“Our labor problem is that we can use only 70 per cent of
25 work capacity. This has a major effect on the business because we
are unable to manufacture in time to meet orders.”
Low labor costs aside, China also has its own raw materials,
while Thailand still needs to import them from Korea. Some Thai
toy manufacturers recently tried to source their materials locally,
30 but found suppliers were incapable of meeting demand.
As a result, low labor costs and locally sourced materials are
the two main factors enabling Chinese manufacturers to produce
toys at half the price of their Thai counterparts.
Parks Toy pondered what its advantages might be, and it
35 concluded that they were quality, design and after-sales service.
And these things, it believes, should be enough to create business
opportunities.