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New Trend of Yunhe’s Backbone Business
Author: TOY INDUSTRY  Post Date: 2008-01-30

      With the theme of landscape, hometown and fairyland, the third session of China Wooden Toys Festival was held on November 1st in Yunhe, Zhejiang. Rich cultural and folk-custom appeal of the “oriental wonderland”, which enjoys good reputation in outside world, has deeply impressed participators come at home and abroad. Development of the wooden toy industrial base is then witnessed by all.

      Opening ceremony, firework evening, toy show, summit forum, toy competition… a dozen of events cheer people during the 3-day Toy Festival, which has become a big time that promotes local economic growth.

     “This session of China Wooden Toys Festival is a large scale of party coming with extensive participators and abundant content,” said Liao Sihong, secretary of county Party committee at opening ceremony, “it would play an active role on boosting industrial cooperation and communicating, as well as all-round development. At the same time, it offers a new challenge for Yunhe to accelerate on the course of constructing ’advanced manufacture for China’s toy industry’.”

      It is found that, China Wooden Toys Festival reflects the latest trend of this backbone business of Yunhe.

Trend 1

     Focusing on brand

     Situated in Lishui, Zhejiang, Yunhe has a population of 110,900. Wooden toys are traditional business for the county, which houses more than 600 makers now, producing an annual output value at ¥1.5 billion. Same as Guangdong and other regions, toy production here mainly pursue the way of OEM.

     This session opens in an eventful period, coming with higher cost on labor and raw materials, upvaluation of RMB, adjusted policy on tax reimbursement for export, as well as frequent recalls due to excessive lead contain on paint. Though amount involved in recalls appear in a tiny minority compared with the huge industry, it has imposed wide influence against local market. On the other hand, special rectification on exported toy and quality license system on toy export, first-item appraisal system are launched in view of quality and safety supervision. Stricter inspection standard on toy export has driven up product cost.

     “It is a new age of historical development now, and a millstone,” says Ma Dawei, general manager of Jinma Arts and Crafts Co., Ltd. He believes that, after 30 years of development, Yunhe’s wooden toy industry should ascend to a new stage. Fostering original brand is a topic for all enterprises when they grow to certain level. Brand strategy is a pressing task for young generation.

      In Yunhe, it can be found lots of original brands are now gaining respective market shares stably, such as Muwan Family, Benho, Yaoyao Horse, Tutu Dog and Jinertai. up-and-coming Yunhe makers are gradually moving from “making” to “creating”, from “OEM” to “brand”.

      Toy show scheduled during the Toys Festival is the best opportunity to demonstrate products and create brand image. Totally 176 booths are set in various characteristics. Players dressing like characters of the animation programmed by Banqiu Industrial Corp., Ltd and Duomi Qicai Animation and Comics Co., Ltd are attractive to visitors in the hall. The Olympic Games series of Hexin’s Muwan Family line become a great highlight in the show. In fact, only Muwan Family has covered exceeding 300 styles of toys. All toy makers are demonstrating their elaborate works.

      Liao Fuxin, president of Yunhe Toy Association says amusedly that, toy festival gains year-on-year progress. Concerning this session, he reviews two traits—it is full of local elements, and enterprises show great enthusiasm to the grand event. Comparing with only 30 per cent of companies that joined in the first session, this year sees a high percentage of 90%. An owner also notes that, if it were not for the recalling, more companies would joint the enjoyment.

 

Trend 2

     Boosting domestic demand

     We see two fresh functions held this year, which are supported by Hexin Toys and Nature Teaching Toy.

      Firstly, a forum on Chinese preschool education and toy development is held. Scholars from universities and college delivered their elucidation and analyses on the relation with game, toys and children’s development, offering pattern of toys and function application, as well as toy selection and use.

      Secondly, a wooden toy competition welcomes 13 teams composed by primary scholars, university students, professors and designers, who take a race on three programs—bionic puzzles, football puzzles and wooden toys dinner.

     Though the two come in different patterns, they have the same appeal—boosting domestic demand and cultivating market. It makes people more familiar with function of toys and their benefit on kids’ intelligence and handwork. Pursuing export all along, Yunhe now retune itself towards huge domestic sales market.

      In October this year, a union of domestic sales companies has been established to carve out a new phase in domestic China within a short time, using preschool education as a breakthrough.

 

Trend 3

     United force

     The beginning day of Toys Festival, is exactly the day when new site of Wooden Men Youth Club of Yunhe stars using. By this occasion, journalists from TOY INDUSTRY pay a visit in spirits, along with Ben Ho, the secretary-general of the Club, as well as general manager of Hexin.

 

     Fujinyuan Plaza, located in the transportation centrum of Yunhe, is the meeting site for the Club. Actually, the first floor of the plaza sees a brand new specialty store of Hexin’s Muwan Family brand. Wooden Men Youth Club is at its second floor.

     In elegant decoration and reasonable design, the Club has arranged separate rooms for meeting, conference, game, gym and bathing. It is a good resort for business negotiation as well as entertainment.

     It is said that, the Club covers 200 square meters, which is invested with over ¥200,000 on fitment and appliance. And the monthly rent for it is ¥6,000. Nine founders and several administrative directors share the expense. More than 50 members can enjoy all facilities and service here. This harmonious family is becoming a center of activity, business and information for young enterprisers in Yunhe toy industry.

     Tang Keyin, president of the Club believes that, the Club is a team comprising members with respective traits. By the unity, members are able to communicate shares information with each other. Furthermore, cut-throat competition would be reduced and cost for purchasing can also be lowered. United marketing is also possible.

     These young enterprisers have gained preliminary benefits. They have clear recognition that, they are responsible for the brand construction. Determining a target of integrating and sharing resources, they are to realize a new round of growth for local toy business with collective power and collective brand.

      A beautiful blueprint is on the draft now. Such a Club has active meaning in Yunhe, as well as other production clusters in China. █

 
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