The latest statistics from Huangpu Customs indicate that exports to the U.S. this year totaled US$130 million, down by nearly 20 percent. Exports to the European Union (EU) totaled US$65 million, down by 5 percent.
The peak period for the export of Christmas goods generally begins in July to ensure arrival of the products prior to Christmas. However this July, Guangdong’s export values were down by 10 percent to US$120 million, according to the report.
The report also quoted analysis from the export industry that there are three main reasons for this substantial decline.
First, the global financial crisis has affected demand and caused a decline in orders from major Western consumer nations. As the blending of Eastern and Western cultures has taken place, and with the adaptation to a foreign holiday in China, manufacturers saw an increase in domestic consumption of such products. Many small and medium-sized businesses have chosen domestic markets rather than exports.
Among other factors that have increased the manufacturing costs and decreased the profit margins for manufacturers are the elevated price of crude oil and other raw materials, such as plastics, and the appreciation of the Chinese currency. To adapt to these changes, many manufacturers have switched to different commodities, different customers, or different products.
Second, there are shortcomings in the Chinese manufacture of Christmas goods in the area of technique and innovation. The majority of the exports from Guangdong are plastic-based and inferior in quality, variety, and design. Most are the products of imitation, and there are no independent brands.
Finally, there are serious negative impacts on the manufacturers from technical barriers and environmental factors. The frequent toy recalls in recent years, which have heightened concern overseas regarding the quality and safety of products made in China, have resulted in the tightening of inspection and regulation procedures. Thus, manufacturers face the pressure of possible penalties and other restrictions.
