Subscribe free to our newsletters via your
. 24/7 Space News .




TRADE WARS
German firms pull out as Chinese fluff teddy production
by Staff Writers
Berlin (AFP) July 6, 2008


In the end it was a sneaking suspicion that the eyes had lost their iconic melancholy look that made Steiff realise that if you want top-quality teddy bears, there's no place like home.

Before that it was the three-month wait for 80,000 cuddly white polar bears to arrive just as "Knut", Berlin zoo's real life star, was gracing the cover of Vanity Fair and demand was exploding.

For the German soft toy maker, which started life in the late 18th century before teddy bears were even called teddy bears, with a wheelchair-bound woman making elephant-shaped pincushions, trying to produce in China was no picnic.

In an effort to cut costs Steiff began outsourcing production to Chinese factories in 2004, and even sent 300 workers there to make sure the bears were up to scratch.

But this week Steiff called time on its Chinese adventure.

"We are withdrawing from China step by step. For toys of high quality, China is simply not a reliable source," the Stuttgarter Nachrichten newspaper quoted chief executive Martin Frechen as saying.

But for this privately owned company, whose teddies sell for up to 120 euros (190 dollars) each and which is trying to win back market share for its trademark bear with a button sewn into its ear, quality is everything.

The multi-billion dollar toy industry has been at the forefront of the massive shift of manufacturing to China where it can pay workers a fraction of what it pays them in the West.

Four out of five toys sold in Europe were made in a Chinese factory, and China exported 22 billion of them of them in 2006.

But problems with quality and a series of scares about safety has made firms a lot more wary.

In the most high profile episode, US toy giant Mattel recalled 21 million toys like Barbie dolls and Batman action figures last year over concerns about toxic lead paint and small magnets that children could choke on.

Mattel admitted later its problems were down to design more than manufacturing flaws, and Chinese authorities have since tightened quality controls and have cracked down on factories producing dangerous toys.

But safety and quality problems remain, and stricter import laws are having the effect of reducing the cost advantage of going east, firms say.

"There are going to be new regulations in the European Union," said Ulrich Brobeil from the German toymakers association DVSI, so it is set to be "easier and cheaper to manufacture in Germany or in nearby countries."

The story is the same in other industries, as textile firms attest.

"We are feeling that there is a movement in this direction," of "returning," Silvia Jungbauer from the industry's federation in Germany told AFP.

"Geographical proximity is playing a predominant role again, quality too," Jungbauer said, and most importantly "cost in China have risen sharply in recent months."

Wages for Chinese workers are going up and up, and oil prices above 140 dollars a barrel are also making it significantly pricier for container ships full of teddies and radio-controlled mini-helicopters to sail around the world.

In the past year alone, the cost of producing in China has risen 30 percent, estimates Reinhard Doepfer from the European Fashion and Textile Export Council.

Apart from Chine, "Albania, Macedonia and Serbia-Montenegro are the hot topics for German industry," Doepfer said. "(But) I can't see production coming back to Germany, no way."

Indeed Steiff is not moving back to Germany, but to Portugal.

.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








TRADE WARS
Shrinking profits force hundreds of Chinese shoe makers to quit
Beijing (AFP) July 1, 2008
Hundreds of shoe makers in southern China have closed down this year as profits slumped due to the rising yuan, higher costs and a weakening demand overseas, industry insiders said Tuesday. Around 500 shoe factories -- or 10 percent -- in Huidong county in Guangdong province have closed, Mingdanni Shoes Co. owner Ye Hua told AFP. Huidong is on the Pearl River Delta, the world's largest ... read more


TRADE WARS
Looking For Early Earth...On The Moon

Moon-Bound NASA Spacecraft Passes Major Preflight Tests

Northrop Grumman Completes LCROSS Thermal Vacuum Testing

NASA Study Provides Next Step To Establishing Lunar Outpost

TRADE WARS
Phoenix To Bake Ice-Rich Sample Next Week

Rain Showers On Mars

Mars Sample Return: The Next Step In Exploring The Red Planet

New Soil Analysis Suggests It Rained On Mars Long Ago

TRADE WARS
Analex Awarded Three-Year Option On NASA Expendable Launch Vehicles Integrated Support

Russia seals agreement with private investor for space tourism

Fly me to the Moon: Japan firm offers weddings in space

NASA Goddard Has More Than A Dozen Exciting Missions In Next Year

TRADE WARS
China's Shot Heard Around The Galaxy

Shenzhou VII Research Crew Ready To Set Out For Launch Center

A Better Focus On Shenzhou

Gallup Poll Shows Americans Unconcerned About China Space Program

TRADE WARS
NASA plans two ISS spacewalks next week

Discovery undocks from ISS

Shuttle astronauts bid farewell to space station crew

Shuttle Astronauts Bid Farewell To Space Station Crew

TRADE WARS
Russia Launches Rocket With Military Satellite

Inmarsat And ILS Set August 14 For Proton Flight With Inmarsat Satellite

Payload Integration Complete For Arianespace's Fourth Mission Of 2008

Successful Ariane 5 Solid Rocket Booster Test Firing

TRADE WARS
Chemical Clues Point To Dusty Origin For Earth-Like Planets

Astronomers discover clutch of 'super-Earths'

Vanderbilt Astronomers Getting Into Planet-Finding Game

NASA Selects MIT-Led Team To Develop Planet-Searching Satellite

TRADE WARS
NASA Considers Development Of Student-Led Satellite Initiative

SATLYNX Completes 300 Site SCADA Network Rollout For EDF Energy

Herschel Undergoes Acoustic And Vibration Tests

Russian-US Launch Firm To Put Satellite In Orbit In August




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement