Facing the new EU regulations, many small toy export companies have begun to take orders cautiously

by:Ennas      2021-12-04

In order to reduce production costs, more and more toy manufacturers have shifted their production lines for low-end products to Southeast Asia. However, small toy companies that focus on OEM production realize that this type of OEM production is not a long-term solution. Only by focusing on Ru0026D and design and taking the path of brand innovation can ensure sustainable development.  The quality is not good enough, the cost of monitoring is high, and profits are declining, making it more difficult for my country's small toy companies to export to the EU market. Facing the new EU regulations, many small toy export companies have begun to take orders cautiously. Be cautious in taking orders. Starting last year, the European Union has raised the threshold for toy products. Recently, the European Commission published a 'Technical Information Guidance DocumentMore stringent. 'We are a small toy export company. On July 20 last year, after the implementation of the 'New EU Toy Safety DirectiveIt’s even more difficult. This year’s orders have been reduced compared to previous years, and the export profits are even less.” said the person in charge of a small toy export company in Dongguan. 'We can't take orders from Europe and the United States!' said the person in charge of a toy export company in Hangzhou: High monitoring costs have reduced the company’s export profits. Coupled with the recent increase in labor costs, rents, and water and electricity prices, the production costs of companies have been continuously raised, and they have become very cautious in accepting European and American orders.'  'Because of the international economic environment. As a result, the demand for European and American toy markets continues to shrink, which reduces the number of orders from European and American buyers, which directly affects the profits of toy export companies.” said the person in charge of Shantou Hexing Plastic Toy Industry Co., Ltd. 'Our company has no way to compare with large toy export companies. The profit of our products is very low and the number of orders is relatively small. Affected by the international economic environment, many European and American buyers are unwilling to raise prices to buy products, and some Buyers keep prices very low, and products exported to the EU market have to be sent to a special monitoring agency for quality monitoring. Some orders are made and no profit can be made.' Mr. Wang, head of a small toy export company in Shandong Express.  Product quality is not good enough.  The reduction in export orders of toy companies is not only due to the reduction in demand in the European and American markets, but more importantly, the quality of some of our toy export products is not good enough to meet EU toy quality monitoring standards.  According to a survey conducted by the China Toy Association, the production costs of toy companies have generally increased by about 25% in recent years. However, due to weak demand and fierce competition, product prices cannot rise simultaneously. The reporter learned that many small toy export companies also want to increase the price of toy products, but these companies are all low-end products, the materials used are not environmentally friendly materials, and there is no innovative design. The rising production costs and testing costs make These small toy export companies have no way to produce high-end products, and their export profits continue to decrease. According to the WTO’s General Administration of Inspection and Quarantine, the European Commission has recently published a 'Technical Data Guidance Document' to help manufacturers and importers of local and imported toys in the EU submit comprehensive technical data to prove that each toy is in compliance with the European Union. Toy Safety Directive. The new regulations will come into effect on December 27, 2015. All toys that companies export to the EU need to provide technical files. A toy trader who asked not to be named stated that at present, some small toy export companies in my country are restricted by production technical conditions, and their products cannot meet the EU's toy product import requirements. For European and American orders, these companies can only stay away. .   Regarding the problems faced by small toy export companies, industry insiders pointed out that small toy export companies should improve production technology, accelerate the pace of transformation and upgrading, improve the ability to develop new products, and create their own brands. In addition, opening up new markets will become a new profit growth point for small toy companies.
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