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| Toy prices expected to rise after pound's Brexit plunge | Toy prices expected to rise after pound's Brexit plunge |
| (35 minutes later) | |
| The price of some toys could rise by up to 15% as a result of the plunging pound, manufacturers have warned. | 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. | 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. | “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. | “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.” | “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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | “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%. | 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. | 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. |
| A new spin on Meccano | A new spin on Meccano |
| 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. | 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. | 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. |