30 Aug 2021
Toymakers to Increase Toy Prices This Season
The Index Today
Due to a supply chain crisis, top toymakers in the U.S will be limiting their stocks this holiday season. This could lead to inflated prices and shortages as the supply may not be enough.
Isaac Larian, the MGA entertainment CEO, expressed his concern over supply chain issues and freight companies increasing their prices. He stated, “The container that cost $3,200 last year is now $22,000. The installation of raw materials and labor has gone up exponentially. We’ve seen a 23% increase in the cost of products in China without the logistics. That is going to translate to higher prices with retail.”
Alongside freight issues, Larian also highlighted the problem of truck shortages which prevent products from being transported into his warehouses and shops.
Hasbro, Mattel, and Lego have secured shipping containers to meet the demand in the holiday season, however, prices of toys may go up due to increased shipping costs. Consumers may see an increase of 5% to 10%.
The toy industry is among the few examples of how larger corporations seem to have an advantage over small-sized firms. Bigger companies tend to have more money to help finance economic shortages whereas smaller firms don’t.
During the pandemic, toy sales went up as more parents looked for toys to keep their kids entertained at home. The stimulus also helped give people enough resources to afford toys last year. This year could be similar to a sales boom, but with higher-priced toys.