Global Recession hits toy factories in China
Sunday, October 19th, 2008 10:42PM CDT
Categories: Toy News, Company NewsPosted by: Bed Bugs Views: 8,410
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Toy factories in Pearl River Delta of Guangdong are feeling the pinch felt across the globe as spending by consumers declines. Many factories have shut down and unemployment is rising in the area. How does that affect us? Well, Transformers come from factories in that area.
Experts also believe more factories will be shutting down in the near future, thereby raising the price on toys. With fewer producers of toys in China, American companies will have to compete to keep the remaining Chinese factories producing their products.
The article goes on to talk about how companies have been cutting corners to satisfy the demand without raising the prices, which explains some of the shoddy paint work and quality issues regarding newer releases. Click here to read the full article.
Experts also believe more factories will be shutting down in the near future, thereby raising the price on toys. With fewer producers of toys in China, American companies will have to compete to keep the remaining Chinese factories producing their products.
The article goes on to talk about how companies have been cutting corners to satisfy the demand without raising the prices, which explains some of the shoddy paint work and quality issues regarding newer releases. Click here to read the full article.
Credit(s): Associated Press
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Re: Global Recession hits toy factories in China (817288)
Posted by Lapse Of Reason on October 19th, 2008 @ 10:50pm CDT
Posted by Lapse Of Reason on October 19th, 2008 @ 10:50pm CDT
When you think about it, $10 or so for a deluxe Transformer is cheap when you consider everything that goes into the figure from its inception to the store shelf. R&D, patents, cost of materials, labor, manufacturing, advertising, shipping, packaging, repairing global impacts from the whole process of consumerism, and profits all along the way. We are so used to inexpensive toys in the USA but good things never last forever.
Watch this to see what I am trying to say:
http://www.storyofstuff.com/index.html
Watch this to see what I am trying to say:
http://www.storyofstuff.com/index.html
Re: Global Recession hits toy factories in China (817295)
Posted by Soldier of Shockwave on October 19th, 2008 @ 10:55pm CDT
Posted by Soldier of Shockwave on October 19th, 2008 @ 10:55pm CDT
This makes me very nervous. I wonder how this will affect the December area releases? also, price jacking = 
Re: Global Recession hits toy factories in China (817312)
Posted by Bed Bugs on October 19th, 2008 @ 11:09pm CDT
Posted by Bed Bugs on October 19th, 2008 @ 11:09pm CDT
According to the article, Christmas shouldn't be affected too badly, but post-Christmas could get ugly.
Re: Global Recession hits toy factories in China (817314)
Posted by First Gen on October 19th, 2008 @ 11:14pm CDT
Posted by First Gen on October 19th, 2008 @ 11:14pm CDT
Price increases are inevitable. Theres nothing you can do to stop it.
So we pay 11.99 USD instead of 9.99 USD. Still way cheaper than our overseas bretheren are currently paying.
So we pay 11.99 USD instead of 9.99 USD. Still way cheaper than our overseas bretheren are currently paying.
Re: Global Recession hits toy factories in China (817325)
Posted by diosoth on October 19th, 2008 @ 11:38pm CDT
Posted by diosoth on October 19th, 2008 @ 11:38pm CDT
As worldwide oil reserves shrink, any novelty industry that relies on plastic will be the first thing to go, unless non-oil plastic alternatives are used more widely.
And it's starting to sound as if overseas factories simply CAN'T afford to operate at what US companies wish to pay.
And it's starting to sound as if overseas factories simply CAN'T afford to operate at what US companies wish to pay.
Re: Global Recession hits toy factories in China (817354)
Posted by Stormrider on October 20th, 2008 @ 1:36am CDT
Posted by Stormrider on October 20th, 2008 @ 1:36am CDT
I wonder if this article is also taking into consideration that several toy factories are moving out of China.
Re: Global Recession hits toy factories in China (817365)
Posted by City Commander on October 20th, 2008 @ 2:19am CDT
Posted by City Commander on October 20th, 2008 @ 2:19am CDT
Thankyou for making it clear First Gen. If prices get jacked up here again, I'll be quitting.
£13 (~$25) is a ridiculous price for deluxe figures.
I thought tfs were made in Vietnamese factories anyway?
£13 (~$25) is a ridiculous price for deluxe figures.
I thought tfs were made in Vietnamese factories anyway?
Re: Global Recession hits toy factories in China (817370)
Posted by Electron on October 20th, 2008 @ 2:57am CDT
Posted by Electron on October 20th, 2008 @ 2:57am CDT
(in the voice of the gay guy in family guy) "ooooooh noooooo!!!"
joking aside oooooooohhhhh noooooooo!!!
joking aside oooooooohhhhh noooooooo!!!
