Go East
As soon as the New Year arrives, a large number of toy suppliers and major buyers will once again be heading off to the Far East. John Baulch reports...
T
he January Hong Kong trip has traditionally been a firm fixture on the calendar for those in the global toy trade with a significant interest in FOB business – both from a buying and selling
perspective. In the main, buyers traditionally use this period to finalise their Autumn/Winter FOB programmes. However, according to some suppliers we spoke to, the calendar appears to be shifting ever-so-slightly, especially for certain UK buyers. Some supermarket buyers, amongst others, will have visited the Far East before Christmas, whilst Argos has opened a new buying office in Shanghai, which is likely to impact on its approach to Far Eastern buying. IMC’s Terry Crew commented: “I think we will see less UK buyers attending in January. I do not believe it will be too significant this year, but I am sure there will be a knock-on effect. We tend to miss out on the key supermarket buyers, who generally just visit China, with the odd Hong Kong appointment thrown in. If the current financial climate continues, I have a feeling that in the next five years there will be a major change in the January buying trip, with more companies questioning the costs and whether more FOB business could
46 Toyworld
be conducted in the UK, and by maintaining China factory visits.”
Another supplier admitted: “The appointment diary for UK customers is a little disappointing. This is in real contrast to France, Benelux and Scandinavia where the appointment schedule is well up on last year, but typically they are all for the following weeks after the UK, so a long period in Hong Kong is on the cards again.” But to put this in context, the majority of the suppliers I spoke to admitted to having full diaries. MV’s Phil Ratcliffe typified much of the feedback I received: “It would appear that less people are going out, but we’ve got enough to keep us busy. There are certain customers who want to wrap everything up in terms of ranging and orders in Hong Kong, so it is still very relevant. It is also a good opportunity to discuss products and ranges which are more bespoke to individual retailers.” Dragon-i’s Dave Cave also pointed out that:
“October was the busiest I have ever seen it, we had almost 100 appointments in two weeks, compared with 70 last year. I also have more appointments confirmed for January than I did last year.” There have been suggestions circulating in
the trade that some buyers could potentially be allocating a smaller percentage of their budget
to FOB and spending more on domestic lines in 2013. Predictably, the suppliers I spoke to were split on whether or not this is likely to be the case. Toy State’s Robert Mann commented: “Our
experience is that the trade is actually spending more on FOB and a number are making extra commitment to Own Brand. The big problem is not the amount they are spending but the dates they decide to make their selection trips. I miss the days when all the buyers came out in the same month!” Phil Ratcliffe concurred: “I don’t think it is a case of less FOB, as opposed to more flexible FOB i.e. mixed containers, smaller MOQ’s, more often,” whilst Martin Grossman’s assessment was short and sweet: “We have seen a move towards more FOB than domestic.” Inspiration Works’ David Martin even went so far as to suggest: “That’s news to me - maybe some of your domestic supplier contacts have some stock to shift?” However, Terry Crew did admit: “We have seen a slight movement away from FOB to domestic trading, particularly on new lines and I see this continuing, as more companies look to reduce their own risk. Lines that are proven best sellers still tend to be in demand for FOB programmes; however I think you only have to look at just-in-time trading to see the problems
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