China Toys & Games Industry

An Expert's View about Major Exports in China

Posted on: 26 Mar 2010

China’s toys and games industry is optimistic 2010 will be a better year for exports, despite ongoing challenges. In fact, the majority of businesses are expecting at least 10 percent growth for 2010. This comes even as overseas sales in the 11 months to November 2009 were down 11 percent to 11.5 billion units worth nearly $7.2 billion.


Among the difficulties that suppliers need to over come are higher material costs and stringent testing standards. Stronger crude oil rates are pushing up quotes for major materials such as polyester. Stricter standards in key export destinations, mean while, are driving up overall manufacturing expenses further.


The following are some of the key developments we see in China’s toys and games industry.

• Companies will continue to invest in ways to ensure compliance with safety requirements such as CPSIA and Directive 2009/48/EC despite high fees and vague definition of coverage.Among the measures set in place are systems for tracking raw materials and verifying test reports, and adjustments in the production lines.

• Efforts to expand market reach into emerging economies such as non-EU countries, the Middle East and the Asia-Pacific region are being intensified. This comes as sales to these areas during the first 11 months of 2009 showed phenomenal growth.

• To cultivate the client base in newmarkets, tier 1 suppliers are fortifying their R&D capability and procuring advanced design, audio application, modeling and animation software. In-house teams are being bulked up with additional engineers, programmers, designers and child psychologists as well.

• Companies are also increasing their focus on the domestic market.Large enterprises are tapping China’s growing animation industry and developing original characters for their local releases.

• Several businesses are branching out into the “green” trend as well. Such makers are offering toys made from recycled and sustainable materials such as sawdust and bamboo. Some models are also designed to introduce earth friendly concepts to children, including dollhouses with solar panels on the roof.




The above is extracted from the Executive Summary of China Sourcing Report: Toys & Games


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Posted: 26 March 2010

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