TakaraTomy to move Factories out of China, to Vietnam and Thailand

TakaraTomy to move Factories out of China, to Vietnam and Thailand

Wednesday, November 7th, 2007 3:53pm CST

Categories: Toy News, Company News
Posted by: i_amtrunks   Views: 13,950

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Agesthreeandup has posted on the tfw2005 boards that Toy Company TakaraTomy will be shifting many of their factories from China to other Asian countries such as Vietnam and Thailand.

A main reason behind the move is because of the mistrust in Chinese made products due in part to the excess amount of lead and other harmful substances found in other Chinese made products over the last few months.
Another reason is to save production costs, as labour costs in Guangdong, China have risen due to labour shortages.

To read the full post, please click here.

Credit(s): agesthreeandup, tfw2005


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Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446627)
Posted by 1337W422102 on November 7th, 2007 @ 3:54pm CST
Can't say I saw this one coming.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446629)
Posted by Liege Evilmus on November 7th, 2007 @ 3:56pm CST
So long as prices don't get any higher, can't say I care.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446632)
Posted by Tigertrack on November 7th, 2007 @ 3:57pm CST
So can we expect there to be a change in quality? Supposedly this seems like it is a move to keep quality where it is at, but I was just curious.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446634)
Posted by i_amtrunks on November 7th, 2007 @ 3:59pm CST
I would think that the factories would be filled with the same equipment, the same products and materials used, the only thing changing would be the location of said factory, and cheaper labour. I'd say quality should be more or less the same then.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446699)
Posted by BLIX007 on November 7th, 2007 @ 4:32pm CST
Makes me wonder if Prices may actually lower b/c of the move. Time will tell.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446718)
Posted by Cyber-Kun on November 7th, 2007 @ 4:41pm CST
if they kept the prices the same and improved the quality, that'd be awesome, but unlikely.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446780)
Posted by zemper on November 7th, 2007 @ 5:13pm CST
i doubt if prices would go lower. the industry still continues to suffer because of high oil prices (per barrel), because petroleum is a key ingredient in making plastics used in the toys.

and besides, has there been a price reduction per price point in TFs in the past 10 years?



:MAX:
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446786)
Posted by Autobot032 on November 7th, 2007 @ 5:16pm CST
Hmm. This is definitely something new. Wasn't expecting this one at all.

Like others have said, I hope this either lowers or keeps the prices the same, but raises the quality.

If it doesn't change for the better, let's at least hope for the same. *crosses fingers*

Although...QC has dropped a bit in Takara/Tomy's game.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446811)
Posted by Stickshift on November 7th, 2007 @ 5:31pm CST
"main reason behind the move is because of the mistrust in Chinese made products due in part to the excess amount of lead and other harmful substances found in other Chinese made products over the last few months"

This is just a convenient excuse. The Mattel F*** up was down to internal missmanagent from what I can tell having spoken to a number of factory managers (unrelated to Mattel) in China. The primary reason is that China is getting too expensive due to labour shortages as mentioned in the second statement. Everyone is feeling the pinch on that and Chinese factories are becoming much more demanding of their customers.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446824)
Posted by Stickshift on November 7th, 2007 @ 5:36pm CST
On the quality front. Most reputable Chinese factories are now excellent, but this comes as a result of nearly 20 years of experience. Operations moving to the path less trodden may find that they have to put a lot more of their own resources in to developing these new facilities (much like many of the startups in China needed management to come from Hong Kong and Taiwan to oversea production)

I would expect longer lead times on new product lines as a result of delays in getting QC sorted.

I doubt the swap over will be absolute and instant though, so they should just about cope
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446842)
Posted by Bumblethumper on November 7th, 2007 @ 5:50pm CST
Stickshift wrote:This is just a convenient excuse. The Mattel F*** up was down to internal missmanagent from what I can tell having spoken to a number of factory managers (unrelated to Mattel) in China.


I think you're probably right. In my opinion the Chinese factories have done a fine job producing TakaraTomy's products. I hope they will be able to maintain the same standards in Vietnam and Thailand.

I wonder if China's lax attitudes to intellectual property was also a factor.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446848)
Posted by Glitcher on November 7th, 2007 @ 5:53pm CST
1337W422102 wrote:Can't say I saw this one coming.


Ditto. I also heard one guy hanged himself at his factory after all orders for his merchandise were cancelled following the scandal.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446853)
Posted by Archanubis on November 7th, 2007 @ 5:57pm CST
zemper wrote:and besides, has there been a price reduction per price point in TFs in the past 10 years?

Has there been a price reduction per price point for toys in general?
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446866)
Posted by Bumblethumper on November 7th, 2007 @ 6:05pm CST
Archanubis wrote:
zemper wrote:and besides, has there been a price reduction per price point in TFs in the past 10 years?

Has there been a price reduction per price point for toys in general?


Well by default, since prices haven't been rising in line with inflation.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (446870)
Posted by shortround on November 7th, 2007 @ 6:10pm CST
Well there really is no surprise there I'm sure other company will be following there lead.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (447037)
Posted by Zeds on November 7th, 2007 @ 7:58pm CST
Tak/Tomy is one of the first to make this step amongst many more to come. This will turn into a stampede in the coming months as there continues to be 'issues' with products coming out of China. Not all the problems are do to the plants as some of them can be related to design 'issues' from Corporate HQ on this side of the pond but China needs to clamp down on QC in its plants and on a side note on its food processing especially after what happened with that dog and cat food fiasco.

Well done Tak/Tomy. Even though most of this is due to the Japanese population expecting higher standards than the rest of the world. Can't see Mattel making this decision anytime soon as our standards are just not as high compared to the Japanese consumer.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (447054)
Posted by andynsm on November 7th, 2007 @ 8:05pm CST
i_amtrunks wrote:Agesthreeandup has posted on the tfw2005 boards that Toy Company TakaraTomy will be shifting many of their factories from China to other Asian countries such as Vietnam and Thailand.

A main reason behind the move is because of the mistrust in Chinese made products due in part to the excess amount of lead and other harmful substances found in other Chinese made products over the last few months.
Another reason is to save production costs, as labour costs in Guangdong, China have risen due to labour shortages.

To read the full post, please click here.


not really surprised by this. despite China still being the world's factory; with their rise in prominence so do labor costs etc rise with that as well so not just toy manufacturers but many other industries are already looking at countries like Vietnam & Thailand as the next best option for obvious cost reasons.

A
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (447622)
Posted by Patrick Bateman on November 8th, 2007 @ 4:15am CST
What andynsm said. China is getting more and more expensive as the economy grows. That will happen to Vietman, Thailand etc. in 10 or 15 years from now just as well.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (447624)
Posted by Stormrider on November 8th, 2007 @ 4:17am CST
This sounds like very good news. I am sick of the quality control and poor workmanship from Chinese made products. This may also stop some of the KOs too.

Thailand and Vietnam have a highly skilled labor force. Let's hope they have learned something from China's poor business standards and environmental disasters though.
Re: TakaraTomy to move Factories out of China, to Vietnam and Thailand (447689)
Posted by andynsm on November 8th, 2007 @ 6:28am CST
think itz only natural from a company perspective, they'd go look for cheaper alternatives but i guess end of the day for us collectors, we just want to be assured that quality is not compromised.

A

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