EU regulation enhances toy safety

Using more environmentally friendly materials means the cost for toy manufacturers will increase by a large margin, according to Jiang Xiaoliang, who works for Jiangmen's quality inspection and quarantine bureau.

To cope with the possible surge in cost, "toy manufacturers should also find alternate materials or upgrade their designs for toys", he said.

Added pressure

Liu Yanfang, secretary-general of Shenzhen Toys Industry Association, said the new regulation will put more pressure on China's exports, which have performed weakly in the first half of the year.

According to the customs authority, China's toy exports registered a slight increase of only 5.8 percent in 2012, 1.6 percentage points lower than a year earlier, due to the increased overseas quality requirements and rising production costs.

The regulation will bring more challenges for large producers, which are building their brands in overseas markets.

"Toy manufacturers should adapt to the changing overseas market, which has introduced a series of technical standards for Chinese toy products. In the long term, companies who attach more importance to self-innovation and building brands will find customers in Europe," he said.

Michael Liu of Intertek, who is also a member of China's National Technical Committee of Standardization for Toys, said the new directive could provide an opportunity for domestic enterprises to upgrade industrially.

"If large Chinese toy enterprises seize the opportunity, the new standard will increase the competitiveness of Chinese toy enterprises and help them increase market share and rely less on low prices for competition in the international market."

Industry insiders called on Chinese toy manufacturers to pay more attention to emerging markets to sustain business growth, given that demand in the traditional markets of the United States and Europe are weakening and more technical requirements are expected in the future.

Lin Wei, general manager of Big Tree Toys in Shantou, Guangdong province, said the toy maker has attached increasing significance to the domestic and emerging overseas markets.

"Demand in the major markets in the US and Europe has dropped significantly in the past few years. But new demand from the domestic and South American markets has increased," Lin said.

With stricter quality requirements in the European market, Lin said the company will increase its efforts to improve product quality and testing.

"We will not give up the major market. But we will also develop sales channels in emerging markets," Lin said.

Liu Yangfang of Shenzhen Toys Industry Association said local companies have been preparing for the new technical requirements for the past few years.