Some foreign toy companies in the Dongguan area have considered moving to Southeast Asia or Mainland China for investment
In the first quarter of 2014, the Dongguan area exported 37,107 batches of toys, an increase of 4.17% year-on-year, and the value of goods was 561,665,800 US dollars, an increase of 20.37% year-on-year. Recently, the reporter learned from the Dongguan Inspection and Quarantine Bureau that, on the surface, although the export of toys in Dongguan is still developing, undercurrents are surging behind the prosperity. Many companies report that actual operations are difficult. The continuous tightening of foreign technical barriers, the increase in testing costs, and labor costs have greatly restricted the development of companies. At present, some companies have tried to send out more labor-intensive processes or directly invest in factories in other places. This will become a hidden danger for the development of the export toy industry in Dongguan and face more severe challenges. Rising costs squeezed profit margins According to the quarantine statistics from the Technology Center of Dongguan Inspection and Quarantine Bureau, in 2013, the unqualified rate of chemical properties in toys and its high-risk raw materials was 1.11%, a significant increase from the unqualified rate of 0.14% in 2012. This reflects the difficulties faced by companies in responding to the new EU directives, and also shows that some companies have reduced their procurement requirements and verification efforts for high-risk raw materials for toys due to cost pressures. The staff of the bureau said that the inspection and supervision of the chemical properties of toy products should be strengthened to prevent the recurrence of the toy storm in 2007. At the same time, as the European Union, the United States and other developed countries have introduced technical trade measures with broader coverage, stricter testing requirements, and higher technical thresholds, the successive implementation of these laws and standards has not only increased the production costs of my country’s toy companies, but also Will further raise the barriers to entry in the US and European toy markets. Technical trade barriers continue to be tightened In addition, in order to meet the requirements of foreign technical regulations, toy companies must increase the cost of design and product testing to ensure that their products meet the requirements of foreign technical regulations. Taking Dongguan's toys exported to Europe as an example, the test cost is as high as tens of thousands of yuan in accordance with the requirements of relevant EU standards. The cost of toy design, production and testing has risen sharply, which has caused considerable impact on export toy manufacturers in Dongguan. Under the premise that foreign customers are unwilling to raise their quotations, toy companies may not dare to take orders or seek cheap alternative materials, which increases quality risks. Fewer self-owned brand exports of toys According to reports, although toys made in Dongguan enjoy a high reputation and reputation among foreign customers, and have a certain market share, most of the exported toys are at the low end of the price or are OEM production. Since the design and brand of OEM toys are in the hands of foreign customers, the added value of the products is low. Although some companies are currently striving to develop their own brands in an attempt to seize the initiative and have achieved certain growth, such as private enterprises such as Zhilebao and Xingyue, in terms of the number of enterprises and the number of products, the export of independent brands in Dongguan is There are still fewer toys. In recent years, toy manufacturing in many places has developed rapidly. Due to the rapid increase in labor and land costs in the region, some foreign toy companies in Dongguan have considered moving to Southeast Asia or mainland China for investment, while velvet toys have fewer supporting materials and simpler processes. The relatively large demand for manpower has become the hardest hit area for industrial transfer. For example, a Korean-owned velvet toy manufacturer in Dongguan had nearly 2,000 employees in 2008, but there are now less than 200 remaining. The reason is that the company invested in Indonesia to build a velvet toy manufacturer with nearly 2,000 employees. , Now only orders with tight delivery time and high quality requirements are placed in the production of enterprises in Dongguan. It is also reported that because the foreign toy industry chain has not yet been perfected, product quality, service, category, design, etc. still have a considerable gap with the Dongguan area. The transfer of the toy industry has not yet occurred on a large scale, and the short-term impact on the toy industry in Dongguan is limited. With the development of emerging market countries, the long-term threat of the transfer of the toy industry cannot be ignored.