90 TOYTALK
Wow. Toy prices as a solution to social
inequality? That’s deep, man.
OBSERVATIONS OF A TOY INDUSTRY SURVIVOR Jon Salisbury
As the first shots are fired in the annual Christmas price battle at retail, toys are again proving to be a valuable seasonal currency. But at what cost for the suppliers...?
IN THE LAST ISSUE, we reported the encouraging words of major industry players who were forecasting that the outlook for toy sales this Christmas in the UK was positive. Then, there was a similar rallying cry from manufacturers in the US calling for people to have confidence.
Is the toy industry so darn resilient that it can weather the slings and arrows of outrageous economic misfortune? Is the happiness of our children ring-fenced at Christmas despite the lingering effects of recession and the threat of a double dip? Is there an impenetrable force field surrounding us that nothing can breech? Of course there isn’t and still I prefer to put almost evangelical faith in the power of a season’s hottest items. The kind of toys that everyone is talking about and that other industries look on at, drooling with envy and wishing they could emulate the frenzied demand for.
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People moan about price wars and the limited availability of key lines when demand soars but I’m sure we’d all much rather be a part of the toy business than be selling, say, grommets, for a living.
Just look at the mouth-watering line-up.
The likes of Moshi Monsters, ThunderCats, LeadPad Explorer, Fijit, Elmo and Lego Ninjago are just some of the exciting new toys that will be grabbing the headlines this Christmas. The toy industry’s ability to re-invent itself is just one of its many attributes. That toys take centre stage in the annual price war at Christmas demonstrates just how valuable they are as a seasonal currency. As Asda’s aptly named Steph Strike said, getting her firm’s retaliation in first in this year’s price war: “Struggling for money as a parent is not a game. No one should pay over the odds providing for their children this Christmas,” as she unveiled a £10 million Big
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Toy Rollback. Wow. Toy prices as a solution to social inequality. That’s deep, man. It won’t end there either. Expect further volleys in price warfare as the seasonal conflict escalates. ThunderCats is already a sell out to the trade and stock on shelf will eventually be pretty threadbare and is likely be the subject of this year’s (unwarranted) criticism of the industry’s incompetence. Retail Week recently said of price wars that it doesn’t always make good business sense to continually hammer suppliers. “Will the suppliers always be keen to offer a great service or come to a retailer’s aid in a supply chain crisis if it’s a one-way relationship? Will they continue to innovate if they've got nothing left in the pot to innovate with?” it asked.
So, with the season of goodwill just around the corner, perhaps you should spare a thought for your poor suppliers...
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