The president of the E.Leclerc group warned the French, Sunday, October 2, against an increase in the price of toys a few weeks before Christmas. This Wednesday, October 5, players in the sector tried to reassure consumers, highlighting “a contained increase”. For the Montpellier economist Benoit Mulkey, this increase was predictable.
Michel-Édouard Leclerc played the Fouettard Fathers this Sunday, October 2. The president of the retail brand that bears his name warned the French, “it will cost more to give gifts to your children at Christmas”. After a December 25, 2021 marked by a shortage of toys, in the midst of a post-Covid maritime transport crisis, will prices spoil the 2022 holidays?
A 6% rise in toy prices
On the side of the company specializing in market research The NPD Group, we recognize a complicated situation. “Household purchasing power is very tight at the end of the yearsaid this Wednesday, October 5 Frédéric Tutt, expert in the toy market, during a press conference. Our figures show a contained increase of 6% in prices on the game and toy market. (…) The French are going to have to arbitrate, but they will endeavor to protect the spirit of Christmas.“
How can this price increase be explained? “The majority of toys sold in France come from China and Southeast Asia.explains Benoit Mulkey, professor of economics at the University of Montpellier. After the Covid, the production lines struggled to restart. Some electronic components are always hard to find. Add to that skyrocketing shipping costs and, ultimately, high fuel and energy prices in France, and you get part of the answer.”
Yes, the price of toys will increase, but like that of all manufactured products. it is not a surprise
But the Hérault expert also tempers the announcements of Michel-Édouard Leclerc. “Yes, the price of toys will increase, but like that of all manufactured products. And to a lesser extent than those of energy or food. This is not a surprise. INSEE had warned that inflation would spread throughout the economy”.
This Wednesday, the French sector of toy distributors promised to limit the impact on household wallets. “Despite a sharp and rapid increase in their charges, the distributors only gradually passed on the price increases”rejoiced Philippe Gueydon, president of the Federation of toy specialists and CEO of the King Toy brand.
Christmas, a key period for sales
In Montpellier, Bioviva, which has been marketing its educational games since 1996, has followed this trend. “Our prices will not increase until 2023, despite inflation and rising raw material costs.told us the company, which limits transport costs thanks to Made in France and can rely on solar panels installed on its production site to deal with the energy crisis. We know the situation of French households. Christmas is a key time for us. So we agree to lower our margins to maintain affordable prices. In the end, the increase will be limited to €2 or €3 on certain games, those which are the most greedy in raw materials.