The close down of toy magnate He Jun will lead to industry panic.Industry data show，the 80% world toys are made in China，the 70% China toys are made in Guang Dong.He Jun company gose bankrupt both with its own internal business business failures,but also the external macro-economic downturn. And its collapse lead people to think:rely on the OEM production of Dongguan toy industry whether reach the time " adversity led to prosperity"?During the trend of closure, As another major Guangdong toy production base--Chenghai also began to think about their own way out.  

  Dongguan Chenghai two bases have theri own way of development,because the two different paths of development,industry、experts and the government have differren viw.

    Chenghai

    Situation 1   15 scale operation  enter the era of small profits  "3 years ago,if your molds doing successful,a product can sell 20 million yuan".Yesterday morning,in Shantou Chenghai Exhibition Center 4th floor,when interviewed Cai jie Chen-the secretary of Chenghai Toy Industry Association,he described the best days of Chenghai toy industry.   

 "Since 2006,toy companies become difficult to run."Caijie Chen said，raw material prices rais、the technical barriers to trade and labor costs and other factors come together.

    "5 years ago,our product sales profits an average of 15% or more,but last year and this year is 5% to 6%.Just lately two months,labor costs increased 20 percent or above than before.Yesterday,a medium-sized production and trade enterprises locate in Guangyi Street,Chenghai District,its general manager Lin tole reporter.This is a family business established 10 years ago，the products are mainly exported to European and American markets,the factory has more than 400 employees.Everything still looks so perfect in a few months ago.Mr.Lin is also planning to construct a new plant twice over than the current.But the reduced the number of overseas orders in lately two months he can not consider more. "Anyway,go through this time firstly".

    The industry personage tells the reporter，in the most profitable times,some enterprise product of Chenghai///////////////////////////////////////////////////////'s profit can reach 30%,and it is generally down to 10% now.

    Crisis 2   end up to a large number of expansion devices        later response to crisis

    One of the three major professional toy fair-Chenghai Toy Fair(International) has been held for ten years.Comparing the 2007,April 2008 Chenghai Toy Fair play biggest change in  reduce booth of injection molding machines,mixers and other machinery and equipment.In the opinion of Caijie Chen，Chenghai toys put an end to expan a lot of equipment. A management of Chenghai toys enterprise told the reporter,"There is few people open toy company in recent years."

    Mr.Lin calculated an account to reporter."Raw material prices rising in August and September that the enterprise did not make much money;The raw material prices decline in October,but the order less twice over than befor,the enterprise also make any money. To know,as for the manufactures,the annual July,August ,September and October are the peak season for sales.

    Yesterday afternoon,the bureau of foreign trade of Chenghai District convened a global meeting,people at the meeting think:"There are some enterprise are still not ready to prepare to respond to crisis." 

 Own brand 3 develop local brand   although difficult  more benefits

   Chenhai toy companies,which mostly in the local soil development and growth of samll and mudium priviat enterprise.The chairman of Guangdong Toy Industry Association Cui Xingxiang said"When the other areas still stay a simple processing trad,Chenghai toy industry has formed a number of local brands by independent innovation."

    "A child on the street to buy a small elastic ball,although do not know the brand,know to buy the two stars.(a well-known toy brands of Chenghai)."A photographer of Chenghai tole reporters,although a same small toy,"Chenghai made"sold on the street has been opened the price and quality. 

   The toy enterprise own the first intellectual property ownership of domestic companies also in Chenghai,total application 991 items for domestic patents currently,66 item foreign patents,domestic and international trademark application were 440 and 136 item.

   The specialized agencies of  "shantou Chenghai toys & gifts international brand development center" set up in Chenghai Commerce and Industry Bureau.The leader Zhangze Wei told reporter,"Chenghai toys"collective mark application has been subitted to the State unionistration Trdemark Office.

    The benefits of have own brand is very obvious in export markets today.Mr.Chen a  general manger of a toy company told the reporters,his company has its own bradn 3 years ago,despite the order reduce in Europe and America market currently,but he is to find ways to develop the domestic market.

Dong guan

stiuation 1  Toys-off"threshold of life and death" 

    Dongguan toy industry flourished in the 90///////////////////////////////////////////////////////'s.90 percent business is the processing form.When developed to its heyday about 2001,Dongguan has more than 4000 toy factory,and about 2000 downstream firms.However,the spectaular has been gone.The mgeneral manager of Dongguan hayidai toy factory-Xiao shen Lin told the reporter"This two years is the "threshold of life and death"of Dongguan toy industry.

