Hasbro CEO Brian Goldner spoke to CNBC and Yahoo Finance yesterday, regarding the future of the company. Among the discussion points was the mitigation and contingency plan for the eventual US tariff increase to be imposed to toys manufactured in China.
As a temporary solution Hasbro is planning to pass-on the price increase to the customer and therefore safeguading the retailers.
“We’re having conversations with our retailers and of course we will pass along those costs.”
The company hopes to “effectively pass on those costs” by mitigating the margin internally. But “ultimately, [they] will be borne by the consumer over time.”
In long term, Hasbro is planning to make changes to the products to reduce the cost.
“With time, you can redesign and redevelop your product lines with those tariffs in mind…“
Hasbro is taking action to shift as much production out of China to other countries as possible ahead of this holiday season. About 67% of Hasbro’s merchandise is now sourced from China, down from 90% a few years back and 75% or so entering 2019. By the end of 2020, Goldner expects to have only 50% of Hasbro’s inventory reliant on China.
However, the toy giant is not planning to raise toy prices for the 2019 Holiday Season.
“We certainly want to ensure that we’re not raising prices on products right before the holidays. We would hope we would continue to have a productive dialogue and find other solutions to the situation.”
Increased tariffs will effect from December 15th onward.
News Post: Hasbro Planning To Raise Toy Prices And Modifying For A Cost Cut
Well, with some good news there has to be a little bad news, just to balance things out.
Yes. Screw the consumer and make sure the shareholders keep getting money. The same people who will cut and run when things get desperate because you will have eventually priced out the consumer. I hate corporatism.
5poa
So, already crap product is just gonna get 25% worse thanks to Republican fiscal policy?
Gosh, that's never happened before.
G.I. Joe: Trade Wars! Hey, do you think [redacted] is actually Zartan? Some shit would make a lot more sense if that were the case.
Gosh, that's never happened before.
I miss the times when the toys was much better.
Well... I collect Marvel Legends and Transformers from Hasbro, both of which have hit the top price I'm willing to pay. Add to that the soon to be implemented no plastic packaging policy and I think I'm done with Marvel Legends at least since they will cost more and I won't be able to see the figure to select a good paint job. With Transformers, 30 for a voyager is already too high for me, I only get ones that are amazing now rather than waste money on average figures. I'll just exclusively collect g1. It's a shame, but that's where we're at.
Keep reading: Hasbro Planning To Raise Toy Prices And Modifying For A Cost Cut - Page 2
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