It Ain't No Lie, Toymakers Are Saying Bye, Bye, Bye to Batteries
At first, the president made light of it, saying children would have two dolls instead of 30 when tariffs increase consumer prices, but then the market started to see the real-world fallout.
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In May, Mattel announced that it would need to raise prices on its products to offset higher supply chain costs. The following month, Hasbro cut some 150 workers and said it would have to raise consumer prices to adjust to increased costs. According to the Toy Association, about 80% of toys sold in the U.S. are imported from China.
Now, according to Reuters, toy makers are looking for ways to further cut costs to cushion the blow from a 30% blanket tariff on Chinese goods, and it has translated to product and packaging redesigns.
The first to go, which may rile the "back in my day" members of the crowd, are batteries.
Toymakers are also reducing accessories, such as fewer plates in toy kitchens and less makeup on dolls, while still increasing prices and using cheaper packaging. CEO of toymaker Basic Fun! Jay Foreman told Reuters it's pretty simple: the consumer will either pay more or get less.
These design overhauls typically take about a year to implement, and while companies are cutting the number of products in their portfolio in the interim, they still need something on shelves this holiday season.
It's a tricky balancing act for manufacturers, who need to make a toy families can afford, but one that kids still want to play with—we will soon see what that looks like.
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