What Does The Amscan / Wonder Group Demise Mean For Our Industry.
I’ve been asked by other manufacturers, wholesalers and retailers, about my take on the Amscan/Wonder situation and how their intention to file for administration, will affect our industry. Decorators are particularly concerned about the ongoing supply of Sempertex balloons, so here’s where I believe we all are right now.
But before I start, can I take a moment to say my thoughts and best wishes are for those employees, suddenly finding themselves without job security. And let’s not forget suppliers of all sizes, wondering if Wonder, will make good on their obligations to pay them. It’s often easy to forget the huge impact on the lives of good ordinary people.
Looking at Wonder, it’s too early to assess the damage, but the injury is deep, possibly fatal! Whoever convinced investors they were on target to hit a £500 million turnover by 2026, I want as my negotiator, as I have my eye on a £50 million mansion in Monaco, that I’m sure I can make payments on by 2027!
If anyone hasn’t seen the seismic shift over the past few years, they simply don’t understand our changing industry and that’s the problem. To the investors and decision makers, balloons are nothing more than a commodity. To them it’s “Only balloons”. But for some, it’s our life! I’ve seen the shifts and predicted what would happen a few years ago, but very few wanted to listen. This isn’t one of those “I told you so emails”, but I do get frustrated when the clues are so frickin obvious, but ignored by so many!
The reality is these companies are no longer the power players they used to be. They played a very dangerous game of trying to buy and dominate the market, irrespective of the damage it would do to others. They became a global designer, manufacturer, distributor, wholesaler and retailer of party products, operating across 15 countries and this had a negative impact on every wholesaler and retailer. Our trusted supplier suddenly became our competitor, on a completely different scale.
But then, they started to see how our industry was changing, suddenly, their market share was shrinking, competition was growing and they no longer offered much, that a dozen other suppliers couldn’t provide. So perhaps with their current woes, we will all benefit by getting some of our market share back!
As for Sempertex, for us, this is currently the number one selling and best quality balloon on the market. And here’s what’s interesting, they haven’t done this with slick marketing, buying the market or aligning to any influencer. They’ve done it by having a great product, that professional decorators use and love. and we simply can’t allow this brand to fail.
So, I just wanted to reassure you that in the event of any supply issues at Wonder/Amscan, we have a Plan B. I’ll share more information with you if or when the need arises. But for the moment, it’s business as usual, knowing we will keep supplying Sempertex when you need it!
For those that regularly read my newsletters, do you remember last year when I said, some huge names would wobble and fall? Well, this isn’t the end. The shift in Power Players is moving fast and there’s no going back!