Re: Global Recession hits toy factories in China (817444)
Posted by GuyIncognito on October 20th, 2008 @ 8:30am CDT
Posted by GuyIncognito on October 20th, 2008 @ 8:30am CDT
I wasn't worried about the global state of the economy until now. Once my supply of Transformers becomes threatened, things are getting serious. Our nation must act now to ensure that the flow of Transformers is not interrupted.
Re: Global Recession hits toy factories in China (817488)
Posted by Valandar on October 20th, 2008 @ 10:32am CDT
Posted by Valandar on October 20th, 2008 @ 10:32am CDT
[DuneParody] The bots must FLOOOOWWWW! [/DuneParody]
Re: Global Recession hits toy factories in China (817550)
Posted by rpetras on October 20th, 2008 @ 12:42pm CDT
Posted by rpetras on October 20th, 2008 @ 12:42pm CDT
As long as we don't see a 50% rise right away like Marvel legends did, it shouldn't be too bad for the consumer.
Re: Global Recession hits toy factories in China (817571)
Posted by Cliff Jumper on October 20th, 2008 @ 1:05pm CDT
Posted by Cliff Jumper on October 20th, 2008 @ 1:05pm CDT
Here's an extraordinarily insane idea for Hasbro.. move your factories to the USA!!!!!!! I really wish they would.
Re: Global Recession hits toy factories in China (817620)
Posted by First Gen on October 20th, 2008 @ 1:45pm CDT
Then we'd be paying around $25.00 USD for a deluxe figure. Yeah, its crappy that jobs are outsourced, but really, we Americans ask for it with wanting the cheaper price.
Posted by First Gen on October 20th, 2008 @ 1:45pm CDT
Cliff Jumper wrote:Here's an extraordinarily insane idea for Hasbro.. move your factories to the USA!!!!!!! I really wish they would.
Then we'd be paying around $25.00 USD for a deluxe figure. Yeah, its crappy that jobs are outsourced, but really, we Americans ask for it with wanting the cheaper price.
Re: Global Recession hits toy factories in China (817643)
Posted by Bumblebeast on October 20th, 2008 @ 2:09pm CDT
Posted by Bumblebeast on October 20th, 2008 @ 2:09pm CDT
As oil prices increase, we will see new forms of plastic appearing. It's a matter of time before we have hemp transformers (that you could smoke) or soy transformers (that would be good for your heart). In any case, they would be tastier than polivinyl chlorides.
Re: Global Recession hits toy factories in China (817650)
Posted by Megatron Wolf on October 20th, 2008 @ 2:19pm CDT
Posted by Megatron Wolf on October 20th, 2008 @ 2:19pm CDT
Great another price hike. Its bad enough that stores on there own will just raise the price when they feel like (TRU) but now if this keeps up it wont matter. This is going to hurt every one. Price goes up people cant buy as much due to this the toy makers lose money and then due to this, theres not enough money in the company and people get fired. Thus screwing over every one. And i never thought id here a factory was shut down in china let alone this many.
Re: Global Recession hits toy factories in China (818278)
Posted by Zeds on October 20th, 2008 @ 10:04pm CDT
Posted by Zeds on October 20th, 2008 @ 10:04pm CDT
Speaks volumes about the problem about putting all your eggs in one basket. The world counts so much on China. She is truly the manufacturing plant of the planet. Time to spread the production around a bit. I had seen an old thread that Tomy was shifting production to Vietnam and other countries given the lead paint issues a few months ago. If this happened then maybe Hasbro could re-direct production there.
Re: Global Recession hits toy factories in China (818291)
Posted by diosoth on October 20th, 2008 @ 10:18pm CDT
Posted by diosoth on October 20th, 2008 @ 10:18pm CDT
China is going broke. Wonderful...
Count on factories moving, yes, but don't count on quality or safety concerns holding up. The US consumer won't pay double for such things.
Count on factories moving, yes, but don't count on quality or safety concerns holding up. The US consumer won't pay double for such things.
Re: Global Recession hits toy factories in China (818372)
Posted by Stormrider on October 21st, 2008 @ 1:14am CDT
Yup, TakaraTomy is moving its factories to either Vietnam or Thailand. I think it is a good move. The labor in both of the countries is very skilled and has been undervalued since the 1990 dot bubble burst.
Posted by Stormrider on October 21st, 2008 @ 1:14am CDT
Zeds wrote:Speaks volumes about the problem about putting all your eggs in one basket. The world counts so much on China. She is truly the manufacturing plant of the planet. Time to spread the production around a bit. I had seen an old thread that Tomy was shifting production to Vietnam and other countries given the lead paint issues a few months ago. If this happened then maybe Hasbro could re-direct production there.
Yup, TakaraTomy is moving its factories to either Vietnam or Thailand. I think it is a good move. The labor in both of the countries is very skilled and has been undervalued since the 1990 dot bubble burst.
