- The stuffed toys referred to here are toys such as stuffed animals and cartoon characters, and do not include stuffed dolls, vegetables, buildings or other objects.
- Japan was once a major exporter of stuffed toys, and exported large quantities to Europe and U.S.A. especially. Now, however, imports are growing and Japan is a major importer. The main reason for this is the shift of production to China and other parts of Asia, where costs are lower, by Japanese manufacturers due to the steep rise in costs such as the cost of labor, raw materials and transportation in Japan. Robust demand for distinctive characters and prizes for amusement arcades and pachinko parlors has accelerated the growth in production overseas.
- Imports of stuffed toys (animals and cartoon characters) in recent years have been as follows:
|
Volume (1,000)
|
Value (million yen) |
| 1997 |
125,802 |
25,461 |
| 1999 |
168,554 |
30,810 |
| 2001 |
219,792 |
35,936 |
| 2002 |
200,221 |
37,114 |
Source: Japan Trade Monthly
- Volume imports from the main sources have been as follows:
|
1997
|
1999 |
2001
|
2002 |
Value |
(Share) |
| China |
107,541 |
156,024 |
211,900 |
194,105 |
34,360 |
(92.6%) |
| Vietnam |
675 |
3,906 |
2,462 |
2,058 |
356 |
(1.0%) |
| Indonesia |
2,803 |
3,867 |
1,675 |
559 |
238 |
(0.6%) |
| Philippines |
346 |
631 |
1,126 |
328 |
164 |
(0.4%) |
| Thailand |
1,115 |
1,103 |
1,003 |
1,147 |
657 |
(1.8%) |
| Others |
13,323 |
3,022 |
1,626 |
2,024 |
1,339 |
(3.6%) |
| Total |
125,803 |
168,553 |
219,792 |
200,221 |
37,114 |
(100.0%) |
Source: Japan Trade Monthly
Units: 1,000s (volume), million yen (value)
- The overwhelming majority of imports in 2002 came from China, which accounted for 96.9% of imports in terms of volume and 92.6% in terms of value. Second-placed Thailand accounted for just 0.6% in volume terms and 1.8% in value terms. Other sources of imports in 2002 included U.S.A., United Kingdom, Germany and Italy, which exported the following volumes and values of high-end stuffed toys to Japan in 2002:
|
Volume (units)
|
Value (¥) |
Average unit value (¥)
|
| U.S.A. |
275,896 |
184,865,000 |
670 |
| U.K. |
55,778 |
187,346,000 |
3,359 |
| Germany |
102,907 |
570,843,000 |
5,547 |
| Italy |
6,529 |
47,351,000 |
7,252 |
Source: Japan Trade Monthly
The fact that the average price of Chinese-made products is ¥177 gives some indication of how expensive stuffed toys imported from Europe and U.S.A. are. This is evidence of the polarized nature of demand in Japan. Small and attractively priced products are made cheaply in Asia and especially in China. The majority are designed in Japan, produced overseas (in Asia) in accordance with these designs, and although cheap are difficult to distinguish from products made in Japan. The products given as prizes at pachinko parlors and amusement arcades fall into this category. On the other hand, stuffed characters from American TV programs and films, toys made to closely resemble actual animals and function as pet substitutes and stuffed toys for adults designed to add to interiors are imported from Europe and North America. Famous German and Italian brand-name stuffed toys and Disney characters from U.S.A. are also imported in small quantities.
- Stuffed toys are bought by people of all ages, ranging from playthings for children to interior furnishings for adults. Although there are no accurate statistics on domestic production and imports’ share of the domestic market is unknown, imports are growing by the year in value terms, and are estimated to account for probably at least 90% of the market. Leading toy manufacturers have recently entered the market, thus intensifying competition, and creating a hit product requires considerable development capabilities. The market for products of this kind is also highly susceptible to booms, the lives of character-based products are short and the risks high. There is also considerable seasonal variation in demand, with demand being greater for stuffed toys as presents around the Christmas and New Year period.
- Although approximately 445,000 stuffed toys worth around ¥130 million were exported to destinations such as Hong Kong, U.S.A. and Taiwan in 2002, exports are insignificant compared with imports, both in terms of volume and value.
- While there are no import restrictions on stuffed toys, imports of products that infringe intellectual property rights such as copyrights (such as copyrights on Mickey Mouse, Donald Duck and Pinocchio) are prohibited. Products that contain feathers or other parts of animals covered by the Washington Convention must be accompanied by written import approval or confirmation from the Minister of Economy, Trade and Industry along with confirmation documents (such as export permits) issued by the appropriate authorities in the country of export when being cleared through customs.
- In Japan, the industry has a system called the “ST Mark” (security toy) scheme. This is a voluntary rather than compulsory scheme established by the Japan Toy Association in April 1971 based on EU standards. Products that pass the safety standards laid down under the constantly revised toy safety standards are given the ST Mark. In order to be awarded the ST Mark, a product must be inspected by a designated inspection body that has signed a mark use agreement with the Japan Toy Association. It is passes this inspection, it is issued with a number and may display the mark. Once approval has been granted, a product of the exactly same type may be labeled with the ST Mark for four years without undergoing further inspection. After four years, products must be re-inspected for renewal of approval, even if they are of the very same kind. Inspections test among other things for the flammability of fibers, color fastness and formalin. The stuffing is also checked to confirm that there is no hair mixed in, for example, while if the stuffing consists of granular materials, the seams are checked to see that they are strong enough to ensure that no stuffing comes out. As plastic eyes and noses may be swallowed by children aged under three, toys with such parts are checked to see that they do not come off when subjected to tests at regulation intensities. The ST Mark system also has arrangements for payment of damages in case of incidents.
- Enterprises party to an ST Mark use agreement with the Japan Toy Association take out product liability insurance on an individual basis.
- The stuffed toy market is an easy one to enter due to the comparative ease of doing business with wholesalers on a first-time basis. A large proportion of imports from Europe and North America are originals made by local manufacturers. Imports from Asian countries, however, are designed in Japan and manufactured overseas (in Asia), which requires planning and development capabilities and careful advance market research to ensure that a company is not left with large stocks of a product that fails to sell. Care is also required to avoid accidentally importing counterfeit goods, as such goods are instantly confiscated if discovered. Personal importing by individuals is permitted, but products that infringe intellectual property rights cannot be imported.
- While imports will probably account for the majority of the market in the future, there is likely to be a shift to other countries in Asia to avoid an over-reliance on imports from China.
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