Hasbro?s Chinese suppliers re-locate

Rising costs make Hasbro?s China-based suppliers move production from coastal industrial regions, according to a report.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

The firm expects a 14-15 per cent increase in the costs of made-in-China products this year, due to higher labour, commodity and currency costs, as well as the impact of additional product safety testing, according to an article in the Financial Times.

David Hargreaves, chief financial officer, said: “Some of our vendors are moving further into China in order to obviate the higher labour costs.”

Al Verrecchia, current CEO (pictured), predicts suppliers will respond to rising prices by gradually extending their own supply chains to factories based around inland cities.

“I think you are liable to see more people moving inland into China, and.probably over a longer period of time, you’ll see some sub-assemblies, some painting operations moving inland, and then final assembly continuing to be done at existing factories,” Verrecchia said.

However, increasing production in inland regions could pose significant challenges for suppliers, as they can lack infrastructure for modern manufacturing.

But Verrechia said inland China is more attractive than shifting production to Vietnam, which is limited by its smaller size, language issues and a lack of support services and infrastructure.

“You start to develop new vendors in places like Vietnam, you’ve got to start all over again with issues of quality and safety and product reliability,” he said.

Related

5_Pocoyo.jpg

Chinese to sue Mattel?

Reports from China say that the government of Guangdong Province may help local manufacturers file a lawsuit against Mattel.

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.