China is the world's largest producer and exporter of children's toys, with toy output accounting for 70% of global output, of which export output accounts for 85% of total output. In 2017, China's exports of toys were 23.962 billion US dollars, a year-on-year increase of 30.4%. Although exports have continued to grow steadily, the toy industry still has to deal with the four major challenges of upgrading foreign technological barriers, increasing domestic production costs, backward industrial structure, and shifting production bases in the process of transforming its development mode and realizing the conversion of old and new kinetic energy.

Technical barriers continue to escalate, and the international trade environment is stricter. The United States and the European Union are the main markets for China's toy exports, accounting for 65% of China's total exports. Since 2017, Europe and the United States have issued amendments to nearly 10 relevant technical regulations to set stricter limits for bisphenol A, formamide, phenol, and lead in children ’s toys. In October 2017, the US CPSC issued a new regulation requiring that specific phthalate content in toys and child care products should not exceed 0.1%. Turkey, Switzerland, India and other countries and regions have also issued a number of regulations in succession, and they have the characteristics of urgent regulations and high technical barriers. The Ministry of Commerce and Industry of India released the latest toy regulations and required immediate implementation. In 2016, China ’s toy exports to India reached US $ 260 million. Affected by this new regulation, China ’s toy export business was suspended by more than 80%. The continuous upgrading of technical barriers increases export risks. In 2017, the EU REPAX notified China of a total of 553 toy products exported, an increase of 18.42% year-on-year; the US CPSC notified 22 toy products of China, an increase of 37.5% year-on-year.

Costs continue to rise and profits continue to fall. Since 2017, the price of plastics, the main raw material for toys, has risen by 30%, and the average price increase cycle has been shortened to 2 months. In October 2017, the average price of ABS was 16,000 yuan / ton, a year-on-year increase of 30.18%; due to the large number of small and medium-sized paper mills The shutdown, in September 2017, the average price of corrugated paper was 5264 yuan / ton, a year-on-year increase of 105.7%, resulting in double the price of packaging cartons. At the same time, China's labor costs are increasing at a rate of 10% to 20% per year, and it is facing difficulties in recruiting workers and the aging of employees. In particular, the shortage of plush toy production workers is as high as 30% to 50%. In addition, the increase in costs such as hydropower, land, and transportation further squeezed corporate export profits. According to the survey, about 73% of the profits of toy companies are squeezed at 5% or even less than 3%.

The industrial structure is backward and the brand competitiveness is lacking. Over the years, well-known international toy companies in developed countries such as Europe, America, and Japan have relied on brand authorization to integrate highly with the animation, culture, and media industries to enhance brand value and expand market share. China's toy manufacturing industry has long adopted the OEM production model, and the industry's "one high and three low" features are obvious, that is, high export volume, low product technology content, low brand added value, low economic benefits, and a severely homogeneous industrial environment squeeze development space. . China's toy companies with independent intellectual property rights account for 20%, and invention patents account for less than 5% of the country's total patents. Among the top ten domestic toys, national brands account for only about 30%.

The transfer of production bases has intensified and orders have been severely lost. Due to the "double squeeze" of the return of manufacturing in developed countries and low-cost competition in Southeast Asian countries, China's toy manufacturing industry is accelerating its transfer. Some German manufacturers are shifting production lines back to Europe due to consumers ’higher trust in German quality. For the first three quarters of 2017, the number of Chinese toys exported to Germany fell by 8.6% year-on-year. The labor cost of Southeast Asian countries is 1/3 of our country, and the production cost is 70% of our country. Toy manufacturers in Guangdong and Zhejiang have invested more than 50% in Southeast Asia to build factories; a toy export company in Qingdao has reduced orders by 50% within 2 years, of which more than 30% have been transferred to Cambodia, Vietnam and other countries.

In response to the above situation, in order to promote the sustained and healthy development of China's toy industry, the inspection and quarantine department recommends: actively expand the emerging markets of countries along the "Belt and Road", reduce dependence on Europe and the United States and other countries, and avoid losses due to sudden changes in the international trading environment. Strengthen brand building, extend the industrial chain, combine with the new animation, film and television industry to reorganize the layout, and promote the conversion of new and old kinetic energy in the industry. Leveraging the "Internet +" technology, the traditional toys and innovative elements will be integrated to develop in-depth in the field of technology and intelligent toys.

Children's toy manufacturers The company's Health Equipment Co., Ltd. mainly produces outdoor children's toys, children's slides, kindergarten toys, tabletop toys, outdoor expansion equipment, fitness equipment, naughty castles, etc. Technological enterprises. Website:. Consultation telephone. Our company is happy to serve you wholeheartedly! Factory address: No. 16, Chuangqiang Road, Light Industry Industrial Park, Lucheng District, Wenzhou City.

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