Vietnam is developing as one of the world’s key supply centers of moderately priced baby and children’s toys and garments. Products feature a unique combination of aesthetics and quality.
The line boasts strong support from the larger wooden products and garments industries in the country. Competitive advantages of both sectors are also enjoyed by the smaller toys and children’s apparel segments.
Another key benefit of sourcing from Vietnam is a readily available supply of raw materials. Different types of textiles and wood can be sourced from within the country, facilitating competitive prices.
The industry is export-oriented. In fact, most suppliers featured in this report send the bulk of their output to overseas clients. The EU is the main market, followed by Asia-Pacific and North America.
Toys dominate as the top product segment, accounting for close to two thirds of total exports among featured companies. Within this line, children’s models make up most of turnover.
Garments take up a third of overall exports. Children’s wear represents the majority of models turned out by this segment.
Small, locally owned enterprises are the main type of companies in the industry. Most suppliers have been in business for two decades. A number have been manufacturing products since the 1950s.The cities of Ho Chi Minh and Hanoi are the major production centers for toys and children’s wear. These places host not only the head offices of most manufacturers, but their factories and showrooms as well.
Other key supply zones for the industry are the provinces of NamDinh, Binh Duong, Dong Nai and HungYen.
The line remains strong in spite of the widespread effects of the global economic crisis. Nonetheless, it is facing several challenges that threaten to hamper its development. Rampant design piracy is one of the major issues affecting the sector.
The following are some of the keytrends we see in Vietnam’s baby and children’s toys and garments industry:
• Due to intense competition in the line, most featured suppliers anticipate prices to stay level over the next six months. This strategy will be employed to ensure buyer loyalty and offer attractive quotes to prospective clients in new markets.
• An improved business climate is expected in the next 12 months. In light of this, all companies interviewed for this report have indicated that export turnover is predicted to improve overthe previous year.
• The majority of featured companies will continue to focus on the EU as their main export destination. A growing number of suppliers are shifting to the US as their secondary market, which is indicative of renewed confidence in that country.
• To further underscore the developmental aspect of toys, new products will feature colorful patterns and designs. Garments are also expected to come in eye-catching styles.
The above is extracted from the Executive Summary of China Sourcing Report: Vietnam - Baby & Children's Toys & Garments
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/vietnam-baby-childrens-toys-garments
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