Richard Gottlieb

“Mass Market” buyers may be looking for products made in Europe and USA for Spring Sets
December 17, 2007

Information I am hearing is leading me to believe that some “Mass Market” retail buyers are actively looking for products that are not made in China for their spring sets.  The question is why and why now.

My analysis is that several issues have come into play:

1. When the industry began being hit with  “Made in China” recalls in the fall most “Mass Market” retailers had products on the way.  There was no way to turn the containers around so everyone played the hand they were dealt.
2. Back in October, no one knew for sure what the impact of the recalls was going to be.  That has changed and retail toy sales this quarter are seemingly soft.  Buyers may be justifiably wondering how much of this had to do with worried consumers walking away from “Made in China” toys.
3. Store managers and department managers may be fielding customer complaints about not being able to find toys that are not made in China.  These are being passed back to management, which may be mandating more products be carried that are not made in China.
4. Buyers may be seeing revenues that they expected to flow to the toy department flowing instead to children’s consumer electronics and clothes.  Most “Mass Market” buyers are evaluated on revenue and profit so they are going to be very sensitive about where their sales are going.  It’s bonus time.
5. Major retail buyers did not have relationships in place with companies not making goods in China.  This meant that there was no quick fix when all of this came down in the fall.  Now, they have had time to look around and find sources.

Bottom line, if you are a company that makes its toys somewhere other than China, you may want to contact that major retailer who has not taken your calls in the past.  They may this time.

Posted by Richard Gottlieb on December 17, 2007 | Comments (0)