Raw materials rising, the most strict control over the order, "price" of the toy industry where to go?

December 29, 2023

The furthest distance in the world is not life and death, but you vigorously reduce the price promotion on Double Eleven, and then issue a paper price hike statement - "The company decided to raise each product by 8% on the original basis from December, and ship in November according to the original price." The notice from a toy factory in Shantou also revealed the reason for the price increase, saying that since October, raw materials soared by 30%, carton by 15%, plastic by 15%, color box by 15%, followed by hardware, transportation, motor, electric board in different degrees of price increases.

The rise in the price of raw materials has a wide impact on the toy industry, taking rubber and plastic, the main material of toys, for example, according to the price monitoring of the business community, in October 2016, the price of commodities rose in the rubber and plastic plate a total of 20 kinds of goods, of which the increase of more than 5% of the total of 13 kinds of goods, accounting for 59.1% of the number of goods monitored in the plate. Among them, the commonly used toy raw materials PS, ABS, PC and PP rose 8.23%, 27.22%, 15.46% and 18.76% respectively.

In addition to the rise in raw materials, the new version of the "Regulations on the Management of over-limit transport vehicles on the road" and the "Special Action Plan for regulating the illegal over-limit and overloading behavior of highway trucks", known as the "most severe over-order", have also brought an increase in logistics costs to the toy industry since the implementation of September 21. It is understood that the revised penalty standard stipulates that each time a vehicle is found overloaded, that is, the vehicle is "more than four penalties" (penalty owners, penalty drivers, penalty freight enterprises, penalty loading enterprises or places), each overload 1 ton maximum fine of 500 yuan, several times higher than the original standard, due to the rise in illegal costs, drivers are afraid to continue ultra-high overload.
In recent years, the profit level of the domestic toy industry has been declining due to the appreciation of the RMB, the rise in employee wages and raw material prices, and the increase in export thresholds. If the price is not increased, the internal digestion, the enterprise can not bear the cost pressure, and the price increase is worried about scaring off dealers and consumers. Dare not raise prices, do not want to raise prices but have to raise prices to cope with rising costs, and some toy manufacturers have no choice but to "be raised" to protect themselves.
In this regard, there are also toy manufacturers are optimistic, that making toys is no longer a simple toy, but to do quality, fun and service. Survival of the fittest, behind the competition will also bring further reshuffle of the toy industry, low added value, poor ability to resist the risk of production enterprises will be eliminated.

In the current domestic market, toys are still non-essential, industry insiders suggest that toy manufacturers should gradually adjust their business ideas, transition from "price war" to "brand war", and seek new profit growth points. Creating independent brands, improving the added value of products, achieving product differentiation, and giving full play to the brand effect are strong guarantees for toy enterprises to improve their competitiveness.

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Author:

Ms. Vivi

E-mail:

bear@ydatoy.com

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+8618273177017