, polyamides 45%,Iron for tricycles or bicycles by 30% and cardboard 25%.

The risk of delays and toys exhaustion

José Antonio Pastor admits that "problems" are being generated due to "delays" of up to 9 weeks in the arrival of toys for maritime transport, when "before summer containers took 4 or 5 weeks to reach Spain".

In this regard, he points out that these problems have been caused by the fact that the vast majority of manufacturers were supplied at the beginning of 2021 to "cover their backs" in the face of "possible problems linked to pandemic".That decision "unfortunately," Pastor laments, "has now contributed to provoke a increase in the price of many raw materials".

The president of the employer's employers warns that if there is a delay of more than two months to Christmas weeks "it logically means that this toy could no longer be marketed".Regarding the exhaustion of products, it indicates that "that risk always exists" because "the market moves by fashion and 70% of sales occur in the Christmas period".

Upper categories: vehicles without motor, stuffed animals and action figures

Fernando Pérez, director of NPD Spain, market analysis company specialized in toys, explains that most categories have advanced in billing during the first nine months of this year 2021, especially vehicles without motor, stuffed animals, figures ofAction and dolls mannequin.

"The sale of Hot Wheels type minivehicles are working very well, there is a boom.They grow by 37% and it is because they have become fashionable, "Pérez emphasizes.In addition, he adds that "the stuffed animals are also growing, especially those of The Mandalorian".

As for the dolls, "the so-called doll dolls, Barbie type are working well, while the mini-women and baby dolls are falling".That is, those that would correspond to the Pinypon and the Nenuco of a lifetime.

Models and puzzles are going to less after the confinement boom

“The categories in negative correspond mainly to those that, thanks to the pandemic, registered very good behavior in 2020: the products linked to time consumption in the home, such as the models or the adult puzzles, which descend once theleisure away from home, ”explains Fernando Pérez.

Another of the categories that triumphed in 2020, especially during the months of confinement, were the board games, according to José Antonio Pastor."The board games were the star last year, especially the intergenerational ones, those who could play parents and children," he says.

Good expectations for Christmas for family reunions

The perspectives for the Christmas season are positive, according to the NPD analyst, due to "the contribution of sales that can lead to the progressive recovery of customs prior to the emergence of COVID-19".

“Predictably, the control of the pandemic thanks to the advance of the vaccination plan, together with the absence of large restrictions, will allow the return to family encounters, which favor the delivery of gifts.Similarly, the reopening of film rooms will boost the premiere of films, with the consequent effect on the sale of licensed product, ”says Fernando Pérez.

Not surprisingly, until September "the licensed market grew double digit (25%)" driven by properties such as The Mandalorian, Harry Potter or Mario Bros, while the unleashed market was practically flat (1.5%).In total, at the end of August the market grew by 2.7%, according to Fernando Pérez.

José Antonio Pastor (AEFJ) also predicts a good behavior in sales of "the dolls" and the so -called "nostalgic toys, such as the peon, the commba or the bucket of Rubik".In addition, it predicts a success of the toys "that combine digital with the physical, the child now when he plays wants to play but also participate and customize his toys".

As for board games, the NPD director emphasizes that they will work worse than last year, especially adults, when they had a spectacular boom.However, children's board games will resist.