What is necessary for a stronger future growth of Chinese toy industry?
Directions: Choose the most correct answer based on the given reading.
A. China’s manufacturing reputation received a severe blow when last month Mattel, the world’s biggest toy maker brought back more than 18 million Chinese made toys. The company discovered impermissible levels of lead paint and the use of powerful loose magnets that could damage a child’s organs if swallowed.
B. As a result, the chairman and chief executive of Mattel, Mr. Robert Eckert at a press conference said, “We’re reaching out to people today and particularly parents. We have changed our own testing procedures, so we will be extra vigilant in this area.” The Chinese government officials have said that the current criticisms are overemphasized and unfair. They say that other manufacturers are jealous of their hold on the manufacturing market.
C. More than 80 percent of all toys are produced in China and then are marketed abroad. The chief reason behind it is the Asian country’s cheap labor cost that enables toy companies to meet retailer and consumer demand for cheap products. This empowers middle class and even lower strata of the society to buy their children the latest toys available in the market. The role of toys and games enhancing children’s education also attracted parents’ attention which rapidly increased the sales of Chinese toys worldwide. They became the fountain of entertainment with education.
D. The increasing growth rate of video games further boomed the sales of Chinese toys and games. The main producers of this market are international companies and mainly their products come from South Korea and Japan. If we talk about China itself, the most popular and the best sold products there are the medium and high–price products offered by the international brands. Because of the one–child policy in China parents manage to buy the best toys and games for their only child. This increases the sale of branded products and competition in the market. The chief sufferers of such a competitive market are the domestic manufactures.
E. In order to attract the attention of its customers, new technology and innovation play the most significant role in this industry. The latest and new models of toys and games will keep on attracting adults and children alike and this will encourage the manufactures to develop new technologies and new models.
F. According to poll conducted last week by Reuters, 82 percent of the Americans are concerned about Chinese toys and nearly two thirds are in the favor of boycotting them. In a report of year 2006, above 900 products were distinguished as dangerous to be sold in the 27-nation market, and China being the origin of more than half of them. More than a quarter of Chinese goods are exported to the EU market.
So, the European commission along with China is working to prevent the entry of dangerous products into the EU market.