China Sourcing Report: Toys & Games

25 Mar 2011 • by Natalie Aster
China Sourcing Report: Toys & Games

Indonesia – China’s toys and games industry has a sunny outlook for 2011, with the majority of companies expecting overseas sales to climb 10 to 20 percent in the next 12 months. Customs statistics show that growth in the previous year has completely secured the sector’s recovery after its decline in 2009. Outbound shipments in the 11 months to November 2010 rose 20 percent YoY to 13.9 billion units worth $9.3 billion. These numbers are also 7 and 16 percent higher than 2008 data in terms of volume and value. North America, the EU and the Asia-Pacific region accounted for nearly 90 percent of revenue. Suppliers anticipate that the recovery of global economies will continue to stimulate external demand. Even rising production costs and the looming enforcement of the EU’s tighter Toy Safety Directive have not dampened the industry’s forecasts.

The “China Sourcing Report: Toys & Games” by Global Sources covers arts and crafts, building blocks, construction sets, action figures, dolls, play vehicles, and educational, developmental, electronic, outdoor, sports and stuffed toys. Each product category has its own section discussing design trends specific to the line. It also details the features and prices of low-end, midrange and high-end models.

Further, the chapter elaborates on the industry composition, highlighting key characteristics of the different types of companies. The Industry Overview explains suppliers’ strategies for boosting revenue and dealing with tighter safety standards and higher production costs. The provinces of Zhejiang, Guangdong and Jiangsu are the main production centers. Reflecting this structure, more than 40 percent of featured companies come from Zhejiang. About one-fourth is based in Guangdong. Exporters from Jiangsu account for 11 percent.

Report Details:

China Sourcing Report: Toys & Games
Published: February 2011
Pages: 93
Price: US$ 350.00

Key findings:

  1. Because most suppliers have longstanding ties in developed countries, they will continue to target these markets by broadening midrange and high-end selections. The emphasis on environment-friendly toys is part of the approach. Some businesses will launch more designs with sophisticated electronic play modes.
  2. Companies will expand into emerging economies, taking advantage of bilateral free trade agreements and less stringent safety and ecological requirements. Instead of material and functional enhancements, R&D will center on modifying appearance according to regional preferences.
  3. Compliance with the EU’s Directive 2009/48/EC is mainly being addressed through careful procurement of components. Apart from securing test reports from upstream providers, makers are commissioning third-party institutes for chemical analyses of samples.
  4. Manufacturers are looking to buyers for guidance in fulfilling new tracking requirements. Label information and location will generally depend on client specifications.
  5. Suppliers will be raising prices in the next six months due to the adoption of costlier nontoxic materials. Higher valuation of commodities is also a factor. The majority of surveyed exporters, however, intend to limit upward adjustments to 10 percent.
  6. Several companies plan to focus on smaller models as a means of reducing production expenses.

More information can be found in the report “China Sourcing Report: Toys & Games” by Global Sources.

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