Toy Industry Very Robust
PaPaPeng
I did sya at that time that youo'll be buying as much if not more buy
Christmas.
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Buzz back in China's scandal-hit toy industry
Trade fair shows country is still world leader despite recalls and
safety fears
Jonathan Watts in Shanghai
Saturday October 20, 2007
http://www.guardian.co.uk/china/story/0,,2195625,00.html
The Guardian
The appearance of a 2-metre, cross-eyed sea organism and a portly pink
starfish would not normally be reassuring to the manufacturing moguls
of China Inc.
But, after the biggest product safety scandal in 20 years, even the
presence of SpongeBob SquarePants and Patrick Star at this week's
Shanghai Toy Expo represents a vote of confidence in an industry that
has launched a fierce fightback for its reputation.
The cartoon characters joined Mickey Mouse, the Teletubbies and Thomas
the Tank Engine in a Toyland turnout at the international trade fair
that left little doubt that China remains unchallenged as the workshop
of the world.
At the first mainland exhibition since Mattel recalled 21m potentially
hazardous items, buyers and exhibitors said more children than ever
are likely to get Christmas presents produced in Guangdong province in
December.
China makes 60% of the world's toys, and is an increasingly important
market. At the mainland's biggest toy show, its dominance was evident
in a record 400-plus exhibitors and more than 3,000 registered buyers.
It is a long way from the worst fears in August, when the world's
biggest toy firm, Mattel, pulled items including Batman, Barbie, Polly
Pocket and Doggie Daycare products from the shelves because some toys
contained lead paint or magnets that could be swallowed by children.
The recall led to a suicide, a bankruptcy and the tarnishing of the
Made in China label.
But China's manufacturing juggernaut has powered on. Toy exports rose
18% in the first nine months of this year, Mattel has been forced to
apologise for its design faults and multinational toy firms are still
lining up to enter the domestic retail market.
If there is an impact it will not be felt until next year, when toy
prices could rise because of tighter safety checks. "We are very, very
worried about the export market," said Stella Ng of the TianQuan toy
factory in Guangzhou, which supplies Dream Baby dolls to Toys R Us.
"Our English customers are asking for far more test reports than last
year. If there is no test report, then there is no shipment."
Among the displays was one for British company Hornby, which makes its
Scalextric cars in China. Many others were there for the first time,
including London-based HiT entertainment, which wants to introduce
Thomas the Tank Engine to the local market despite a recall of many of
these Chinese-made products from US shelves this summer.
English buyers said product safety fears were exaggerated and the
blame misplaced. "I think Mattel caused its own problems by not
policing its products properly," said Sean Charlesworth of Whitehouse
Leisure, an Essex-based company that supplies plush toys to several
big British retailers. "It is all about price. You squeeze a factory
too hard and it leads to problems."
Mr Charlesworth said tighter checks introduced since the scandal mean
shipments are being delayed, more goods are being rejected and costs
are likely to rise. But in his sector of cuddly toys, he said, there
were bigger threats to China's competitiveness. In the past year, the
yuan appreciated 7% against the dollar, migrant labour wages rose 17%
and tighter environmental controls helped to increase the price of
Chinese-made teddy bears by 10-25%. For the first time, he is planning
to look at Vietnam and India as an alternative for the millions of
cuddly toys he buys each year.
Charles Riotto, president of the International Licensing Industry
Merchandisers' Association, said the scandal was the biggest since he
entered the industry 20 years ago, but the worst is over.
"When we look back at 2007, it will be viewed as a year when
manufacturers and licensers really took a look at how safe their
products are and how they are perceived by customers. They realise
that it is not enough just to have a good product at a good price. It
must also be safe and consumers must feel satisfied."
But, like almost everyone at the fair, he did not expect a change in
the pecking order of the toy industry. "China has a big advantage. It
has the workforce and the manufacturing capacity in place. The
business is theirs to keep."
Christmas looks set to be made in China for several years to come.
Al Bundy
PaPaPeng wrote:
> I did sya at that time that youo'll be buying as much if not more buy
> Christmas.
>
>
> =======================================================
> Buzz back in China's scandal-hit toy industry
>
> Christmas looks set to be made in China for several years to come.
Triple P paster at it again, rarely an original thought.