Shantou toy makers leverage location, transportation
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.
| Toys contribute significantly to total output
The toy industry occupies a decisive position in the economic development of Shantou, with yearly production exceeding $3.2 billion. This accounts for more than 35 percent of the city’s overall estimated sales and at least 20 percent of China’s plaything shipments. 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. |
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