Importers reduced their purchases abroad, especially from China. The product offering is not the same as previous years.
Small Friction Cars and Inexpensive Dolls These are two of the toys that will be missing from the hangers of some toy stores this December, importers say. This is due to the fact that the toy industry is dealing with the effects of the rising cost of shipping freight and the shortage of containers that has impacted the arrival of merchandise.
With the delay in imports, some businesses reduced their offer by up to 50% compared to previous years. Importer Manrique was one of them. Alex Manrique, a business manager, explained that this year they stopped bringing small cars with friction and dolls which were marketed at $ 0.50 and $ 1. “It was not possible to bring this type of toys because of the volume they occupy,” he explained.
The spokesperson for the importer explained that before toys valued at $ 5,000, added to about $ 2,000 of the cost of ocean freight; now it is almost impossible to afford that same container because the transportation rate reaches $ 10,000. For this reason, the importer went from importing four containers of toys to one this year.
According to data from maritime portal DewryUntil December 2, moving a 40-foot container was priced at $ 9,050. A high value if one takes into consideration that in December 2019 this value was around $ 2,000.
Roberto Bigalli, manager of Almacenes Estuardo Sánchez, explained that because the cost to import has reached exorbitant levels, due to the crisis of the Marine transport, the supply of toys is less than 2019 and 2018; but a little better than the one that was exhibited in 2020.
In the specific case of the chain of stores, the licensing toys as action figures they will not arrive in time for Christmas. “There are items that are arriving and will be marketed at Christmas, but there are others that will arrive in the coming weeks and it will be difficult to clear customs and be available this month,” he said. Bigalli, who assured that despite the drawbacks, nationwide stores have a good stock of products to meet the demand of the season.
The Guayaquil Chamber of Commerce (CCG) He explained that given the logistics outlook in international trade, most importers took precautions not to be out of supply. Some chose to import from Panama instead of China, the union explained. Others, on the other hand, made higher volume purchases months ago to have enough product in the warehouse for the last months of the year.
That was the case with Pica. María Laura Uvidia, Marketing Manager of the firm, explained that this year processes and purchase requests were advanced to suppliers to avoid delays in the arrival of supplies that affect production.
The Pica spokeswoman stated that, as an additional measure in 2021, the renewal of the product portfolio was modest. For example, he detailed, that it was observed in detail if the accessories that were going to be placed in certain toys would be available and if they would arrive in time so as not to delay the production stage.
In this context of increasing costs, the toys business segment points out that there is a price adjustment for the final consumer in the order of 5% to 20% more compared to last year, especially in those products that suffered a greater hit due to freight mobilization costs. However, it has been pointed out that the increase will not be exaggerated, since competition between businesses is high and there is a great expectation of the entire sector to grow in sales this year, such as recovery period.
In fact, Pica has its expectations placed on the second half of December to raise its billing. And Estuardo Sánchez indicated that it is expected to continue on the growth path that they have maintained since the beginning of the month.
The projections of the toy segment
The Guayaquil Chamber of Commerce qualifies that, despite logistical problems, the sale of toys in 2021 will be higher than previous years.
Miguel Angel Gonzalez, president of the union, said that in December estimates suggest that the turnover of toys will increase by 4% compared to 2020. “Compared to 2019, on the other hand, it would be an increase of 19%,” he said.
González recalled that, historically, total sales of the commercial sector, including toys, in December they grow around 40% compared to the average of the other months of the year. So it is expected that, despite the pandemic and logistical problems, this year will not be the exception.
Jorge Muñoz, spokesman for the toys division of Aunt Warehouse, projects that the sales goal of last year will be improved and surpassed, considering that currently there is evidence of the presence of more customers in physical stores.
The chain of stores pointed out that, in addition to the visits in person, there is the facility for customers to purchase products through the via digital.
The origin of imports
The toys, for the most part, come from China. According to data from the Quito Chamber of Commerce (CCQ), from the Asian giant, in the first nine months of the year $ 33 million were imported in tricycles, skateboards, puzzles, electric trains, among others. About $ 6 million more than the same period of 2020. (I)
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