We never see such a high-profile recall for toy business. It comes with huge quantity and wide aspect. U.S.’s recalls from June to September has brought in great impact on global toy market, as well as China’s toy manufacture.

If, I believe, Mattel had clarified the real reason for recall earlier, the tense atmosphere would have been eased up. If that, makers would not been misunderstood and Sino-US would not be come to such a tensity. Now, China’s image in toy business has been demolished severely. It can not be completely eliminated by a single apology of Thomas A. Debrowski, Mattel's executive vice president for world-wide operations.

Sudden popularity of those made in US

Certain comment says, recalls not only constitutes shock upon China’s toy manufacture, but also induces new changes in U.S. toy market.

1. Toys “made in US” sold briskly suddenly

Sales soars up to six times of previous one. According to AP, Maple Landark, a toy factory in Vermont gains five times achievement in direct sales, and overall business turnover grows by 70%. Toy factories in US can hardly fulfill all of their orders all though they work overtime.

2. Rising price in whole market

NPD, the famous research group in toy realm, shows its recent survey. It is found that, since the happening of recall and strict control on import of China’s toys, American consumers will have to face up with the severe result of 10 percent rise on price point next year. Analyst of NPD holds that, resolution on safety inspection on related product has again aroused as a focus after recalls. Toy Industry Association (TIA) is currently urge related department to approve a stricter motion on toy inspection. By this, toy makers are required to send their products for testing in independent quality inspection institute, which might increase production cost for toy makers in U.S.. At the same time, toy price will continue to go higher, since some toy makers would move some of their contract from China to U.S. or Europe, which will increase salary of employees.

However, I believe, recalls would not shake the key position of toys “made in China”. At present, there is some collection with the brisk sales of toys “made in US” and media coverage. Would it continue to take effect?

Some days earlier, Paul Beamish and Hari Bapuji, two Canadian professors deliver a survey report. It is said that, North America has seen 550 toy recall cases since 1988, but 76% results in design defect and only 10% can be ascribed to contractors’ manufacture. Therefore, if buyers can raise their design criterion, consumers would be at ease when shopping. Unfortunately, such coverage in U.S. is in the minority.

A majority of toy factories in Pearl River Delta is Hong Kong investment. The harbor city has engaged in the toy business for 60 years, which is experienced in production and sales and boasts large number of skilled workers. If this invaluable experience is moved to Europe or U.S., it would not be easy to compete with toys made in China. So we see no great possibility for “toy makers would move some of their contract from China to U.S. or Europe”.

But I agree with NPD on the analyses on U.S. toy price trend. Recalls bring in more and stricter inspection items upon product quality and safety, boosting related expense. Additionally, considering inflation, higher oil price, commodity price in mainland and insufficient power, if toy makers do not raise their quotation, they can hardly survive.

Ardent expectation on buyers

Recalling cases have aroused great concern of White House. Henry M. Paulson, Secretary of the Treasury, US, holds that, in view of safety misgiving result from lots of China’s products, the two countries must work together to find solution.

I can agree no more with his point on working tighter to find solution. Recalls lead to lost of both suppliers and buyers on economy and credit aspects. Neither of them expects to see similar affair. After Mattel’s recalling, China’s government lead toy makers to make various effort to improve toy quality—it is obvious to all. However, it would undoubtedly increase the expenditure on production and inspection facilities, quality inspection and staff training. In fact, rising price of raw materials, higher salary of workers and changing of labor law and export regulation have shrink profit margin. Makers might fail to expand their production if they have to pay more, or even run in a loss.

Therefore, I don’t think buyers should merely demand a low price, or force makers to assume all increased cost. Instead, buyers and makers should reinforce communication and share uprising cost. Price should be adjusted appropriately to improve product quality, so that consumers can buy Chinese toys with high quality and reasonable price. █

WRITER’S BIO