Bigger and better

It is well known that China is the largest producer and exporter of toys in the world. At present, there are more than 8,000 companies manufacturing toys in China, an industry that employs more than 3.5 million here. More than 30,000 different toys are made in China and are sold in more than 100 countries and territories. In every corner of the whole world it is almost always possible to see a toy stamped “Made in China.” And the numbers bear that out: customs statistics state that China's toy exports in 2005 totalled approximately US$15.2 billion, an increase of nearly 27 percent from 2004.

Direct trade business was one of the key factors contributing to the prominent increase in China's toy exports in 2005. Direct trade business means that the Chinese toy manufacturers have direct connection with the international toy market, eliminating intermediary trading companies. Direct connection allows manufacturers to have updated information on the demands of the market and to be able to respond to the market more rapidly. Now more than 3,000 export-oriented manufacturers in China are doing business directly with international buyers. They actively participate in trade fairs worldwide and in global sourcing Web sites to establish even greater connections with the international toy business.

Another factor contributing to the continuous growth in Chinese toy exports in recent years is the increasing quality of the products produced. Being the biggest toy exporter in the world, the essential obligation of Chinese toy manufacturers is to meet or exceed the requirements of the countries that are their toys' final destinations. As the toy industry has grown over recent years, export-oriented enterprises have made concerted efforts to improve quality control so as to meet those standards. Such cooperation with western countries in toy production has educated the industry about quality improvement. Now many Chinese export manufacturers have been certified by the major international business standards groups that monitor quality management and workplace standards. Meanwhile, on a social level, some toy makers are actively applying for Code of Business Practices certification formulated by the International Council of Toy Industries (ICTI). The code is aimed at ensuring safe work environments and reasonable work hours. So far, more than 300 Chinese toy exporters have obtained the certificates.

Among trends within the Chinese toy industry is a greater focus on product design. The Chinese toy industry developed out of OEM production for others, but the situation has changed gradually over the past years to the point where now many key enterprises perceive the increased demands of importing countries and have begun to apply computer-aided design and production to their services. Some Chinese-made products now have registered intellectual property rights at home and abroad. The China Toy Association, under the authority of the Ministry of Labour and Social Security, is implementing the certification of trained toy designers in order to further improve the country's product design skills.

Toy production is spread across mainland China, but more than 95 percent of toy production is located in six provinces: Shanghai, Jiangsu, Zhejiang, Guangdong, Shandong and Fujian. Some areas are known for specific specialties: Shanghai, the business capital of China, is famous for baby carriers and plush toys; Zhejiang is known for wooden toys (as well as plush and baby carriers); Jiangsu produces plastic toys (plus plush and baby carriers, as well). Several of the regions are near each other. Zhejiang and Jiangsu are very close to Shanghai—Shangdong is nearby as well—which makes it convenient for international visitors to review the main production regions and contact the leading manufacturers for certain product categories in a single business trip.

When it comes to trade shows, the China Toy Association continues to organize the Shanghai Toy Expo (STE), a fair for toys, hobby and baby articles held annually since 2002 in cooperation with Germany's Spielwarenmesse eG. This year's Expo, held October 18-20, will be housed at a new, larger venue, the Shanghai International Expo Centre, in response to demand for more exhibit space.

STE has established its market position as an event for searching out new products and suppliers, and as a trading and contact platform for import- and export-oriented businesses. In addition to national exhibitors from the various regions of China, international exhibitors at this year's expo will showcase products from countries such as Germany, Hong Kong, Spain and Italy.

Last year, 15,400 visitors from 54 countries and territories, in addition to local visitors from across China, attended the event. This month, buyers will find everything in one place at the expo: from plush to plastic toys, and manufacturers from Shanghai to Shandong.