    According to industry analysts,80 percent toy company is a private enterprise in Dongguan.This enterprise are to cut and sownsizing to maintain theri operations.Less than 10 percent enterprise maintain the same basic scale,they are essentially foreign or multinational subsidiary.

    Crisis2  Some enterprise cut   Dongguan advantage gradually fade 

  Industry insider say than the toy company still operating in Guangdong are basically divided into two types,one is cuts and downsizing to maintain manage;Another is the basic maintenance of enterprise scale,but these companies are basically foreign companies or subsidiaries of multinational corporations.

    Toy manufacturers Xiao Shen Lin think that his overall business costs rose 20% to 25%."The cost rising and the U.S. distributor refuse to raise toy prices,at a result of the enterprise profit tightening again,seriously affected the confidence of export,even the survival."Now,some distributor only promised to raise up to 10% of the price,the remaining 10% to 15% of the costs must charged by business themselves.

    A responsible person of a large plastic toy manufacturers in Shipai Town say that the plastic price increase 30%to 40% this year and the plastic can occupy nearly in a toy///////////////////////////////////////////////////////'s total cost 60%~70% proportions.But the producer does not dare to raise the product price as the raw material easily.

    Toy business is labor-intensive enterprise,sometimes the customer order are few,only several thousand,tens of thousand toys,varieties,quantity are few,is unable to design a specially production line .Foreign companies is not willing to spend the high cost to transfer production in Chian,because these toys are not worth investing. 

     Toy producer Mr.Zhang told the reporter ,initially they came to Dongguan has settled on the Dongguan necessary enterprise and the industrial chain as well as the conveninent transportation.But now ,with the improvement of traffic conditions in other parts,as well as local government introduced preferential policies to attract investment ,the advantage is gradually diluted in Dongguan.

   Own brand 3  Reduce oem manufacturing  Fought in the domestic market

    Sharp drop in export in volume growth of toy companies,individual bussiness failures,also some corporate re-positioning, to develop theri own brand road.

    "Develop theri own brand products ,in order not to tender mercies"Mr.Zhang said with deep feeling

    "Have own brand,the price control by youself."Toy manufacturers said simply:"The importance of the brand lies in complete control of prices,generally increase 15% than the enterprise without a license.

    So, how about the domestic market?Statictics indicated that the Chinese average per person expends about 15 yuan,compared with 349 dollars in United States、$144 in Europe exist a large gap.300 million children under the age of 14 containing the doy demand.Xiao Shen Lin hope his business face the domestic market,now is half and half,the domestic market possibly enhance to eight tenths later.

　Experts talk

    Talk about closure   1/3 of the figure is not sensational

　　“Rrmors that 1/3 Hong Kong -invested toy enterprise in Pearl River Delata region will close down,this figure is not sensational." Yesterday afternoon,a economics professor huang Weiping of Chinese People///////////////////////////////////////////////////////'s University interviewed said,the large demanders U.S. and European markets without major fluctuations in 1997 financial crisis,mainly effect in Southeast Asia.On the contrary ,this financial crisis decline the demand in Europe and America market,making China///////////////////////////////////////////////////////'s exports are affected

　　"While facing the risk of failure,as for the toy industry,the company will not close in overnight."Wang Weiping think that it is manily analyze the flexibility of toys,some toys have become necessities,or become the normal toys in the growth of children. Therefore,there still have market.But as for high elasticity toys,such as electronic toys,it take a serious impact when the spending capability change dramatic.For instance He Jun production are high electronics toys,the enterprise produces this toys face more dangers.

　　To save enterprise  The government can introduce policy

　　Huang Weiping believed that higher interest rates and labor costs increase are  the uncontrolable factors to enterprise.Therefore the government must take policy measure ,such as raise export tax rebates again、lower lending rates to help business,enables the enterprise to stabilize their costs.

　　In addition,banks should relas the repayment period for export enterprises,so as to maintain theri operations.

　　Advice    Around the market change and adjust the industrial structure.

　　Huang Weiping said that a while age disscussed the industrial upgrading,many enterprise have developed high-tech products. But when this financial Tsunami erupts,not the production of  high-tech can able to survive.

　　He believe that  adjust industrial structure must around the change of market demand,can not all develop high-tech product.