Besides the rapid appreciation of RMB, inflation and the weak markets, European and American countries raised the safety criterion of toys products in succession, which would have a great impact on the Chinese toys exporting industry.
In last month, EU carried out the strictest toys rule ever, European Union: New Toy Safety Rules. After that, from August 14th, America began to carry out the new rules on the safety of the children products. In the new rules of America, the lead content upper limit declined to a great extent from 300ppm to 100ppm. In addition, the new rules raised higher and more refined requirements on the material purchase, technological design, production flow, storage and management to the toys producers.
The number of Chinese exported toys takes up about 70 percent of the whole world’s toys exporting number.
Last year, there were more than 7 thousand toys exporting companies in China and European and American countries are the most important markets of the toys made in China. At the same time, the price of domestic raw materials has been increasing and the advantage of Chinese low cost labor decreases progressively. Plus the rapid appreciation of RMB, many small and medium sized Chinese toys companies in Jiangsu and Zhejiang province, Delta regions of Pearl River have closed their toys business.
A manger in a toys company complained to the reporters that the new safety standard rules in European and American countries directly increased the producing costs and the cost of product testing. Therefore, the profit of the toys producing and exporting decreased dramatically.
However, some market observers pointed out that the challenges of the new rules could also be an opportunity for Chinese toys producers and exporters, which would force the producers of toys to make the transition or upgrade their producing ability. At the same time, it may be a good turning point for large Chinese toys producers to exploit the overseas markets. Meanwhile, small and medium sized toys producers may bear large impact from the new rules.
Favorable prices and the low cost of labors may not always work well. As of Chinese toys producers, it is important now for them to build their own brands and reputation. Everything has two sides. While facing the pressures from the markets, it is a good chance for Chinese toys producers to upgrade themselves.