Most of our children’s furnishings, kid products, educational items, assorted toys, and even maternity clothes have one thing in common- they’re Made in China. The “Made in China” label is common to the point that it seems China has become the “New North Pole”. There are more reasons why so many children’s items are manufactured in China. Low labor costs are the most well-known, but there are more factors that figure into the equation. There are several reasons why so many US companies, as well as companies around the world, choose to have their toys and child-based products made in China.
Poised for Continued Growth
China is the world’s largest toy producer and exporter. As such China is developing a nationwide traceability system designed to verify the safety and quality of all products. It is estimated that approximately 80% of all toys produced worldwide are made in China. Most toys manufactured for export are produced to company’s OEM standards. Toys manufactured for the Chinese market can be classified broadly from electronic, technical and educational toys, to traditional plastics and wooden toys. The China toy manufacturing trend is projected to continue to rise.1 The demand for toys for China’s children and families continues to increase as does China manufacturing of toys for export. In fact, according to custom’s data, China’s toy exports increased 24.9 percent year on year in 2016.2
The most well-known reason for China being the go-to country for economical manufacturing is low labor costs. China is the most populous country on Earth, and home to over 1.3 billion people. Due to this considerable number of laborers, wages have remained relatively low over the years. China’s huge labor pool helps the country’s factories produce bulk products, meet clients’ seasonal requirements, and successfully satisfies sudden increases in demand. This factor has remained a major benefit to US companies.
The Corporate Ecosystem
China manufacturing does not happen in isolation. China manufacturing relies heavily on supplier and manufacturer networks, government agencies, distributors, and customers. For instance, Shenzhen has turned into a focal point for the juvenile electronics industry because it has cultivated an ecosystem that includes low-wage laborers, skilled workers, component manufacturers, and assembly providers.
Western manufacturers must comply with child labor guidelines, health and safety regulations, hour and wage rules, and environmental protection mandates. Strict compliance was not a priority in the past, however today’s Made in China factories are following these guidelines closely.
Some experts have wondered if China was beginning to lose its position as the manufacturing capital of the world; yet, data shows that this is not the case. Granted a large, relatively inexpensive labor is certainly a factor, China is a major manufacturing hub for other reasons. Add to the labor advantage low production costs, a deep and wide base of skilled workers, and a solid ecosystem supporting the manufacturing and logistics requirements, China is poised to remain the world’s toy factory for many years to come.
Choose the Right Manufacturing Partner
ITI Manufacturing is your professional China manufacturing partner with 43 years of experience in successful product outsourcing for US companies. We manage the production and supply chain logistics of our client’s “Made in China” products. We manage the complete process and are responsible for the goods until our client takes possession at the destination of their choice. Our no manufacturing defects guarantee helps clients focus more on their core business and worry less about product quality.
ITI Manufacturing is deeply rooted in China’s toy manufacturing industry. We are excited to be exhibiting at the upcoming ABC Kid’s Expo in Las Vegas October 17th – 20th. Come by our booth, #4317. Prior to the show you can contact Mike Stewart at 281.242.3030 x 18 or email- [email protected]. During the Expo, Mike can be reached at 855-912-7758.
- Wong, B. (2017, Sept. 11) “China’s Toy Market” HKTDC Research Data [Research Data] Retrieved from: http://china-trade-research.hktdc.com/business-news/article/China-Consumer-Market/China-s-Toy-Market/ccm/en/1/1X000000/1X002MRF.htm
- Xinhua; (2017, Feb 27) “Made-in-China Toys to Have Complete Track Records” [Blog Post] Retrieved from: http://www.chinadaily.com.cn/china/2017-02/27/content_28366649.htm