Toy manufacturers have to outbid and outmaneuver the competition to get their goods shipped to stores in time for the holiday season
MGA Entertainment is prioritizing shipments of its top-selling toys, like the Rainbow High ColorThe toy industry in recent years has grown accustomed to weathering an annual crisis that threatens the holiday season. Every year Christmas still arrives, with lots of toys under Christmas trees.
Over the past four years, Zahn said, the industry has survived speed bumps like the trade war, the closing of Toys R Us stores, and the pandemic. “Now we have one that is going to be a little bit harder to roll over,” he said. Some manufacturers, Zahn said, have told The Toy Book that they opted to delay releasing new toys this fall because they couldn’t be sure they could get them shipped.
“At the current rates, our cost per unit just on the freight piece is up five times year-over-year, and is now 50% of our landed cost,” McGill said.
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