The Courier Mail reports that
It has been a nightmare six months for the toy industry, with four massive recalls of products made in China, including Australian 2007 Toy of the Year Bindeez beads (Aqua dots in the US) and hundreds of thousands of Mattel products.
Distributors have apologized and there has
been a huge fallout against Chinese toymakers. In fact, it has perhaps unfairly, tainted the whole of the "Made In China" brand, as far as toys are concerned.
Backlash Against Buying Chinese Made Toys
The current backlash against buying Chinese toys is understandable, given recent events. Where children's safety is concerned, you can't be too careful. This is spelling big problems for toy distributors and toy stores.
Impact Of Recalls On Small Business Cash Flow
Toy retailers may be able to send toys back to distributors and claim refunds, but this will take time to process. In the meantime, cash flow and stock levels are affected at the main toy buying time of year with the Christmas gift frenzy peaking.
Non Chinese Brands Affected & Outsourcing
While a lot of discount stores are feeling the pinch with consumer backlash, it's interesting to note that even respected brand name toy companies such as Mattel have been adversely affected.
While outsourcing brings financial and business rewards, it also carries risks and responsibilities.
Safety Regulations & Audits
While audits are done by Governments and inspectors visit distributors and stores, it seems the regulations and tracking need to be tightened even more.
Consumer Action Guide
In the absence of fast government action, sites like HealthyToys.org are springing up to assist consumers. HealthyToys.org bills itself as a "consumer action guide to toxic chemicals in toys."
Implications For Small Business Toy Makers & Retailers
If you are small business owner toy retailer, how have the recalls impacted on you?
What opportunities do you see for establishing a point of difference with your toys, if you can demonstrate they are a safe choice for your customers?
As a small business, with significant plans for expansion in 2008, this is a siren call for larger retailers and manufacturers to take this seriously and change from the inside out. This is where we come in with our site at Toys Not Made in China at http://toysnotmadeinchina.org We currently have 47 different makers of very cool, original, educational games and toys and other gear ALL NOT made in China. Strategically, it is important to provider purchasers across the globe with alternatives. By doing so is what global trade is all about. Unfortunately, the practices of countries seems to want to prevent this free choice and having viable alternatives.
Posted by: Julia Bourne-Smith | December 15, 2007 2:56 PM | Permalink to Comment