Europe'S Most Stringent Toy Law Costs Shenzhen Toys Enterprises By 30%

At the end of June, Dongguan toy enterprise "Su Yi" and textile enterprises "Ding Jia" suddenly collapsed, and the cold wave of manufacturing industry spread again.

Meanwhile,

In July 20th, the EU's new toy safety directive was officially implemented as the most stringent toy safety technology regulation in the world.

The implementation of this directive will undoubtedly add to the worsening situation of Chinese toy enterprises.

New regulation will increase enterprise cost

From July 21st

It is understood that in June 30, 2009, the European Union official gazette (OJEU) published a new toy safety directive "2009/48/EC", the new directive set a two-year pition period, that is, products that meet the requirements of the old directive can still be sold before July 20, 2011.

For chemical requirements, the pition period is 4 years, that is, products that conform to the old instructions can continue to be sold by July 20, 2013.

In response, some people in the industry said that in order to meet the requirements of the new directive on toy safety in the EU, domestic toy manufacturers must adopt new materials and technologies, and at the same time introduce more sophisticated testing equipment, which will lead to a substantial increase in production costs.

Shenzhen has a large toy industry group, and toy exports account for about 40% of the country's total toy industry.

The European Union is the most important export market for Shenzhen toys. In 2010, the value of Shenzhen toys in Europe was $279 million.

The new safety directive will undoubtedly bring great pressure to the toy industry in Shenzhen.

Experts from the Shenzhen toy industry association predict that the new directive will increase the manufacturing cost of Shenzhen toy products by more than 30%.

The increase in costs has made many Shenzhen enterprises feel pressure and the confidence in exporting to the EU market is declining.

The rise of export toy inspection fees will form a certain pressure on the current operating costs of enterprises, resulting in a decline in the share of the EU market.

In addition, the implementation of safety directives has increased the threshold for export, or substantially reduced the export rate of domestic enterprises, which has created tremendous pressure on the market sales situation of domestic SMEs.

Industry faces reshuffle

In addition to the increase in toy companies' costs, the market risk of toys exported to the EU is also increasing.

In fact, China's toy exports have been on a downward trend since September 2008. Although exports have improved since then, they still can not return to pre crisis levels.

In recent years, the export situation of domestic toy enterprises to the EU market has been faced with a greater threat.

According to incomplete statistics, about 80% of the EU's toys are imported from China.

With the implementation date of the new security directive approaching, since June this year, Chinese toys have been recalled by the United States and the European Union.

Bulgaria, Holland, Slovakia and Spain have also issued a sales ban on toys made in China.

Affected by the price of raw materials, labor costs and the appreciation of the renminbi, the profits of coastal export toy processing enterprises have been gradually reduced, and the market environment of the industry has further deteriorated.

The EU's new toy safety directive is undoubtedly a big burden for domestic toy companies.

The European Union's toy directive has a greater impact on small and medium-sized enterprises.

"For small and medium-sized enterprises with relatively large exports, the fierce competition in the domestic market and the high cost investment in the export market are all the difficulties faced by the enterprises, which will lead to large-scale adjustment of the industry.