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Toy Fair 2016

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Jesse James:
Hasbro's already moved some manufacturing out of China according to something Adam Pawlus wrote up recently...  A slowdown there isn't going to stop their growing middle-class by any means though.  Not to mention Hasbro doesn't tend to use the "cheap" factories.  Like a dollar store toy might, for instance.  Product costs are up there, and I don't see them going away.

Vietnam, India...  If Hasbro moves, they have options, but these companies will still be held to the US standards too, and Hasbro again has always has their own standards that tended to be above.  Some of this came about after the whole lead paint debacle a while back.

I'm not really surprised that Hasbro would start going to factories outside of China.  The economic trend has been showing us that the cost of labor in China is on the rise.  And countries like Vietnam and India are the next source of that low cost manufacturing.

The whole lead paint in toys scandal was a real game changer in the toy industry.  Costs went up in a dramatic fashion after Hasbro and other toy manufacturers responded with the increased emphasis on safety, which in turn came with increased costs.  And of course, that gets passed on to us, the consumers.


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