The price of some toys could rise by up to 15% as a result of the plunging pound, manufacturers have warned.
Lego and the producer of Peppa Pig merchandise are among the companies to have announced price rises recently.
Natasha Crookes, spokeswoman for the British Toy and Hobby
Association (BTHA), said most UK toy makers, who typically design
products in Britain but have them manufactured and imported from east
Asia, had managed to contain price rises until now.
“Toys are produced with an 18-month lead-in time, so while some
conversations about pricing have already taken place, clearly some tough
commercial decisions are having to be made now,” Crookes said. He was
speaking at the Toy Fair, a three-day BTHA event at the Olympia in
London featuring 270 exhibitors showcasing toys and games likely to be
popular next Christmas.
“We are predicting price rises of between 5% and 15%, depending on
the category and materials used. The UK toy industry is a very resilient
and creative one, which last year launched 63,500 new products.
“To sustain growth we look forward to more clarity on the process of
Brexit, particularly the relationship with Europe on free trade
agreements, customs union access and favourable tariffs with World Trade
Organization members.”
Manufacturers suggest recommended retail prices (RRP) and retailers
decide whether to pass on any increases to the customer or absorb them.
Despite the squeeze on household incomes and economic uncertainty
after the Brexit vote in June, the BTHA – which represents 80% of the
industry – said the “resilient” sector had enjoyed strong growth in 2016
to make it the fourth largest market in the world after the US, China
and Japan.
The
UK toy market experienced a 6.3% rise in sales last year, pushing up
its value to more than £3.5bn for the first time, according to figures
released at the fair.
It emerged in December that Lego planned to increase its UK prices by 5% from this month as it became the latest manufacturer to respond to the fall in sterling.
The Danish firm confirmed it would raise the prices of its playsets,
bricks and mini-figures as a result of currency fluctuations. It said it
would consider further increases if the pound did not recover.
That means the RRP of a Star Wars Lego Death Star set has gone up by £20 to £419, while the price of a Doctor Who Lego set has risen by £2.49 to £52.48.
Ty UK, the UK division of the US manufacturer of popular
furry collectable animals – with licensed deals including Peppa Pig –
said it had increased its prices by 11% at the end of 2016.
“We took a hit because of exchange rate fluctuations so we felt we
had no choice, although we are guaranteeing a fixed price for the rest
of this year,” said the company’s games designer, Morley Lester.
Sam Ireland, operations manager of BigJigs toys, which makes wooden
pre-school educational toys and trades in 98 countries, said the
Folkestone-based company was putting up its prices by 10%.
The market research firm NPD said overall growth in the market was
largely driven by the popularity of collectibles, which experienced a
year-on-year increase of 44% and account for almost a quarter of toys
sold.
At the Toy Fair, Meccano’s owner Spin Master unveiled a red and black
robotic spider that can be programmed via an app to walk and guard its
owner’s bedroom door. It even squirts water at unsuspecting intruders.
The £99.99 kit, aimed at children aged 10 and older, has 300 pieces
and can be assembled in about 90 minutes. The completed spider spans
about half a metre. The toy will go on sale in the UK in August.
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