Gifts / Sports & Toys

According to Huacheng Import and Export Data Observation, Jay Foreman, CEO of Basic Fun, a US toy manufacturer, said that about 20 factories it has collaborated with in China have informed employees not to return to work immediately after the Lunar New Year, as US inflation continues to rise and retailers' large inventory in the first half of last year still needs to be digested. The company's main products are Care Bears rainbow teddy bears and Tonka toy cars.

Foreman stated that every factory he asked about had fewer employees this year than last year. However, he predicts that demand in the United States will pick up in the second half of the year.

In the just past Christmas season, poor sales of Christmas toys have dragged down the performance of several major toy listed companies worldwide. According to Huacheng Import and Export Data Observation, in the fourth quarter of 2022, Mattel's net sales amounted to 1.402 billion US dollars, a year-on-year decrease of 22%; The operating revenue was $79 million, a year-on-year decrease of $178 million; Net income was $16 million, a year-on-year decrease of $210 million. Import and export data shows that Hasbro's revenue in the fourth quarter was 1.68 billion US dollars, a year-on-year decrease of 17%. The revenue of the consumer goods department (i.e. toy consumer goods) was about 1 billion US dollars, a year-on-year decrease of 26%, making it the largest decline among the three major business sectors. Due to poor performance, Hasbro even decided to lay off 1000 employees globally.

According to Huacheng Import and Export Data Observation, China's sales of toys, games and sports goods to the United States account for about 6% of the total import volume, with a slight decrease in the proportion of toys.

Asia Pacific consulting firm partner Johan Annell said that almost all essential goods for people's livelihoods have been severely affected, which is a combination of high inventory and declining demand, and the situation for consumer electronics is similar. However, there are also some industries that are relatively good and are still busy shipping to make up for the things that had to be delivered last year.

The United States is China's largest single trading partner, and retail sales in the United States have significantly cooled in recent months. Last year, China's exports to the United States showed almost zero growth, but this year, due to the downturn in the US economy, the outlook is even less optimistic. This has not taken into account factors such as tariffs and tensions between the United States and China.

The Chinese Customs Administration stated in January that Chinese exports are facing pressure from declining external demand and increasing risks of global economic recession.

According to Huacheng Import and Export Data Observation, the high inflation in the United States in 2022 caused serious damage to the American middle class, with 80% of middle class families having to use their savings to make ends meet, and nearly 75% of households being forced to curb non essential expenses.

The United States experienced high inflation in 2022, with inflation rates reaching a 40 year high of 9.1%, which dealt a heavy blow to middle-income households in the United States. A survey released by a financial services company in the United States shows that 82% of middle-class American households have to stop saving or withdraw their previous savings to make up for the difference between high living costs and their income in the last three months of 2022. The middle class in the United States is spending their savings to make a living, "the company said.

In order to cope with inflation, respondents have expressed that they will reduce or stop spending in the coming months. 39% of middle-income families stated that they had already taken such measures in the fourth quarter of 2022 to prepare for 2023. Nearly 75% of households say they are curbing non essential expenses. 47% of households also stated that they are delaying maintenance of their cars or houses.