Gifts / Sports & Toys

According to foreign media reports, the demand in the United States market has cooled, and some Chinese factories have asked workers not to return to work immediately after the Lunar New Year because of the disappearance or reduction of orders.

Jay Foreman, CEO of Basic Fun, an American toy manufacturer, said that about 20 factories it has cooperated with in China have told employees not to return to work immediately after the Lunar New Year, because inflation in the United States continues to rise, and the huge inventory of retailers in the first half of last year has yet to be digested. The company's main products are Care Bears Rainbow Toy Bear and T Toy Car. Huacheng Import and Export Data Observation Report.

Foreman said that every factory he asked said that the number of people employed this year was less than last year. However, he predicted that the demand of the United States would return in the second half of the year.

T toy car

In last Christmas season, the poor sales of Christmas toys dragged down the performance of several major toy listed companies in the world. According to Huacheng Import and Export Data Observation, Mattel's net sales in the fourth quarter of 2022 were 1.402 billion US dollars, down 22% year on year; The operating revenue was 79 million US dollars, a year-on-year decrease of 178 million US dollars; Net income was US $16 million, a year-on-year decrease of US $210 million. Hasbro's revenue in the fourth quarter was $1.68 billion, down 17% year on year. The revenue of consumer goods department (i.e. toy consumer goods) was about $1 billion, down 26% year on year, which was the largest drop among the three business sectors. Because of its poor performance, Hasbro even decided to lay off 1000 people worldwide. (Click to learn)

According to the data of the General Administration of Customs of China provided by Wind Information, toys, games and sporting goods sold by China to the United States account for about 6% of the total imports, with the proportion of toys falling slightly.

Johan Annell, partner of Asia Pacific consulting company, said that almost all the necessities for people's livelihood have been severely hit, which is the combined result of high inventory and declining demand, and the situation of consumer electronics is similar. However, there are also some industries that are relatively good and are still busy shipping goods to make up for the things that must be delivered last year, Huacheng Import and Export Data Observation reported.

The United States is China's largest single trading partner, while retail sales in the United States have significantly cooled in recent months. China's exports to the United States grew almost zero last year. This year, because of the downturn in the United States, the outlook is even less optimistic. This has not taken into account such factors as tariffs and tensions between the United States and China.

The China Customs Administration said in January that China's exports are facing pressure from falling external demand and rising risks of global economic recession.

According to Huacheng Import and Export Data Observation, the high inflation in the United States in 2022 has caused serious damage to the middle class in the United States. 80% of middle class families have to use their savings to live, and nearly 75% of families have been forced to curb unnecessary spending.

The United States experienced high inflation in 2022, and the inflation rate was once as high as 9.1%, hitting a new high in 40 years, which hit the middle-income families in the United States. A survey released by a financial service company in the United States recently showed that 82% of middle-class American families had to stop saving or take out their previous savings to make up for the difference between the high cost of living and their income in the last three months of 2022. "The American middle class is spending their savings to make a living," the company said.

In order to cope with inflation, respondents said that they would reduce or stop spending in the next few months. 39% of middle-income families said they had taken such measures in the fourth quarter of 2022 to prepare for 2023. Nearly 75% of households said they were curbing non-essential spending. Another 47% of households said that they were delaying the maintenance of their cars or houses, Huacheng Import and Export Data Observation reported.