China toy makers raise prices due to stricter standards

Due largely to the cost of compliance with stricter overseas and domestic regulations, many small to medium baby toy manufacturers are expected to switch to other product lines or to cease operations altogether.

This is according to Global Sources' China Sourcing Report: Baby Toys.

Report publisher, Spenser Au, said: ‘Since last year, a range of mainland China-made toys, including baby toys, must obtain the China Compulsory Certification before being sold domestically or overseas. Stricter international standards and higher testing costs are also driving up manufacturing costs for suppliers.’

‘Due to these higher costs, we expect consolidation in the industry with a number of small to medium manufacturers switching to other product lines or shutting down permanently.’

Among surveyed suppliers' challenges for the next 12 months:

-- 41 % cited stricter overseas standards;

“Due to higher operating costs, including raw material and labor costs, most manufacturers said they plan to raise prices in 2008.

Report publisher, Spenser Au

-- 23 % said price competition; and

-- 18 % indicated higher raw material costs.

The remaining 18 % cited design copying / piracy and labor shortages.

Greater China baby toy suppliers expect to raise prices in '08

Au said: "Due to higher operating costs, including raw material and labor costs, most manufacturers said they plan to raise prices in 2008."