What I’m Hearing

   Here is what I’m hearing from my sources:

• Phthalates

Phthalates have become a concern to retailers. Buying offices in the US and Hong Kong are aggressively letting salespeople and their companies know that they do not want it in any toys they are carrying. 

• Pickiness by retailer Hong Kong buying offices

Retail buying offices in Hong Kong have been extra careful in reviewing quote sheets.. They got burned with recalls last year so they don’t want to let anything get by them this year. Accordingly, sales reps are having their quote sheets closely reviewed and having to answer questions that to some seem overly “picky.”

• Reduced case packs

Retailers are concerned about the prospects for this year and are asking for reduced case packs. This way they can maintain turns and downsize in store inventory. 

• Orders are slow

Order generation by retailers is coming slower this year than in past years. Again, a wariness about what is coming down the road economically plus extra care being taken in what products are made of is slowing things down. 

• Fewer direct import and more domestic orders

Some retailers are thinking it may make more sense to pay more for a toy in return for owning fewer inventories and taking on less risk. Therefore, some retailers are asking manufacturers to take the product in to the US and domestically warehouse it for them.

• Conservative posture to new products

Due to uncertainty in how the economy will fare this year, some manufacturers are shying away from trying new things this year and are staying with proven merchandise.