Chinese toys "Christmas robbery"
Financial crisis to U.S. retailers have pessimistic expectations, the 2008 Christmas sales season fear will disappear. To do this supplier has also been word within the Chinese factory.
"2008 Christmas in European and American customers order a decrease of 50%, and our orders have not been available the next." 1 Plush Toys Exporters told reporters that the market is very bad.
More bad news is that Wal-Mart, Target and other international buyers to suspend the global procurement, unless the product must be purchased only. They removed a lot from October 2008 to next March's orders.
Order to reduce panic May not reproduce this year, the U.S. retail market in previous years Christmas. Recently, the U.S. Commerce Department said retail sales in September fell 1.2% nationwide for the biggest decline in 3 years. Financial crisis will worsen U.S. consumer spending.
U.S. retailers cut orders for Christmas goods, including Christmas trees, rattan, wreaths and toys. "We do have to reduce this year's orders, because the company's sales forecast for next year rather pessimistic, conservative, and last year's poor sales caused by the backlog of inventory." A major American retailers procurement staff confirmed to reporters that they expected end of next year Before the market will see a rebound.
Toy production in China accounts for 75% of the world's toy industry has long felt the crisis orders. Gu Wu is a remote control toy exporters in Shenzhen, with the eight previous years, 90 months worked on the Christmas orders is completely different, but now he felt a marked decline in orders. "This year at least 40% reduction in orders, while some recent large customer orders under the plan early on, and seven in August orders were received in October stopped."
And a Dongguan Wooden Toys Factory boss reflects the recent Wal-Mart, Target and other U.S. orders, many buyers have canceled. These large enterprises were originally planned to order a year.
Toy factory in China this year has been no "Christmas."
Do Quanzhou, Fujian Province Christmas toy exports along the U.S. Department of Yanjian Huang Group, said the absence of orders, Fujian many gifts Toy Company To stop the Inland Revenue Department reported.
Funding strand breaks Forcing the Factory
In order to reduce the same time, the credit crunch caused by the financial tsunami, a large factory there to make money strand breaks crisis.
"Financial tsunami was the last straw that breaks the factory." Pao toy factory in Shenzhen Mission Hills director Xue Xiaowei that the closure of many factories are now the biggest problem is funding strand breaks, not the cost.
Factory strapped for cash now from two aspects: First, bank loans, letters of credit before the plant can get to the banks for loans for the purchase of raw materials, but now banks are tightening export enterprises exporting enterprises loan assets review standard. Second, the accounts of suppliers, these suppliers will be to plant two or three months of the account period, many suppliers are now required in order to avoid the risk of cash settlement.
Widely concerned about the recent Hong Kong-listed Smart Union Group factory in Dongguan Zhangmutou the closure of two toy chain is broken because of funding. Smart Union is the world's largest toy factory on behalf of one of the world's largest Toy Brands Mattel, Hasbro and so are its customers.
According to report, in the closure of Smart Union announced the day before its share price fell 0.08 Hong Kong dollars, and July 20, 2007 closing price of 2.38 Hong Kong dollars compared to a record high, sharp declines 95%. As the stock market is extremely low and simple OEM Smart Union toy manufacturers are not optimistic about the labor-intensive, it has been unable to borrow money from banks in Hong Kong. At the same time, suppliers to stop the supply of ways to recover the money.
I am an expert from China Products, usually analyzes all kind of industries situation, such as pencil top erasers , ice cream erasers.
Processing your request, Please wait....
