According the US Commerce Department, 9 out of every 10 toys bought in the US are now made abroad, with China manufacturing accounting for a majority of these imports. Some of the largest toy companies in America, including Mattel and Hasbro, source their toys from China. Globally, China commands about 75% of the global toy export market, worth nearly $30 billion. The vast majority of China’s export toys are manufactured by OEMs, according to HKTDC Research. As such, most of the biggest toy brands in the world have a presence in China. For instance, the Danish-based LEGO Group has a 165,000m2 state-of-the-art factory in Jiaxing, China, which it opened in November 2016.
For US toy manufacturers experiencing process stumbling blocks and other challenges, or for those with an innovative toy product, but are new to manufacturing, considering moving manufacturing to China could be a wise choice. Some of the benefits of manufacturing toys in China include:
The potential growth of China’s toy market has created intense competition in terms of innovation and cost within several market segments. Traditionally, foreign brands such as Lego, Nerf, Mattel and Hasbro dominated the high-end market segment whereas local brands dominated the lower and middle segments. Interactive electronic toys have been going strong for several years now and show no signs of slowing down. Meanwhile, toys that are both educational and interactive are particularly popular among parents. Plush toys, especially the ones that depict cartoon characters from Japan and the US, are popular among both adults and children of all ages.
Some Issues with China Manufacturing
A majority of US toy manufacturers already know the Chinese toy manufacturing industry has had its fair share scandals in the past. One example, in 2009, Mattel had to remove nearly 20 million China-made toys from its stores due to high levels of lead. Unfortunately, the fact remains that not all toy manufacturers in China, or from many other countries, will always adhere to good manufacturing practices. For this reason, many US-based companies considering overseas manufacturing must take necessary precautions when outsourcing their toy production. Of course, choosing the right Chinese manufacturer can be difficult, especially if you are unfamiliar with the Chinese toy industry.
With more than four decades of experience in product outsourcing for American companies ITI Manufacturing can ensure your toys are manufactured by certified Chinese manufacturers and tested by trusted, world-wide recognized testing labs. Also important is the fact that ITI Manufacturing reviews and supervises the production of your toy during the China manufacturing process. To deliver on our no manufacturing defects guarantee, our professional, full-time China staff continuously visits the factory floor to ensure the quality of each unit from start to finish.
To learn if China manufacturing is truly the right move for you and your company, or if your company is currently experiencing manufacturing challenges domestically or in China, you can connect with one of our experts today. See how ITI Manufacturing can help meet your production and supply chain needs. Call 888-574-6823, or complete our quick online China manufacturing form.