United States retailers who rely on production from China have revealed that they have considered sourcing within their country. During the New York City industry trade show, toy sellers claimed that domestic suppliers have boost industry demand for toy products.
According to Channel Craft vice president Jon Hogue, the toy sellers in the US had the best Toy Fair in a decade. He claimed that the Javits Center trade show last February showed hints of recovering after US toymakers experienced declines due to China's slowing economy.
Hogue added that about one-third of Channel Craft sales at the Toy Fair was new customers such as FYE, a store chain that provides customers with entertainment-related merchandise.
The report claimed that about 85 percent of the toys made by US toy producers come from China and that since the supply chain problems occurred this year, retailers have opted for domestic production. The said business strategy benefited most retailers such as Walmart, Target, and Amazon.
Crazy Aaron also recorded an increase in demand from retailers that have experienced the adverse effects of Chinese supply chains such as closed factories. Founder of the company Aaron Muderick claimed that US toy companies have relied heavily on China to produce its products.
He added that major buyers of his brand have decided to ship their purchases directly. He also revealed that one retailer wanted to purchase in bulk the new scented play dough line of the brand named Land of Dough in the trade show.
American Plastic Toys also acquired purchases from Walmart as its biggest customer during the event. The said purchase was also reported to be a contingency plan for Walmart in the event that supply chain disruptions in China would persist.
According to John Gessert of American Plastic Toys, its existing customers have already placed bulk orders for spring, an unusual purchase volume compared to when China supplied for the US toy retailers in the past.
Gessert added that this indicated that US toy retailers are staying close to home for the supply of their products. The report also indicated that toymakers also stocked up on products ahead of the tariff implications on Chinese-made goods this year.
The vice president of sales and marketing at Hog Wild Toys Josh Loerzel also added that his company has more made-in-China toys stacked in its warehouse this year compared to previous timelines.
The report also indicated that since the Toy Fair in New York, the Chinese public health crisis has roiled stock markets on fears of the issue transforming into a global pandemic. Nevertheless, production in China is expected to recover by April this year.
According to the New York Times, American toymakers such as Mattel are focusing their efforts on creating Baby Yodas in the US market this year. The plan was discussed during the Toy Fair and are pushing animatronic designs for the toy. The said toymakers would also resort to domestic supply for the production of its planned products.
