Toysmax, located at the well-known motherland of toys- ChengHai Shantou, it is one of the most professional
manufacturer and a reliable toy supplierwho attach great importance to quality.
Some toy manufacturers are optimistic and believe that making toys is no longer a simple toy, but quality, fun and service. The survival of the fittest will also bring further reshuffle of the toy industry behind the competition. Manufacturers with low added value and poor risk resistance will be eliminated.
The farthest distance in the world is not between life and death, but when you slashed prices on Double Eleven, and turned around and issued a price increase statement-'The company has decided to start from December. The products will be increased by 8% on the original basis. The prices shipped in November will be the same as the original prices.” This notice from a toy factory in Shantou also revealed the reason for the price increase, saying that raw materials have soared by 30% since October, and cartons have increased by 15%, 15% for blister, 15% for color boxes, and price increases for hardware, transportation, motors, and electrical panels to varying degrees.
The increase in the price of raw materials has a wide impact on the toy industry. Take rubber and plastic, the main material of toys, as an example. According to the price monitoring of the business agency, the price of bulk commodities in October 2016 There are 20 kinds of products in the rubber and plastics sector that have risen month-on-month in the ups and downs, of which 13 products have increased by more than 5%, accounting for 59.1% of the number of monitored products in this sector. Among them, the commonly used toy materials PS, ABS, PC, and PP increased by 8.23%, 27.22%, 15.46%, and 18.76% respectively year-on-year.
October 2016 rubber and plastic bulk commodity price rise and fall list (source: Business Club)
In addition to the increase in raw materials, the new version of Since the implementation of the “Provisions on the Administration of Transportation Vehicles on Highways” and the “Special Action Plan for the Regulation of Illegal and Overloading Behaviors of Highway Trucks” on September 21, they have also brought an increase in logistics costs to the toy industry. It is understood that the revised penalty standards stipulate that every time a vehicle is found to be overloaded, the vehicle shall be subject to “one overtaking and four penalties” (the owner, the driver, the freight company, the loading company or the place). The maximum fine for 1 ton is 500 yuan, which is several times higher than the original standard. Due to the increase in illegal costs, drivers dare not continue to overload.
Pictures of trucks (pictures come from the Internet)
The most stringent control over orders (pictures come from the Internet)
In recent years, the profit level of the domestic toy industry has been declining due to factors such as the appreciation of the renminbi, rising employee wages and raw material prices, and rising export thresholds. If there is no increase in prices and internal digestion, companies will be unable to bear the pressure of costs, and the increase is worried about scaring off dealers and consumers. Dare to raise prices, do not want to raise prices but have to raise prices to cope with rising costs, some toy manufacturers have no choice but to 'be raised' to protect themselves.
The production workshop of a toy factory in Guangdong (Photo of Sino-foreign Toys.com)
There are also toy manufacturers who are optimistic about this, thinking that making toys is no longer Simply make toys, but make quality, fun and service. The survival of the fittest will also bring further reshuffle of the toy industry behind the competition. Manufacturers with low added value and poor risk resistance will be eliminated.
In the current domestic market, toys are still a non-essential product. Industry insiders suggest that toy manufacturers should gradually adjust their business ideas, transition from a 'price war' to a 'brand warBuilding independent brands, increasing the added value of products, realizing product differentiation, and giving full play to the brand effect are a powerful guarantee for toy companies to improve their competitiveness.