Due largely to the cost of compliance with stricter overseas and domestic regulations, many small to medium baby toy manufacturers are expected to switch to other product lines or to cease operations altogether. This is according to Global Sources' China Sourcing Report: Baby Toys (http://www.chinasourcingreports.com/babytoysreport).
"Since last year, a range of mainland China-made toys, including baby toys, must obtain the China Compulsory Certification before being sold domestically or overseas. Stricter international standards and higher testing costs are also driving up manufacturing costs for suppliers," said the Report publisher, Spenser Au.
"Due to these higher costs, we expect consolidation in the industry with a number of small to medium manufacturers switching to other product lines or shutting down permanently."
Among surveyed suppliers' challenges for the next 12 months:
– 41 percent cited stricter overseas standards;
– 23 percent said price competition; and
– 18 percent indicated higher raw material costs.
The remaining 18 percent cited design copying / piracy and labor shortages.
Greater
Au said: "Due to higher operating costs, including raw material and labor costs, most manufacturers said they plan to raise prices in 2008."
Among respondents, 82 percent plan to increase prices, while 18 percent say they'll keep prices the same. However, more than half (58 percent) of respondents said they'll limit price hikes to 5 percent or less.
In-Factory Interviews, Price Forecasts and New Baby Toy Export Models
The 99-page China Sourcing Report: Baby Toys provides detailed profiles of 45 suppliers with verified manufacturing and export credentials. It includes a Product Gallery featuring 116 of the most popular export models, with key specifications and full-color pictures.
The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.
Specialized Global Sources Websites, Trade Shows, Magazines and Research Reports
China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online ( http://www.globalsources.com/ ), Global Sources trade magazines, Global Sources Direct ( http://www.globalsourcesdirect.com/ ) and the China Sourcing Fairs ( http://www.chinasourcingfair.com/ ). For more information, visit http://www.corporate.globalsources.com/ .
The
About Global Sources
Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business is facilitating trade from Greater China to the world, using a wide range of English-language media. The other business segments facilitate trade from the world to Greater China, and trade within
The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 657,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 230 countries.
The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on 2 million products and more than 170,000 suppliers annually through 14 online marketplaces, 13 monthly magazines, over 100 sourcing research reports and 10 specialized trade shows which run 32 times a year across nine cities.
Suppliers receive more than 27 million sales leads annually from buyers through Global Sources Online ( http://www.globalsources.com/ ) alone.
Global Sources has been facilitating global trade for 37 years. Global Sources' network covers more than 69 cities worldwide. In mainland
