In 2024, nearly 80% of toys imported into the US were made in China, with the total value reaching $9.8 billion. As the holiday season approaches, the toy industry gears up for its busiest period. The BBC’s Follow the Money series explores the journey of a toy from a factory in China to US retailers. Guangdong province, particularly Dongguan city, is a hub for toy manufacturing. At the Mihox factory, over 800 workers produce around 55 million toys annually for the US market. The process begins with a design from a customer, often an American toy company, and can take one to two years to finalize. Once approved, production is quicker, with moulds taking a month to make and production runs lasting three months. The factory receives about 20% of the retail price, or $6 on a $30 toy, covering materials, wages, and profit. Despite automation in some areas, toy production remains labor-intensive, and Chinese labor costs have risen, making Vietnam a cheaper alternative.
QUESTION: How might the rising cost of labor in China impact the global toy industry and consumer prices in the future?
As Christmas rush looms, how do China-made toys find their way to the US?
