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Storage containers are scarce, toymakers are focused on small toys – New Orleans, Louisiana

New Orleans, Louisiana 2021-10-16 18:14:00 –

Jay Forman, CEO of toy maker Basic Fan, was detained during the summer. The New Year’s shopping rush was just around the corner, but Foreman was having a hard time booking shipping containers to carry company toys, including Tonka trucks. , Care Bears and Cutitos. And when he found some, the cost was exorbitant. Basic Fun, which is usually based in Boca Raton, Florida, can export everything a customer orders from a factory in China. “It’s automatic,” Foreman said. The company can “set it and forget it”. But this year is not the case. It’s not a year when 20-foot and 40-foot shipping containers have become scarce and more expensive to deliver goods from overseas factories to US ports. According to Maritime Research Consultant Drewley, the spot rate for booking a 40-foot container from Shanghai to Los Angeles reached $ 10,229 in the first week of August, an increase of 238% over the same period last year, so Foreman decided. I had to give it. About toys that basic fans focus on sending stores on holidays. And since it had to be completed by September, the goods arrived in time. He found a simple answer to the complex problem of small, fluffy toys. About 85% of the toys sold in the United States are made in China. Toy Association, an industry group. Due to the shortage of containers, limited freight space for ocean shipping, and rising costs, toy makers make many trade-offs for the most economically reasonable products to ship this holiday. Have been forced. Stores and Analysts: Export additional small units and withdraw large size units. “Companies need to think about how to utilize the space of each cube in the container,” said David Garfield, Head of Consumer Product Practices for Consulting. Solid AlixPartners. He said the toy maker modified the packaging to optimize space and increase the number of products per container. In some cases, it means reducing the actual package size. You may also need to limit the additional accessories in the box to make the package lighter. BasicFun can hold $ 150,000 worth of Mash M (a soft, squeaky water-filled merchandise with characters such as Spider-Man, Disney Princess, and Harry Potter) in a container. Foreman is a small stuffed fur wrapped in a $ 100,000 worth of cutitos, a burrito-like blanket. , “The package is the size of a golf ball.” On the contrary, Basic Fun can only load a $ 40,000 worth of Tonka truck and a $ 80,000 worth of Care Bears in a container. As a result, Basic Fun limited the amount of Tonka Trucks and Care Bear animals shipped, rather than raising prices to offset the high costs. Other toy makers have made similar decisions. Yogibo, which sells toys, upholstery and bedding, has decided to prioritize shipping small items such as Squeezibo, gel fidget balls and Mates. Plush toys — Instead of blankets and pillows, “to occupy much less space and provide higher value with the same amount of volume,” said CEO Eyal Levy. Equivalent to sales, 15,000 mate is equivalent to $ 400,000. Based in Nashua, New Hampshire and selling at its retail stores, Amazon and specialty retailers, the company has decided to focus on shipping these small items in the middle of the month. -In September, after struggling to procure containers, “if we noticed that the containers were late every week, we started the prioritization process,” Levy said. “I was running out of time.” This year, toy maker WowWee said with My Squishy Little Dumplings, a bite-sized dumpling that makes pop sounds that kids can squeeze and throw, and 30 virtual jars. I sent another Got2 Glow Fairy Finder. Fairies to retailers such as Amazon, Walmart and Target. “Cargo and containers are valuable, so we prioritize fast and small items,” said Andrew Yanovsky, Head of Marketing and Operations in Hong Kong. Base company. He estimates that $ 245,000 worth of dumplings can be placed in a 40-foot container and $ 535,000 worth of Got2Glow jars can be shipped. The company has withdrawn the shipment of Pop2Play, a pop-up playset slide. “Only $ 61,000 worth of slides fit in a container,” Yanovsky said. “This is a great toy that sells well, but the problem is only a few thousand.” “If the margins are low and the footprint is large, such items are pushed aside.” The manufacturer’s decision to prioritize small toys has penetrated into the holiday inventory available at some toy stores. increase. Learning owner Rick Derr, Express Toys of Lake Zurich, Illinois, said in the spring that he began to notice a larger supply of smaller and lighter merchandise. He uses another supplier to fill the gap in big items such as dollhouses, playsets and mazes. “If you sell them enough, you can make up for losing that we don’t have larger items.” Specifically, Derr is a smaller fidget toy, Silicone Pop. It! I expect to be able to sell. Toys, small art and craft kits, puzzles, card games. “These will be in much better shape this year,” he said. What’s missing in his store this holiday: “Bigger Items”.

Jay Forman, CEO of toy maker Basic Fan, was detained during the summer.

