How a Chinese-made toy gets to a US retailer

China's toy industry is set to experience a surge in demand as Christmas approaches, with nearly eight in 10 toys imported into the US coming from China.

The majority of these toys are made by Chinese factories that employ over 800 people and produce around 55 million toys per year for the American market, which accounts for half of their business.

According to US government figures, nearly eight in 10 toys imported into the country in 2024 came from China, with last year's imports worth $9. 8 billion (£7. 4 billion) to the US trade figures show.

The Chinese toy industry is a significant contributor to the global market, with many factories located near major ports such as Shenzhen and Guangzhou.

FreightAmigo, a Hong Kong logistics company, helps exporters like Mihox get their toys from China to the US by booking cargo containers, arranging insurance cover, and securing finance.

The cost of getting a toy onto the shelves in the US requires both a lot of work and a long journey, with the average pay in Vietnam being about half that of China's.

Chinese labour is not cheap anymore, after recent rises, but fewer than 10% of Ko's members have moved any production outside China, mostly because customers asked them to do so.

The US toy industry is expected to be the busiest time of the year by far, with retailers preparing their stocks for the festive rush.

As retailers prepare their stocks for the festive rush, they are also looking into new ways to reduce costs and increase efficiency in their supply chains.

One such way is through the use of technology, such as artificial intelligence and blockchain, to improve inventory management and track shipments more efficiently.

The benefits of using technology in the toy industry are not limited to cost savings and increased efficiency; they also enable companies to respond quickly to changes in demand and supply chain disruptions more effectively.