Toy makers target China as new market
Tuesday, 30 October 2007
SHANGHAI, Oct 29 (AP): For 24 years, toy maker Yoshiritsu has resisted the pull to move to lower-cost China, sticking it out in more costly Japan to meet the exacting demands of its picky customers.
But that strategy may be starting to pay off in a new market: China itself.
"We came to see what the market is like," said Hideyuki Noguchi, sales manager for Yoshiritsu, while demonstrating his LaQ brand blocks at the recent Shanghai Toy Fair. "So far, the reaction is good," he said, citing a number of inquiries. It was the company's first time at the annual fair, where foreign companies were looking to sell license rights or products to the booming Chinese market.
China's reputation as the world's toy workshop - it handles 60 per cent of global toy manufacturing - has taken a battering amid recent recalls. So far, the uproar has had little impact on toy exports, which are up 28 per cent in the first eight months of the year compared with the same period in 2006, according to Chinese government figures.
Brands like LaQ can't compete with Chinese factories on price, Noguchi admits.
But toy makers like Yoshiritsu and others are finding that the greater focus on improving standards offers them greater hope of making inroads into this still undeveloped market. The closer international and domestic scrutiny means that retailers and consumers are more willing to pay a bit more for better quality, those working in the industry say.
"Our products are 100 per cent made by us in Japan," Noguchi said. "We have to use top quality materials ... and still customers are pushing us to improve quality."
But that strategy may be starting to pay off in a new market: China itself.
"We came to see what the market is like," said Hideyuki Noguchi, sales manager for Yoshiritsu, while demonstrating his LaQ brand blocks at the recent Shanghai Toy Fair. "So far, the reaction is good," he said, citing a number of inquiries. It was the company's first time at the annual fair, where foreign companies were looking to sell license rights or products to the booming Chinese market.
China's reputation as the world's toy workshop - it handles 60 per cent of global toy manufacturing - has taken a battering amid recent recalls. So far, the uproar has had little impact on toy exports, which are up 28 per cent in the first eight months of the year compared with the same period in 2006, according to Chinese government figures.
Brands like LaQ can't compete with Chinese factories on price, Noguchi admits.
But toy makers like Yoshiritsu and others are finding that the greater focus on improving standards offers them greater hope of making inroads into this still undeveloped market. The closer international and domestic scrutiny means that retailers and consumers are more willing to pay a bit more for better quality, those working in the industry say.
"Our products are 100 per cent made by us in Japan," Noguchi said. "We have to use top quality materials ... and still customers are pushing us to improve quality."