The year-end and New Year shopping rush was just around the corner, but Foreman struggled to book shipping containers to carry toys from companies such as Tonka Trucks, Care Bears, and Cutitos. And when he found some, the cost was exorbitant.

Basic Fun, based in Boca Raton, Florida, can typically export everything a customer orders from a factory in China. “It’s automatic,” Foreman said. Companies can “set and forget”.

But this year is not the case. It’s not a year when 20-foot and 40-foot shipping containers have become scarce and more expensive to deliver goods from overseas factories to US ports. According to Maritime Research Consultant Drewry, spot rates for reservations for 40-foot containers from Shanghai to Los Angeles reached $ 10,229 in the first week of August, an increase of 238% over the same period last year.

Therefore, Foreman had to decide on a toy that BasicFun would focus on sending stores on holidays. And he had to make it by September, so the goods arrived in time.

He found a simple answer to a complex problem: a small, fluffy toy.

According to the Toy Association, an industry group, about 85% of toys sold in the United States are made in China. Due to under-transportation of containers, limited cargo space on vessels, and soaring costs, toy makers had to make many trade-offs for the most economically meaningful products to ship this holiday.

According to toy makers, stores and analysts, one solution to container constraints is to export additional smaller units and withdraw larger ones.

David Garfield, Head of Consumer Product Practices at consulting firm AlixPartners, said: He said the toy maker modified the packaging to optimize space and increase the number of products per container. In some cases, it means reducing the actual package size. You may also need to limit the additional accessories in the box to keep the package lightweight.

Basic Fun puts $ 150,000 worth of Mash M (goods filled with soft squeeze water featuring characters such as Spider-Man, Disney Princess, and Harry Potter) in a container and puts a cute stuffed fur worth $ 100,000. You can wrap it in something like a brito. blanket. “

It’s a simple case of how much sales will fit in a container when it’s hard to come by, “said Foreman, adding that for these little toys,” the package is the size of a golf ball. “

Basic Fun, on the other hand, can only load $ 40,000 worth of Tonka trucks and $ 80,000 worth of Care Bears into containers. As a result, Basic Fun limited the amount of Tonka trucks and Care Bears animals shipped, rather than raising prices to offset rising costs.

“We’ll be selling trucks again next year, so we don’t have to reduce the number of trucks we sell and raise prices exponentially,” he said.

Fidget balls and small animals are prioritized

Other toy makers have made similar decisions.

Yogibo, which sells toys, upholstery and bedding, has decided to prioritize shipping small items such as Squeezibo, gelfidget balls and Mates (small and cute stuffed animals) instead of blankets and pillows. Higher value with the same amount of volume, “said CEO Eyal Levy.

Yogibo can hold 200,000 Squeezibo units ($ 1.6 million worth of sales) and 15,000 Mates ($ 400,000 worth) in a 40-foot container. However, only 2,500 blankets, which are worth $ 200,000 in sales, fit in the container.

Based in Nashua, New Hampshire and selling at its retailer Amazon and specialty retailers, the company decided to focus on shipping these small items in mid-September after struggling to procure containers. Decided.

“When we noticed that the containers were late every week, we started the prioritization process,” Levy said. “I was running out of time.”

This year, toy maker WowWee has launched My Squishy Little Dumplings (a bite-sized dumpling that makes pop sounds that kids can squeeze and throw) and Got2 Glow Fairy Finder, a jar of 30 virtual fairies on Amazon and Walmart. I sent it to a retailer such as. And the target.

Andrew Yanovsky, head of marketing and operations for the Hong Kong-based company, said: He estimates that $ 245,000 worth of dumplings can be placed in a 40-foot container and $ 535,000 worth of Got2Glow jars can be shipped.

The company has withdrawn the shipment of Pop2Play, a pop-up playset slide. According to Yanovsky, only $ 61,000 worth of slides will fit in the container.

“It’s a great toy and it sells well, but the problem is just a few thousand fits,” he said. “If the margins are low and the footprint is large, such items will be pushed aside.”

The manufacturer’s decision to prioritize small toys has permeated the holiday inventory available at some toy stores.

Rick Derr, owner of Learning Express Toys in Lake Zurich, Illinois, said in the spring he began to notice a larger supply of smaller and lighter items. He uses alternative suppliers to fill the gap in larger items such as dollhouses, playsets and mazes.

“We’re going to pivot to smaller items,” he said. “If you sell them enough, you can make up for it. [sales] Specifically, Derr is a smaller fidget toy, Silicon Pop It! We look forward to selling toys, small craft kits, puzzles and card games.

“These will be in much better shape this year,” he said. What’s missing in his store this holiday: “Bigger Items”.

Storage containers are scarce, toymakers are focused on small toys Source link Storage containers are scarce, toymakers are focused on small toys

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