Every year from June to September is the traditional peak season of China's toy export. At this time, due to the increasing demand for supplies such as Halloween and Christmas in places like Europe and the United States, the overseas orders of toy enterprises in China will have different degrees of growth. At the same time as the global economic situation is picking up, toy exports have also risen steadily along with this market. According to statistics, the total value of China’s toy exports during the first seven months was US$4.75 billion, which has reached the level before the financial crisis broke out. However, there are many hidden dangers behind the seemingly calm toy exports, and will further restrict and influence the future growth of China's toy industry.
Toy companies reproduce the lack of work
Many toy companies still vividly remember the large-scale “labor shortage†in 2009. Since then, the phenomenon of difficulty in employing toy companies has never been solved. In the second half of the year, it is also the time when workers are moving more frequently. The phenomenon of difficulty in recruiting toy companies once again placed in front of major companies. On the one hand, workers have raised their living facilities and wages for toy companies. On the other hand, toy companies have more technical requirements for workers. The two sides could not find a meeting point, which led to the difficulty of solving the problem of enterprises' employment difficulties.
Rising costs squeeze profit
Due to the increase in the cost of artificial labor in the area where raw materials and toy companies gather in China, the cost of most toy companies in China has risen by about 20%. However, customers only increase the price by 3%-5%. It is a fact that the profit of toy companies is getting lower and lower. . Taking plastics for toy production as an example, it has increased by about 15%-20%. This high rate of increase has caused many toy companies to use their brains. The rise in raw materials has strained the funds. In the toy export process, many customers are required to pay for the goods and then pay the money. If the customer's credit is not good, the toy company's cash flow will not turn around, and it will even face the risk of failure.
High barriers remain barriers to toy exports
In recent months, despite the signs of encouraging recovery in the traditional toy export market, exports to ASEAN have increased by nearly double, which has laid a good situation for toy exports. However, it is worth noting that toy export barriers have been gradually built up. Increasing height has become the biggest barrier to the continued development of toy exports. According to the EU's Non-Food Rapid Alert System (RAPEX) statistics, as many as 53 Chinese products were reported in the first 4 months of this year alone, accounting for 76.8% of the total number of notified countries and regions, among which, exporting toy products became notified. The worst-hit areas "have a total of 38. At the same time, the new "EU New Toy Safety Directive", hereinafter referred to as the "New Directive", has been confirmed to be formally implemented on July 20 next year. Compared with the current directives, the "New Directive" that will take effect next year is in terms of physical and mechanical properties and chemical properties. , Electrical performance, hygiene, warning signs, conformity assessment, CE marking have made higher requirements on the visibility, called "the most severe EU toy regulations in history." In addition, emerging markets such as Asia are closely following the pace of markets in Europe and the United States. Vietnam’s safety standards for toy products at the beginning of this year have increased the testing of aromatic amines, formaldehyde and liquids. Frequently building trade barriers has added many unknowns to toy exports, which has greatly hindered the further expansion of China’s toy export market.
Countermeasure 1: Government support
Faced with many hidden dangers, toy companies urgently need government support in policy formulation and funding. In the course of the transformation of the toy companies, it is hoped that they will be able to more easily understand the preferential policies of the government and take care of the funds.
Countermeasure 2: Improve Your Design Level
Raise the level of independent design of toys, actively develop high-end independent products, speed up industrial upgrading, and do a good job of technical control measures to overcome the defects of serious product homogeneity and lack of innovation, and cultivate the competitiveness of toy exports.
Countermeasure 3: Strengthen the Cultivation of Emerging Markets
In the situation where traditional toy export markets are increasingly difficult to do, many toy companies have already turned their attention to emerging markets. In the coming time, the situation of the European and American markets as the largest market for toy exports in China will change.
Countermeasure 4: No profit refused orders
As the cost continues to rise, many toy companies have said that they should be good and single, and bad ones should not be connected. The purpose of doing so is only one: to ensure that there is a certain profit.
In the face of various hidden dangers in the export season of toys, toy companies can only face the current situation, on the one hand, open up the domestic market to foreign emerging markets in a timely manner, and on the other hand improve their own quality standards. Allowing your company to free itself from simple OEM production and properly carrying out the production of its own brand is the way to rejuvenate the company.
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