Why do shortages within the toy industry occur?
Yes, Supply & Demand! The one thing to realize is that the TOY industry is a very tricky business and it all comes down to fashion trends! The leaders in this industry are always struggling to stay on top because it’s always changing and it’s hard to meet that type of demand because of the following! Their marketing campaign only required the manufacturer to make a Faze 1 which will be the amount that they feel will meet the demand they have generated. They do all kinds of surveys to determine this but sometimes they are wrong! Sometimes they make too much and it’s a loss to their company and that toy ends up on some shelf of some discount store or sometimes it’s not enough! For the toy company this is a good sign. They’ll know once the numbers of their pre-orders come in! Example: The Tickle Me Elmo and The Sony Playstation 3! Both these items met a bigger demand then the manufacturer anticipated. They had to re-run another amount they felt will meet the new demand based on pre-orders
