Germany’s toy and games industry on Wednesday said it is hoping for a seasonal upswing amid a difficult economic period.
German consumers’ cautious spending has affected the usually resilient sector, said Steffen Kahnt, managing director of the German toy retailers’ association (BVS).
But although the public has been saving, people are likely to still spend money on Christmas gifts for youngsters, Kahnt said.
He pointed out that spending around the festive season remained stable last year despite the sense of crisis.
The BVS forecasts that Germans are likely to spend €4.4 billion ($4.6 billion) on toys this year, 3% less than last year.
In view of inflation and the tense economic situation, shoppers are tending to opt for cheaper products, said Joachim Stempfle from the market research institute Circana.
But a BVS-sponsored survey showed that may change when it comes to Christmas gifts. Shoppers spent €150 on average per child on toys last Christmas, up from €148 the year before.
“The coming weeks will be crucial,” Stempfle said, adding that many people only buy Christmas presents in November and December.
Last year, the industry made 34% of its annual sales in these two months.
Most in demand this year are toys with artificial intelligence, such as robots, and classic goods such as trains, construction kits and games, the BVS said.
Prices have remained stable this year, said Kahnt, with no significant price increases expected in the coming months either.
But toy retailers and producers fear online platforms in China, which they say are offering toys at very low prices.
Test purchases in spring and autumn showed that a large proportion of these products did not meet EU toy safety regulations, said Ulrich Brobeil from the German toy industry association, though legal proceedings to address liability have not yet made headway.
