Three sharp swords on the head of Foshan toy companies

by:Ennas      2021-12-04

'I have participated in dozens of Canton Fairs, and I feel that the flow of people is getting less and less. Especially in the past few years, our customers are mainly existing customers, and there are few new customers. Their desire to buy has declined. Very powerful.' Deng Junsheng, sales and marketing manager of Foshan Meilebao Toys Co., Ltd., told reporters. At the second phase of the Canton Fair held the day before yesterday, exhibitors clearly felt that the passenger flow was reduced. Foshan toy companies have always used Europe and the United States as their main export destinations, but yesterday there were not many merchants from Europe and the United States, but there were more merchants from Eastern Europe such as Poland and Russia. Said Lu Sha, Sales Manager of Yalishi Cosmetics Co., Ltd. The reporter's interview found that the continuous fermentation of the new European and American toy standards and the downturn in the European and American markets, rising labor and raw material costs and changes in the RMB exchange rate, the low added value of Foshan toys and the lack of technological innovation, these three factors have become Foshan toy companies. With three sharp swords, seeing profits become thinner and thinner, many toy companies have no good countermeasures.  The profit is getting thinner and the price cannot be raised  The new European and American toy standards have been implemented for two years, but for Foshan toy companies, the impact is still great.   Deng Junsheng told reporters that the European EN-71 standard, which is commonly used in toy safety testing, used to have only two parts. The third part was updated in July last year. The testing standards have been improved a lot. Now 19 elements are to be tested. Take a three-wheeled doll car as an example, 'The production of this product requires more than a dozen materials. In the past, a material test only cost 200 yuan, but now it costs 600 yuan, which directly triples the cost.'    In addition to testing costs In addition to the increase, the prices of labor and raw materials are also rising. The RMB depreciates internally and appreciates externally. 'Export costs are too high, profits are getting thinner and thinner, and now customers are bargaining more and more. We must insist on a reasonable Profit, or the factory will go bankrupt.” said Pan Miaoxia, the business manager of Huanrun Import and Export Co., Ltd., Shunde District, Foshan City. Profits are getting thinner and prices cannot be raised. Foshan toy companies are very hurt. 'The market is sluggish, and global toy companies are competing fiercely. Most of the toys have low technology content and can only compete by lowering prices. But Foshan toy companies There is no advantage in starting a price war, and Shantou Chenghai can be pressed even lower.' said Li Quanyu, business manager of Foshan Meishida Toys Co., Ltd.   Even more serious is that even though the product has some technical content, due to the characteristics of the industry, the product is quickly eliminated. Huanrun produces car models. Compared with plush toys, this product has a much higher added value. 'The cost of a car model from design, processing and production to final shaping costs hundreds of thousands of yuan, but it will take two to three years. It has been updated.' Pan Miaoxia said.   How to break the game? Deng Junsheng is not very optimistic. He said that toy production cannot be like other manufacturing industries. Large-scale mechanized production can replace manpower. At most, it can only be semi-mechanized. For example, to produce baby strollers, machines can be used to cut cloth but glue The part has to be done manually by workers. Lu Sha said that the company just bought a labeling machine this year to replace part of the labor. “The cost can only be reduced a little, and the help is not great. The machine also needs cost. I can only hope that skilled workers can slightly improve production efficiency.”    Unpopular segmentation Some market reporters saw at the Canton Fair that the products of Foshan toy companies are mainly doll cars, toy beds, plastic impressions, color clay suits, etc. These toys can be seen everywhere in the exhibition hall. The toy products produced by Buddha companies come from Enterprises in Chenghai, Shantou, the city of toys, have production, and the price is cheaper than the same period last year.   is also trapped by the three sharp swords mentioned above, but compared to popular products such as plush toys, Yalishi Cosmetics Co., Ltd. seems to be in better condition. The company’s main product is cosmetic toys. The girl’s version of the package is pink, with small mirrors, brushes, foundation, etc., while the boys’ version is white or blue, mainly brushes. Among the toy companies exhibiting in Foshan, only Yalishi produces such products. As far as this Canton Fair is concerned, there are not many companies producing such products. 'Our products can be put on makeup or painted on dolls. Boys can pretend to be ghosts or clowns on Halloween.' Lu Sha said, because the products are relatively unpopular, the competition that Yalishi faces is much smaller. There are only two companies in Foshan that produce cosmetics toys.” Lu Sha said, because the product audience is relatively narrow, compared with mass toys, the demand is also less, but because there are not many competitors, the life is easy. At present, Alice’s main export market is in Europe, and recently it is also actively exploring markets in Russia, Eastern Europe and other places. Compared with other old customers who rely on stock for popular toys, Lu Sha said that Alice has also added many new customers. Because of the unpopularity of products, new customers in specific directions are more likely to accept their products than popular toys.   'The cost of manufacturing in China is getting higher and higher. If you simply rely on lowering prices to compete, you will no longer have an advantage in Southeast Asian countries such as Vietnam, and you may be able to find a breakthrough in market segments.' Lu Sha said.
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