In the toy industry, the last quarter accounts for 50% of annual sales. However, due to the second lockdown, the market has been disrupted, and manufacturers of made-in-France toys are worried about not being present with distributors.
Containment slows inventory run-off
French toys account for 14% of the market, and are mainly sold in specialty stores, which were forced to close for 4 weeks due to the Covid-19 epidemic.
As a result, stocks of French toys have built up at these retailers, who have already received 60% to 70% of their Christmas orders, but have not yet sold out. The delivery of made-in-France toys, on the other hand, generally takes longer, and is spread out over the last quarter of the year. Manufacturers therefore fear that distributors, whose stocks are virtually full, will not be able to order the usual quantities.
Large retailers, forced to close their shelves of non-essential products so as not to compete with small retailers, have also failed to sell off their stocks. Many toy industry professionals believe that, unlike other years when shelves are empty a few weeks before Christmas, necessitating new orders, this year supermarkets will not have time to sell all the toys in stock and recommend new ones.
Amazon, a showcase not to be overlooked
E-commerce giant Amazon, often accused in recent weeks of hurting small retailers, has nonetheless helped French toy manufacturers gain visibility by giving them access to a dedicated store on its marketplace, an initiative imitated by Cdiscount. For smaller brands, who find it difficult to get their products listed in stores, a presence on Amazon can enable them to generate up to 30% of their sales.
However, despite the difficult context at the end of 2020, the French toy market can still pull through. The reopening of shops and the busy Christmas gift-giving season could still save sales, even if the timeframe will be shorter than in other years.