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Latest News in Toys & Baby Products Industry

 

Is the epidemic situation accelerating the migration of US industrial chains out of China? Over 70% of companies have no plans

A questionnaire survey conducted by the American Chamber of Commerce in China, the American Chamber of Commerce in Shanghai and PwC China showed that more than 70% of the companies surveyed said they would not relocate their production / supply chain or procurement to other regions due to the impact of the epidemic; The number of companies planning to relocating purchases to other regions accounted for 24%, which was twice (12%) of those with plans of relocating production to other regions.

 "Different from some international viewpoints, our data based on local surveys in China shows that most member companies surveyed will not leave the Chinese market." Alan Beebe, president of the American Chamber of Commerce in China, said at a press conference on April 17. In the longer term, 40% of the companies surveyed said that the company's long-term (three to five-year) supply chain planning in China will not change due to the COVID-19 epidemic, but 52% of companies believe it is too early to make predictions. Ker Gibbs, president of the American Chamber of Commerce in Shanghai, said, "100% of companies are considering supply chain risk management and more decentralization than entire relocation." 

 

In March, the economic margin improved. How much will it pick up in the second quarter?

Affected by the impact of the COVID-19 pandemic, China ’s GDP fell by 6.8% year-on-year in the first quarter of 2020. However, with the advancement of resumption of production and production, there was a marginal improvement in the economy in March. Production side: In March, the industrial added value rebounded unexpectedly year-on-year, and the decline narrowed sharply to 1.1%, which was better than the year-on-year decline of 13.5% from January to February. Demand side: The troika is also picking up: the total retail sales of consumer goods in the month fell by 15.8% year-on-year, the decline narrowed by 4.7 percentage points; the year-on-year growth rate of fixed asset investment in January-March rebounded from -24.5% in January-February -16.1%, in which the growth rate of infrastructure investment rebounded by 10.6 percentage points; the previously announced export data, driven by the successive delivery of backlogs of delayed export orders, the decline was lower than expected narrowing to 6.6%.

 

Consumer industry: omni-channel strategy is the way to conquer the epidemic

UBS Evidence Lab conducted the second phase of the “Feel the Pulse of Consumption” questionnaire survey from April 1st to 6th. Although there are fewer unemployed people among the interviewees, 54% of the respondents said that their income has declined since the outbreak. Affected by this, even after the quanrantine was lifted, more than 60% of the respondents significantly reduced their offline consumption compared to before the outbreak. Most respondents' online consumption is increasing. 38% of respondents in early April indicated that they increased their online shopping expenditure and about 75% of the respondents indicated that they would at least maintain the current online shopping frequency in the future. The report believes that investors will increasingly focus on consumer companies with omnichannel capabilities, which enable them to adapt to changing consumer behavior. Given that the industry leaders have stronger balance sheets and stronger supply chain management capabilities, industry consolidation is expected to accelerate.

 

Lord and Taylor Is the Latest Retailer to Reportedly Consider Bankruptcy

Department store Lord & Taylor is reportedly the latest retailer to consider filing for bankruptcy amid widespread store closures from the coronavirus crisis.

Reuters reported late Monday that the department store, which was purchased by fashion startup Le Tote last year, was considering bankruptcy among possible moves as its stores remain closed.

“The company is working through various options at this time and is declining to comment,” said a Le Tote spokeswoman in an email.

Retailers, and specifically department stores, are facing growing financial pressure and considering raising cash, restructuring debt, or filing for bankruptcy as a way to manage their sizable debt burdens.


Sales of baby stroller increased by 174.1% in March, and sales of building blocks increased by 48% on Tmall

With the steady progress of resumption of production in all walks of life, Tmall data shows that in March sales of toys and main categories of children’s products have increased to varying degrees. Among them, the sales of building blocks increased by 48% month-on-month; the sales of four-wheeled baby stroller increased by 174.1%; the sales of safety seats increased by 216.4%. While sales increased month-on-month, the trend for consumers to purchase mid-to-high-priced products has become increasingly apparent. Sales of the TOP5 brand accounted for 50.8% of the total sales in building block toys, an increase of 6.3 percentage points from the previous month. In March, the average price of building block toys was 96.8 yuan, and the best-selling single product prices of the TOP5 brands were higher than the average price of this category of products. Among them, the number one brand is Lego, and its sales account for 25.6% of the total sales of this category. The best-selling single product of the Lego brand is "Machinery group Bugatti 42083 assembled building block model educational toys", the average transaction price is 2558 yuan.


Poland International Baby & Toddler Products Fair stops growing due to absence of Chinese exhibitors

Due to the impact of the epidemic, the number of exhibitors at the 11th Poland International Infant and Baby Products Fair in 2020 decreased from 564 last year to 532, ending several years of continuous growth. In an interview, Andrzej Mochon, president of Targi Kielce, the organizer of the exhibition, said in an interview: "Of the 33 Chinese companies in the press, 22 have given up on exhibition due to cargo transportation and traffic control issues."

Targi Kielce plans to increase the scale of the Polish International Baby Products Fair in the next few years. Due to the current sharp decline in Polish baby wheel products, the exhibition plans to increase new categories such as school supplies, paper products, textiles and baby party supplies. It also plans to invite exhibitors from Germany, Turkey, Russia and other Eastern European countries, as well as buyers from Eastern European countries such as Russia, Ukraine and the Czech Republic. It also hopes to strengthen exchanges with Germany and Italy to make the exhibition more international.


Japanese toy giant Bandai's toy factory began to produce masks

In addition to donating 100 million yen to WHO, SEEDS, a toy OEM factory of Bandai, was commissioned by Yokohama Kikuname Memorial Hospital to start production of protective masks from the end of April, and it will be put  use as soon as possible in May. The protective mask includes 1 set of brackets and 5 sets of masks. It is currently confirmed that production will continue, and some will be put on sale.

 

The 22nd Goodbaby Group Large Sale Campaign, 30 series of products were sold out on the first day

From April 22 to April 26, the live broadcast platform of the 22nd Goodbaby Group's large sale campaign was officially launched. The online sale event covers more than 30 maternal and infant brands and hundreds and thousands of maternal and infant single products, providing consumers various products from feeding to cleaning, from protection to protection, from sleeping to traveling, from wearing to toys, a comprehensive demand solution attracting a daily traffic of up to 15 million, with an average of over 20,000 users per minute, and 30 series of products sold out.

Unlike previous offline sales events that mainly cover Jiangsu, Zhejiang and Shanghai consumers, this Goodbaby “online sale” event breaks the space limitation, with the online platform's advantages, realizing omni-channel communication and reached more geographical consumers, and drives consumption in the maternal and child products consumer market. Goodbaby has been exploring the integration of online and offline special sales. On the one hand, it uses offline channels for online direction; on the other hand, it continues to dig deeper  user value through online products, and explores the integration of the brand's sales, research, production and service for integrated operation. There’s huge room for development in the future.

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