WITH schools around the globe closed and classes are conducted via online platforms, parents are turning to toys and games to keep children’s boredom at bay thus boosting sales for toy companies.
It was reported that the toy industry in the United States saw a 22% spike in sales in April this year, lifted by demand for family-friendly toys such as craft kits, puzzles and board games.
Reuters this week reported, Mattel, the manufacturer of Barbie dolls boosted shipments, resulting in a 10% jump in its third quarter net sales – the biggest increase in a decade.
According to the news agency, Mattel Inc reported a surprise rise in quarterly sales on Thursday and forecast more growth in the holiday season, as retailers rush to restock their shelves.
The report citing research firm NPD said demand was expected to increase as wealthy families with excess of money splurge on toys during the holiday season due to cancelled vacations owing to the global pandemic.
Mattel chief executive officer Ynon Kreiz was quoted as saying he expected Barbie play houses and fashion dolls to be among the company’s best-selling toys for the holiday quarter, but warned of potential overall supply challenges.
“We cannot be certain we will fully meet the surge in consumer demand,” Kreiz reportedly said.
Mattel posted net sales of US$1.63 bil (RM6.75 bil) in the quarter ended Sept 30, beating analysts’ estimates of US$1.46 bil (RM6.04 bil), according to IBES data from Refinitiv.
On a broader landscape, Mattel isn’t the only one enjoying brisk sales as kids were stranded at home due to the Corona virus.
To recap, it was also reported by Reuters last month that sales of Lego saw a 14% jump in the first six months of the year as families under lockdowns spent more time playing together at home.
The Danish toy maker reportedly said it saw the momentum to continue into the second half of the year even after people started going back to work and to school.
Meanwhile, NBC News reported earlier that Hasbro’s game sales have surged more than 40%.
“We’re seeing it across every category from preschool gaming to kid gaming, adult gaming and family gaming,” Hasbro chief executive Brian Goldner reportedly said.
Sales of outdoor toys, pools and playground equipment was up 51% over the same period last year, the report said citing NPD Group. – Oct 25, 2020
