Toy Marketing In China Is Facing Severe Christmas Day

In the early December, the toys hot selling situation for traditional Christmas is mainly at the end. In the past several years, toys manufacturers and retailers would get lots of profits during this phase. However, the situation in this year is not very good. Under the condition that higher cost on raw materials and labor, bad economic environment in the whole world, toys manufacturers in China are facing severe situation. Finally, many manufacturers decide to put their marketing centre from the previous U.S. and European markets to domestic market or new market in other countries.

When having an interview with one toys company manager, he said the gross profit of each toys order had little changed, however, the total number of orders was declined by 30 percent, after minus all the cost including raw materials and labor, the profit was decreased by more than 30 percent. As for the main reason, severe economic status in the European and the U.S lead to the overall decline. On the other hands, the total cost was increasing. For example, the workers’ salary was increased by 30 percent.

When facing the bad marketing environment, all the toys companies try their best to get more profit. For example, some of them decide to develop the Japanese toys market in the next year while the other would continue to develop the domestic market. In general, they begin to open more and more toys stores in big cities such as Beijing, Shanghai, Chengdu, Shenzhen and other. In addition, some toys manufacturers begin to put their design emphasis on baby toys because it has better business opportunity than kids’ toys according to the marketing analysis.

In addition to the domestic market, develop new and developing toys market is another wise way to adjust the direction of corporate strategy. According to related toys designer, lots of toys companies have planned to develop new toys marketing in Brazil, Russia, the Middle East, India and other. For example, set up agency in Dubai, Middle East, to contact local toys business companies and collect important information on popular elements in Middle East toys markets.

Recently, several large toys sellers in Japan have come to toys factories in China to inspect, which means that it is a great business opportunity. What have to put forward is that the time of ordering toys from foreign countries brings forward because lots of toys manufacturers are closed under such bad economic environment and only a few still have the power to manufacture toys.

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