The news over the past few months has been filled with stories of toy recalls. With more than three million toys manufactured in China already recalled due to dangerous lead paint, the entire industry has been forced to increase its safety standards, and sooner or later the added costs are going filter down to toy prices.So far, consumers have not had to foot the bill for the added safety measures, but according to analysts, that is all going to change after this year's busy holiday shopping season. Starting next year, it is estimated that toy prices could jump as much as 10%, making it the largest one-time jump in several years. Toys are not going to be the only consumer items that will be hit with rising costs. Other imports from China of fish and children's apparel are also going to be susceptible to increases.
It poses the question -- how much is your child's safety worth? I think the answer to this question is rather obvious; it is worth whatever it takes to ensure that the products are safe for the little ones to play with. While there is undoubtedly going to be many upset shoppers out there, I, for one, believe the added costs are immaterial when the safety of children is at stake.
The majority of the added costs are coming from test toy manufacturers are starting to have, and the use of independent third parties to test the quality and safety of all toy imports coming out of China. Another facet might be added pricing pressure arising from a shift away from Chinese imports altogether.
As no company wants to feel the public relations sting of another product recall after all of the recalls this year, many toy dealers may be moving away from Chinese imports and opting instead to use toys made in Europe or America, which are by nature higher dollar items.
What are your thoughts on this issue? Should consumers accept the rising costs, or should we expect toy makers and retailers to continue to bear the brunt of the added costs associated with increase safety?
[photo Contra Costa Times]
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer
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Reader Comments (Page 1 of 1)
9-14-2007 @ 2:02PM
John said...
I grew up playing with lots of toys that were painted with lead paint.
I licked them; I sucked on them.
I'm not recommending it, but it's as reliable as 2 plus 2 is 3 that this whole thing is being insanely overblown.
9-14-2007 @ 4:09PM
Lisa said...
I believe that people will purchase the higher priced toys....I would. Christmas, Hannaka, Birthdays, celebrations of all kinds require toys sometimes. Do you really think most people care....especially those with credit cards! BUY NOW PAY LATER! I do have a question---why is lead a component of the toy paints anyway? Please simply explain that to this non-scientist in lay-man's terms thanks!
9-14-2007 @ 5:12PM
John said...
The explanation I read is the lead makes the colors much more vibrant. It's probably also cheaper and longer lasting.
When I was kid all oil paint had lead in it. My Tonka trucks, for instance, were probably painted with lead paint.
9-15-2007 @ 9:37AM
Roland said...
Toy production was moved to China so the manufacturers could benefit from cheap labor all in the name of Globalization. As we now know, China (like communist Eastern Europe before it) is living its econonmy on borrowed time. There are no environmental laws or standards. The population is drowning in polution. We have the highest paid executives in the world and they don't know how to write production processes that are safe and environmentally friendly? Or is it only to maximize their bonus and profits. How shameful!!
9-18-2007 @ 4:47PM
Sheryl said...
All imports that are not safe to people or the the environment should be banned! Companies who violate these safety rules should be turned over to the World Trade Organization. Although lead is highly toxic, I would bet not nearly as toxic as the sulfates such as sodium nitrate that the US FDA allows as a perservative in our food. Do not know of anyone who has died from lead paint, but know of several including a 14 year old boy who have died from cancer caused from the nitrates in our food!
9-27-2007 @ 3:09PM
Ztea said...
I would guess that most people over the age of 60 grew up with lead paint and lead plumbing. Not only are they still here, but many are living older than in any previous time. The whole lead scare is nonsense. Recalls have become the biggest scam because recalled items are replaced with new ones...more new sales and more shipments! No wonder that affected stores have increased sales. I say forget the recalls because the risk of death or injury is so microscopic. Keep your "stuff" and save a lot of money!