The "force" is awakening U.S. toy imports.
"Star Wars: The Force Awakens" is coming in mid-December, and the consumer excitement over the revival of the film franchise is sending toy imports into the stratosphere, so to speak. Demand for all sorts of toys such as lightsabers and action figures is fast-rising in the U.S. as the film's release date approaches, which is giving importers a substantial boost. Additionally, the pending Star Wars entry has given new life to manufacturers abroad.
China well-poised to benefit from Star Wars boost
The toymaking industries in China and Vietnam had been stagnating recently, but with the wheels of the Star Wars hype machine turning furiously, the sectors have received new life. Asian exports took a hit following China's stock market drop and economic woes over the summer, but George Lucas' franchise seems to have lifted an entire economy onto its shoulders as the plight of the Jedi once again takes over the American collective consciousness.
Manufacturers in China are forecasted to produce the majority of the toys to be imported ahead of – and following – the release of the latest Star Wars film. In 2015, through September, China already controlled 83.9 percent of the market for U.S. toy imports. That represents a 0.4 percent increase year-over-year. In fact, through five straight quarters, U.S. toy imports increased year-over-year after three years of declines. Mario Moreno, the Journal of Commerce chief economist, explained this trend began with the release of the children's film "Frozen."
Star Wars merchandise sales expected to reach billions
However, with the latest entry into the Star Wars franchise a mere month away, toy shelves are likely to be stocked with lightsabers and Millennium Falcon replicas for some time. Star Wars-related products are expected to spawn around $2 billion in sales through the final four months of the year, according to the Chicago Tribune. Though the goods based on the film series cover the spectrum, from board games to aprons and everything imaginable in-between, Chinese toy manufacturers and importers will be gifted an advantageous boost by the release of the film.
Part of the reason that toy imports from China especially will receive a big boost is due to the strength of the U.S. dollar against the Chinese currency. The renminbi has experienced a 5.2 percent decline against the dollar since 2014. This makes imports from China – including Star Wars toys – substantially cheaper. An advantage toy importers have concerning Star Wars merchandise specifically, is the size of the products. Toys based on the Star Wars franchise are typically bulkier, which means they take up more container space than other items.
Once the Star Wars magic wanes, toy imports to slow
The JOC chief economist also warned that when the Star Wars magic fades like a powerless lightsaber, the brief boom period for U.S. toy importers will also end. Children are increasingly turning to electronic goods such as tablets and consoles for entertainment purposes. These products are small, and take up much less container room than Star Wars toys do. As they become more prevalent following the Star Wars boost, toy importers will once again watch import growth shrink, Moreno explained.
In the meantime, though, the Port of Los Angeles seems best-suited to benefit from the Star Wars boom, the JOC reported. Through the first 10 months of the year, the complex handled 26 percent of the cargo imported to the U.S. The Port of Long Beach will also experience substantial gains from the increase in Star Wars toy imports.