[advertise]广告[/advertise]March 4, by Liu Minxia, Shenzhen Daily, RISING labor costs, the yuan appreciation and trade barriers have forced 60 percent of toy exporters in Shenzhen to close over the past five years, and the remaining 500 toy exporters are in urgent need of upgrading. Shenzhen exported toys worth US$4.02 billion last year, accounting for 20 percent of the total shipped by Chinese toymakers, official figures showed. But the toy manufacturing industry has been on a downhill path in recent years, Ma Zeguang, president of Shenzhen’s toy industry association, told yesterday’s Shenzhen Economic Daily. “In the 1990s, anyone could make money by opening a toy factory,” Ma said. “But all toymakers are now facing four major problems: trade barriers, labor shortages and rising labor costs, rising material costs and yuan appreciation, which squeeze their profits.” A recent survey by the association showed that there were only 500 toy exporters in Shenzhen, compared with 1,200 in 2005. The economic downturn in 2008 forced many to venture into the domestic market and they met a lot of difficulties, said Liu Yanfang, secretary general of the association. For example, almost all of the upscale market in Shenzhen has already been dominated by foreign brand names. “It takes time to develop sales channels on the mainland,” said Tang Tao, assistant to the chairman of Shenzhen Duoyuan Plastics Co., which ships 90 percent of its products overseas. Improving designs, using high-technology and building brands were ways out for these toy exporters, Liu said. Both Zheng Gang, general manager of Shenzhen Xilong Toy Co. Ltd., and Liao Tangkui, manager of Yaobang Products Co., realized improving designs could mean better profits, yesterday’s Shenzhen Economic Daily said. However, their achievements were paled by Shenzhen Ledi Electronics Co. Ltd., a small toymaker that employs only a dozen people but pays 800,000 yuan (US$11,730) in tax to governments every year, thanks to the inclusion of aero remote control products.