After a successful 2nd Quarter in 2019, Hasbro CEO Brian Goldner spoke to CNBC to further clarify a statement made during their financial call.
Due to the recent Trade War between United States and China, Hasbro has decided to reduce its toy production in China and keep it under 50% by 2020.
The company currently produce 20% of its products in US while 67% comes from China.
“We’re increasingly spreading our footprint and adding new geographies for production globally,” Hasbro CEO Brian Goldner said during an earnings call Tuesday. “That includes new production in India and Vietnam.”
You can check out Mr. Goldner’s interview, after the jump.
Hasbro CEO on reducing toy production in China below 50% by the end of 2020 from CNBC.
News Post: Hasbro To Reduce Toy Production In China And Move To India And Vietnam
Yep, this is happening in several other industries as well. Increased wages + difficulty to securing a stable work force + threat of 25% tariffs = companies changing strategies.
All those great quality toys....that kids don't play with, get creative like you did in the past and you'll make more money.
India, Vietnam, North Dakota...just make gi joe toys somewhere.
Moving production in an effort to reduce cost may be good news for fans of all Hasbro brands.
If anyone thinks this move will reduce the price at retail, I have a bridge in Brooklyn to sell you.
Every time these companies cut costs, they pocket the savings and pass the expenses on to the consumer.
Keep reading: Hasbro To Reduce Toy Production In China And Move To India And Vietnam - Page 2
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