|Chinese Toymakers’ Losses Are US Toymakers’ Gains|
|Topic||Supply and Demand; Equilibrium|
|Key Words||toys, China, US, lead, paint, quality, demand|
|News Story||In the wake of the massive recalls of Chinese-made toys that were discovered to have lead paint on them, US-based toy manufacturers are reaping the benefits of painting with lead-free paint.
About 80% of all toys sold in the US are made in China, so US-made toys tend to be sold online or in smaller specialty toy shops around the country. The scare that the recalls have put into parents’ minds is causing several consequences for US toy makers and retailers.
Manufacturers are seeing an upswing in demand for their products. Whittle Shortline Railroad, a company that makes wooden trains, has seen inquiries about its use of pain on its toys skyrocket, and demand for its product increase by 40% in the last two months. Other US manufacturers are experiencing similar activity.
The specialty stores that stock trains like those produced by Whittle Shortline Railroad also tend to more expensive, eclectic toys, and have always sought to differentiate themselves from the mass-market retailers. Even still, many of these stores are experiencing an upsurge in purchases of their products. And while some indicate that they have not yet been affected by the toy recalls, most accept that things will be different around Christmastime. Even if they are not affected now, they will see demand for their products increase then; parents tend not to forget about such things.
|Source||Martin, Andrew. “U.S.-Made Toys Benefit From China’s Troubles.” The New York Times, August 15, 2007.|
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