subject: Hong Kong Toys and Games Fair closing manufacturers worried about the prospects ahead in 2008 - Hong Kong Toy Fair, toy manufacturers, toy exports - [print this page] Hong Kong Toys and Games Fair closing manufacturers worried about the prospects ahead in 2008 - Hong Kong Toy Fair, toy manufacturers, toy exports -
This year was characterized by sadness and anxiety.
Experienced in 2007, often recalled the product after the plight of China's toy makers are facing more problems this year. In the Thursday closing of the 34th Hong Kong Toys and Games Fair, the toy manufacturers the prospects for 2008 are full of worries, oil and other raw material prices rising, labor shortages and government regulatory efforts to strengthen both their anxiety.
For joint efforts of these negative factors will increase the production cost of Chinese toy industry, and industry structure are likely to change again. China's toy industry has emerged in recent years a large number of small businesses competing to lower their prices to overseas export toys. Cost pressures could make those smaller, weaker corporate bankruptcy, so that a slight increase in business survive more bargaining power, and has the potential to toy prices have increased, at least at the wholesale price level.
The other hand, out of those who face greater pressure on costs and the trust of small businesses, the toys will eventually raise the level of security.
Held in Hong Kong, Asia's largest toy fair on more than 2,000 exhibitors in the most direct either their toys in China, or that the sale of products sourced from China. Currently 80% of toys made in China.
Hong Kong Toys Council (Hong Kong Toys Council) President Chen Yonglin (LawrenceChan) said that small toy manufacturers face pressure from all buyers, those too weak businesses will face more survival.
The past few years, start-up production and export of toys to toy manufacturing industry, a large number of emerging competition has increased dramatically. These new companies start price only to meet the needs of buyers, after operating for some time aware that they have to face the issue of product maintenance and quality control.
The U.S. Consumer Product Safety Commission (CPSC) of the international projects and intergovernmental affairs officer Richard Aoboruien (RichardO'Brien) said that these cost pressures force manufacturers to do in the production link adjustments, start-ups or mistakes in the process likely to make unwise decisions than those who had established the business back on track corporate reputation is much higher.
Chinese toy industry's overall export situation is good. The Government recently announced the first 10 months of 2007 China's toy exports rose 20% to 71 million. But the United States before and after Christmas toy sales grew by only 3% estimate. China's toy exports to Europe to some extent offset by strong growth in the U.S. toy market, the adverse effects of weak, but in fact many Chinese toy exports overseas soliciting a circle then re-imported to China, manufacturers used this method to defraud the government of the export tax rebate .
Some of the Hong Kong Toys and Games Fair exhibitors have also slowed economic growth in Western countries, consumption of its toys, expressed concern about the adverse effects. Toy manufacturers have to rely on mass production to make a profit, because the toy assembly and processing industry profit margins are notoriously low. With the substantial increase in production costs, more and more toy manufacturers can not continue to maintain operations.
Wing Tai Plastic & Metal Factory Co., Ltd. (Wing Tai Plastic & Metal FactoryLtd.) Boss StephenLai that this year's operating situation certainly more difficult than last year, some of the cost of electronic components increased by 40% to 50%. This medium-sized about 500 employees.
Against China last year produced a series of global recalls of toys were recalled products, or defective design or production problems, the Chinese toy manufacturers now must meet product standards, safety and certification aspects of a complex system and increasing range of regulatory requirements, otherwise it can not continue to sell products. Only additional product testing would be the product of Wing Tai Plastic & Metal Factory prices pushed up about 10%.
Strong emphasis on product safety is not the only Americans. StephenLai said the Chinese government has also urged toy manufacturers to test their products before listing for sale.
CPSC's Aoboruien said China's consumer regulator the State Administration of Quality Supervision, Inspection and Quarantine (Aqsiq) confident, with its increasingly stringent regulation, those small, poor strength of the toy manufacturers will be eliminated. Aqsiq reporters did not respond to requests for comment.
