Spanish toy manufacturers move their factories back from China, whether it can be retained or not is still uncertain

Core tip: Although the cost of expenditure is high, Chinese manufacturing is still the cheapest, especially for small products with reasonable prices. The advantages are more obvious. As for the trend of relocation, the economic environment will determine whether this approach can be fixed.　　 Reference News Network reported on December 17th Western media said that Spanish manufacturing is back in fashion. China produces 90% of the world’s toys, but as the price of Chinese labor has risen and cannot offset the cost of quality control 9,000 kilometers away, some toy manufacturers have begun to move their factories from China back to Spain.　　 The Spanish newspaper “Nation” published an article on the website on December 11 stating that other unfavorable reasons include increased oil prices leading to increased transportation costs, and orders placed before the summer cannot be restocked during the Christmas season. Toys sold in Spain must meet European manufacturing standards, forcing manufacturers to send supervisors to China or subcontract this business to some Western companies, such as Bureau Veritas International Inspection Group.　　 Jose Antonio Pastor, chairman of the Spanish Toy Manufacturers Association, pointed out that despite the high cost of expenditure, Chinese manufacturing is still the cheapest, especially for small products with reasonable prices. The advantages are more obvious. As for the trend of relocation, the economic environment will determine whether this approach can be fixed. According to the association, some toy manufacturers, including Spanish Injusa, have moved their factories back home from overseas.　　 Injusa Group is one of the largest wholly-owned toy manufacturers in Spain, mainly producing large wheeled toys and garden toys. The family-owned company has relocated its production back to Spain since 2011. The chairman of the group, Luis Bevegar, pointed out that we have lost 25% of the profit margin by doing so, but improved quality control and can complete orders within a few days. Bevegar said that 54% of the toys they produce are sold during the Christmas season, and that they can be restocked as much as possible if they are produced in Spain.　　 Injusa Group has increased investment in innovation while relocating production. I want to create value and differentiate from the fashion made in China. If I want to be competitive, I can no longer produce cheaply in Asia, Bevegar said. This 120-employee company has its own Ru0026D team of 7 and participates in national-level innovation plans. Through product innovation, 80% of their products are exported to 35 countries, and sales have grown at an average annual double-digit rate, reaching 21 million euros.　　 Bevegar is the representative of the third generation of this family. He made Injusa Group the first toy manufacturer to obtain the Spanish certificate of origin.　　Some toy manufacturers in other countries are limited to assembling parts in their country or packaging in Asia. This situation exists in all walks of life, and there is no clear information on the origin. The Spanish certificate of origin complies with the European production standards, which is also the most demanding standard in the world, and has a high status in the minds of buyers. The auditors of the Spanish Certificate of Origin Agency will visit the manufacturing plant to evaluate the entire production process, as well as the research and development, design, and origin of raw materials. (Compile / Wang Meng)