Mattel Inc, the large toy company that produces Barbie and Hot Wheels, recently raised its 2021 sales forecast, signaling that they expect a strong holiday shopping season to end the year, even with the various global supply chain issues that threaten the holiday shopping season. Mattel now expects its net sales to increase by about 15%, whereas the company previously forecasted an increase of about 12% to 14%.
Mattel explained that, even though the country is facing many supply chain issues that could hamper the holiday shopping season, they expect their sales to finish strong, mainly because of their Barbie and Hot Wheels toys. Already, the company has worked to ensure that supply chain issues don’t stop their products from hitting the shelves of many different stores. Mattel has already increased production, as well as increased its ocean freight capacity. The company has also increased the number of ports it uses around the world.
Many analysts previously warned businesses and consumers that supply chain bottlenecks could keep shelves in many stores empty, or at least with a low stock of highly desired items, such as toys. Demand for toys during the holiday shopping season is expected to be at an all-time high; this has left many brands and businesses rushing to ensure that they have a good supply of toys before the holiday shopping season officially begins.
Supply chain issues are currently causing many problems for countries around the world. Ports in the United States — notably the ports in Los Angeles and Long Beach — have been clogged for weeks now. If these issues at seaports aren’t fixed, then many businesses around the county may not have a steady supply of highly desired items.
Clogged seaports aren’t the only issues the supply chain is facing, however. Many big corporations, such as Walmart, are low on warehouse workers and truck drivers, as the labor shortage has yet to go away. Many companies are working to hire tens of thousands of workers in these spots before the holiday shopping season officially begins to ensure that these problems don’t keep consumers from getting goods and items.
As Mattel is one of the biggest toy manufacturers, the company has more money to solve these problems to ensure that their toys are stocked at locations — something that the business has already done. However, smaller toy brands don’t necessarily have this extra amount of money to ensure the same.
While Mattel is still forecasting a strong holiday season, supply chain bottlenecks in the United States — and worldwide — could still negatively impact the holiday season as a whole. The many supply chain issues have been recognized, yet not ironed out. Therefore, these issues may continue to be a problem, and could even possibly hamper the amount of money spent by consumers this year during the holiday season.
The United States government and many private businesses have made many steps to help ensure that the supply chain functions accordingly for the rest of the year, however. These steps may help keep major issues at bay for the next few months.