The president of the group E.Leclerc warned the French, on Sunday 2 October, against a rise in the price of toys a few weeks before Christmas. On Wednesday 5 October, sector players tried to reassure consumers, highlighting “a contained increase”. For Montpellier economist Benoit Mulkey, this increase was predictable.
Michel-Édouard Leclerc played against the Fouettard Fathers this Sunday, 2 October. The president of the retail brand that bears his name warned the French, “it will cost more to give gifts to their children at Christmas”. After December 25, 2021 marked by a shortage of toys, in the midst of a post-Covid shipping crisis, will prices ruin the holidays of 2022?
A 6% increase in toy prices
On the side of the market research firm The NPD Group, we recognize a complicated situation. “The purchasing power of households is very tight at the end of the yearFrédéric Tutt, an expert on the toy market, said at a press conference on Wednesday 5 October. Our data shows a modest 6% increase in prices in the games and toys market. (…) The French will have to referee, but they will try to protect the spirit of Christmas.“
How can this price increase be explained? “Most of the toys sold in France come from China and Southeast Asia.explains Benoit Mulkey, professor of economics at the University of Montpellier. After Covid, the production lines struggled to restart. Some electronic components are always difficult to find. Add to these skyrocketing shipping costs and ultimately the high fuel and energy prices in France, and you get part of the answer. “
Yes, the price of toys will increase, but so will that of all manufactured products. it’s not a surprise
But the Hérault expert also mitigates the announcements of Michel-Édouard Leclerc. “Yes, the price of toys will rise, but so will that of all manufactured goods. And to a lesser extent than those of energy or food. It is no surprise. INSEE had warned that inflation would spread throughout the world. the economy “.
On Wednesday, the French toy distributors sector promised to limit the impact on domestic wallets. “Despite a sharp and rapid increase in tariffs, distributors have only gradually passed on the price increases.”cheered Philippe Gueydon, president of the Federation of Toy Specialists and CEO of the King Toy brand.
Christmas, a key time for sales
In Montpellier, Bioviva, which has been marketing its educational games since 1996, has followed this trend. “Our prices will not rise until 2023, despite inflation and rising raw material costs.the company told us, which limits transport costs thanks to Made in France and can count on solar panels installed in its production site to cope with the energy crisis. We know the situation of French families. Christmas is a key time for us. So we agree to lower our margins to keep prices affordable. In the end, the increase will be limited to 2 or 3 euros on some games, those that are the most gluttonous of raw materials.