Wednesday, January 16, 2008

Product Problems


THE annual Hong Kong toy fair is one of the shop windows in which China has displayed its growing industrial prowess over the years. Starting from almost nothing 30 years ago, an expanding array of anonymous factories across southern China has used the show to display inexpensive (if not particularly innovative) toys to buyers more interested in low cost than high quality. The result has been a steadily expanding global market-share, now over 60%. But at this year's fair, which opened on January 7th, there were signs that the fun is over. Costs are rising fast and a series of product recalls, one of which prompted the boss of a toymaking firm to commit suicide, meant the mood at this year's show was very different.




At this year's Chinese toy fair, the atmosphere was very different than in past years. China's dominant toymaking industry hit a snag last year when toys were recalled for health and safety issues. Many verification and testing labs were popular at this year's toy fair due to the recalls from last year.

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