Hasbro to start making toys in Vietnam and India as US-China trade war goes on
By Jeff Sutherland - Jul 25th, 10:35
Hasbro CFO Deborah Thomas says some retailers briefly paused direct import orders from manufacturing locations in the second quarter as they watched the trade situation.
The trade war is changing the landscape of toy land, with Hasbro accelerating plans to shift away from China in favour of new plants in Vietnam and India.
The world’s largest publicly traded toymaker, which has licenses for popular franchises such as “Frozen” and the “Avengers,” said US goods produced in China could drop to about 50% by the end of 2020, from just under two-thirds currently.
“We’re increasingly spreading our footprint and adding new geographies for production globally,” CEO Brian Goldner said on a conference call to discuss second-quarter earnings. “So we feel very good about where we’re going.”
Hasbro is the latest company changing its strategy amid heightened tension between the US and China. There are growing signs that the global supply chain, long reliant on China as the factory for the world, is being permanently transformed. Some multinationals including Intel are reviewing their production plans, while others are already speeding diversification to spread risk as widely as possible.
Goldner said China continues to be a high-quality, low-cost place to make toys, and “it will continue to be part of our global network in a major way”, according to the transcript of the call. Nonetheless, Hasbro said it has already seen disruption because of trade worries.
CFO Deborah Thomas said some retailers briefly paused direct import orders from manufacturing locations during the second quarter as they watched the trade situation. In 2018, 35% of Hasbro’s US and Canada revenue was delivered through such direct imports. It expects the percentage to decline in 2019, forcing Hasbro to take on more imports itself.
If tariffs were to come into play, Hasbro would expect an effect in the fourth quarter, Thomas said.
“We’ve done the work and are prepared to address tariffs if they happen, but continue to believe they would be very disruptive to our business and consumers in the near term,” she said on the call.Business Live
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.