Shantou toy makers leverage location, transportation

	Toy racetrack set from Guangwei

Part one of this three-part series highlights the city’s competitive advantage as a manufacturing hub.

Shantou’s toy industry benefits from the city’s strategic location and extensive transportation system, fortifying its position as a key sourcing base and one of China’s five special economic zones.

Lying along the east coast of Guangdong province and south of the Hanjiang River delta region, the hub is a vital import, export and commodity distribution center. The port is connected to 272 harbors in 58 countries across the globe and can handle nearly 30 million tons of cargo.

In addition, the area is linked to other major cities via the Guangzhou-Meizhou-Shantou train line and the Shantou-Fenshui highway, which reaches Shenzhen and Xiamen. Further, the Shantou Waisha Airport accommodates 46 domestic and international flights weekly.

Because of the close proximity to Shenzhen, which is also a noted economic zone, both cities play critical roles in each other’s development, particularly for the toy sector. To illustrate, many RC model makers set up their headquarters in Shenzhen because of the more open and innovative business environment. Their R&D and production facilities, however, remain in Shantou to take advantage of the lower labor and land rates.

With a total area of 2,064sqkm, Shantou has six administrative districts and one county. Among them, the district of Chenghai is known as China’s key manufacturing center for toys and gifts. About 95 percent of the city’s plaything companies are found here. And as the brand-building base of Guangdong, strategies are carried out to promote the region’s competitiveness and highlight outstanding releases.

Further, the locale hosts an annual international toys and gifts fair with the help of organizations such as the Chenghai Toy Technology Innovation Center and the Chenghai Toy Association. The event has been one of the nation’s most important trade shows since 1999.

About 70 percent of the hub’s revenue from the line comes from abroad. Annual export growth rates have maintained double-digit figures since 2003, with increases particularly staying above 20 percent beginning 2007. Outbound deliveries amounted to $670 million in 2010, rising 25 percent YoY. Further, foreign transactions totaled $380 in 1H11, improving about 30 percent compared to the same period last year.

At present, the city’s toy makers cater to customers in more than 110 countries. Among the top markets are the ASEAN, the US, the EU and Japan. Shipments to the first area climbed about 27 percent in just the first six months of 2011.

The city’s plaything sector consists of 3,000 small and midsize suppliers. Together, these businesses have created at least 6,000 patented products, and four national and 10 provincial brands.

Read Part 2 of this report.

Shantou toy suppliers

Changsheng Plastic Toys Fty  Deerman Enterprises Ltd  Guangdong Caipo Toys Industrial Co. Ltd  Guangwei Toys Industry Co. Ltd  New Capable (Hong Kong) Industries Ltd  Ocean Toys Industrial Ltd  Pak Tat Toys Industrial Co.  Shantou Akai Toys Industrial Co. Ltd  Shantou Chenghai Qunsheng Toys Business  Shantou Chenghai Ximu Plastic Toys Co. Ltd  Shantou Dihua Trading Co. Ltd  Shantou Jinming Toys & Crafts Imp. & Exp. Co. Ltd  Shantou Junfa Trading Co. Ltd  Teemway Industrial Ltd  Yuyuan Toys Fty

Guangdong Caipo Toys Industrial Co. Ltd

Year established: 1999
Head office location: Guangdong
Key export product: RC toys
Annual export sales: $5mn to $10mn
Average monthly exports: 42,000 units
Total monthly capacity: 60,000 units
Export ratio: 70%
Annual R&D spending: $1mn

Model: 3103
MOQ: 3,000 units
Delivery: 45 days
Description: RC car; zinc alloy, ABS; 27/49MHz; four channels; 10m indoor, 15m outdoor transmission range; multiple directions; light function; working doors; 3.6V, 250mAh battery; 60min charging period; black or red; EN 71, ASTM

Guangwei Toys Industry Co. Ltd

Year established: 2002
Head office location: Guangdong
Key export product: Toys
Annual export sales: $10.1mn to $50mn
Average monthly exports: 360,000 pieces
Total monthly capacity: 400,000 pieces
Export ratio: 90%
Annual R&D spending: $500,000
Major customers: Kmart, Tesco

Model: P3888A-3
MOQ: 100 sets
Delivery: 15 days
Description: Toy racetrack set; six plastic cars, one parking garage with track; with trap door; in various track options; one set per 60x10.5x42cm window box, eight sets per 88x44x62cm carton

New Capable (Hong Kong) Industries Ltd

Year established: 2001
Head office location: Guangdong
Key export product: Toys
Annual export sales: $10.1mn to $50mn
Average monthly exports: 332,500 pieces
Total monthly capacity: 350,000 pieces
Export ratio: 95%
Annual R&D spending: $500,000

Model: MH17489
MOQ: 200 sets
Delivery: 30 days
Description: Beach toy set; toy truck, sand sifters, rake, shovel, watering can, molds; ABS

Shantou Akai Toys Industrial Co. Ltd

Year established: 2009
Head office location: Guangdong
Key export product: Toys
Annual export sales: $1mn to $5mn
Average monthly exports: 400,000 pieces
Total monthly capacity: 600,000 pieces
Export ratio: 66.7%
Annual R&D spending: $100,000

Model: AK56001
MOQ: 2,000 units
Delivery: 50 days
Description: RC car; 1:14; >20m transmission range; four directions; light, sound functions; black or red; FCC, RoHS, EN 71

Shantou Chenglee Plastic Co. Ltd

Year established: 1993
Head office location: Guangdong
Key export product: Toys
Annual export sales: $10.1mn to $50mn
Average monthly exports: 15,000 pieces
Total monthly capacity: 20,000 pieces
Export ratio: 75%
Annual R&D spending: $1mn
Major customers: Auchan, Carrefour, Kmart, Lotus, Tesco

Model: CGBZ6903
Delivery: 15 days
Description: Building set; ABS; princess castle motif; 37x29x8.5cm

Shantou Dihua Trading Co. Ltd

Year established: 1999
Head office location: Guangdong
Key export product: Toys
Annual export sales: $10.1mn to $50mn
Average monthly exports: 50,000 pieces
Total monthly capacity: 50,000 pieces
Export ratio: 100%
Annual R&D spending: $500,000

Model: OWGDH0321
MOQ: 50 cartons
Delivery: 30 days
Product description: Water gun set; two water guns, one water pack; PP, ABS