When it comes to the complex Chinese toy market, two places come to mind: the globally famous Yiwu market, which is known for its wide variety of goods, and the toy-centric toy manufacturing center of Chenghai in Shantou, which has been at the forefront of taking Chinese toys to the world. This article compares the two options from multiple dimensions—transportation cost, efficiency, language, professionalism, market familiarity, charging methods and market information. The purpose of this analysis is to help you save money on buying toys in China and to help you save time on confirming orders.
Table of Contents
- Transport Cost
- Working Efficiency
- Language
- Professionalism
- Market Familiarity
- Fee Transparency
- Market Information
Transport Cost
As we all know, Yiwu is the world’s largest wholesale market for small commodities, while Chenghai, Shantou is the centre of China’s toy production with 77% of toy factories. The two places are 2,000 km apart, which means that if you choose to buy toys through a Yiwu sourcing agent, your shipment will need to bear an additional 2,000 km of transport costs.
Working Efficiency
The Yiwu sourcing model is inefficient in the confirmation of samples. As the purchasing agent and Shantou factory are 2000km apart, it takes 4-5 days for the sample to be transported by express, and 6-7 days for the bulk productions to be finished and loaded in Yiwu, which seriously affects the time of product launching.
Time is money, efficiency is life. In the highly competitive market environment, a week’s delay in putting the products on the shelves may cause irreparable losses. In the case of Christmas toys, for example, missing the Christmas selling season can result in sales loss of up to 30%.
In addition, purchasing agents are unable to update the production status of orders in real time for in-production checks. This is a serious drawback for some project orders. Because they are often more demanding, they require strict quality control during the production process. And the inability to track order production in real time means that problems cannot be identified in time and adjusted accordingly.
Working with Shantou toys supplier can easily avoid these problems. It is close to the factory, only 1 hour away. You can modify the sample multiple times on the same day and even invite a face-to-face video conference with the factory. This allows you to view sample progress in real time, ensuring that the product meets your needs quickly and accurately.
Language
Language communication is an important difference between Yiwu sourcing company and Shantou toys company. China is a clan-focused and multicultural country. Although Mandarin is the official language, there are unique dialects in various regions, such as Cantonese, Shanghainese and Teochew dialect.
In Yiwu, purchasing staff mainly use Mandarin to communicate with factories. Although most factory employees can also understand Mandarin, there are inevitably some barriers to communication due to the lack of intimacy of dialectal communication. This can lead to misinterpretation of information, reduced trust and weakened bargaining power.
In contrast, shantou toys supplier has a unique language advantage. Most of the company’s employees come from Chenghai, Shantou, and are proficient in Teochew. Communicating with factories in their native language can quickly build trust and bring them closer to each other. In the case of smoother communication, the company can more deeply understand the factory’s production capacity, product quality and inventory, so as to obtain more favourable prices, more flexible delivery time and more convenient payment methods.
Professionalism
Yiwu sourcing office usually involves all kinds of products, from toys to tableware and even large-scale machinery. This diversified business model limits the depth of specialisation in specific areas. In contrast, Shantou toys company focuses on the field of toys and has more professional knowledge and experience accumulation.
The professional advantages are reflected in the following aspects:
In-depth knowledge of the toy industry
Shantou toys company has been focusing on the toys industry for a long time and has in-depth knowledge of the toys market trend, product design, production process, quality standards, etc., which enables us to provide more professional sourcing advice and services to our customers.
Familiar with toy testing and regulations
Shantou toys company is familiar with toys related testing standards and regulatory requirements, such as CPC, ASTM, EN71, EN62115, RoHS, PAHs, FCC, RED, etc. We are able to ensure that our products comply with the safety standards of the target market, and to avoid legal risks for our customers.
A customer once told us that the price of a certain product provided by his Yiwu sourcing agent was much lower than our offer. We verified that the low price of the product was due to the fact that it had not passed the local testing standards and there was a risk that it would be intercepted by the customs or fined by the market regulator.
Choosing a professional toys company can help you avoid sourcing risks, ensure product quality and legal compliance, and ultimately achieve greater market success.
Provide customised service
Shantou toys company can provide customised product development, production and sourcing services to meet the diversified needs of our customers according to their individual requirements.
Market Familiarity
Although Yiwu Sourcing can help you contact some factories, it is far from enough. Even if the products look the same, there are huge differences in material, function and price between different factories. Even if the products are exactly the same, the price of factory A may be a bit higher than that of factory B. Why is this?
It’s like different retailers, some like to make more profit with higher prices, while others are looking for thin margins. If you are not familiar with the factories, you are likely to source overpriced products, even at factory wholesale prices. This is one of the biggest problems faced by Yiwu sourcing agent because they are not familiar with the factories in Chenghai.
Compared with Yiwu sourcing, our market familiarity is reflected in the following aspects.
In-depth knowledge of factories: We have established long-term and stable relationships with many toy factories, and we know each factory’s product line, production capacity, and quality control very well.
Sharp insight into market price: We always pay attention to the market dynamics, can accurately grasp the price trend of toy products, to help you avoid purchasing price is too high.
Rich industry experience: we have many years of experience in the toy industry, can provide you with professional procurement advice and services to help you avoid procurement risks.
Fee Transparency
Yiwu purchasing agent seems simple, but hidden mysteries. A survey shows that its average hidden costs up to 10%. On the surface, the agent charges by the amount of the order or time, but in fact, they may be through various means to obtain additional benefits. For example, they may imply factories to raise the sales price and ask customers to return a certain percentage of commission after the order is completed. In this way, the customer not only has to pay the agent’s fee, but also has to bear the additional costs from the factory, which ultimately leads to a significant increase in purchasing costs.
An example:
Many purchasing agents use the guise of “Free purchase commission for first order” to attract customers to inquire. But in the actual operation of the process, they will be disguised through a variety of means to collect fees, such as raising the price of goods, recommending the designated logistics company, etc., which ultimately leads to the customer’s procurement costs far more than expected.
In contrast, Shantou toys supplier adopts a transparent charging method by adding fixed profit to the products. This way it is easy for you to compare the prices of different suppliers and you don’t need to pay any extra fees after completing the order. This not only reduces your purchasing cost, but also enables you to control your budget more clearly.
Market Information
Compared to Yiwu sourcing agents, Shantou toys company has the unique geographical advantage of being located in a toy production base surrounded by thousands of toy factories. This enables toys company to get the latest toy information and trends in the first time, to understand the market trend and seize the first opportunity.
Information asymmetry is one of the key factors in business competition. In Yiwu, purchasing agents need to collect information from a large number of suppliers, and there are often problems such as lagging information and difficulty in distinguishing the authenticity. Shantou toys suppliers, on the other hand, can directly interface with factories to obtain first-hand information and ensure the accuracy and timeliness of information.
Being one step ahead means grabbing market share. When you are able to learn the information of new toys in the first time, you can make decisions quickly to prepare and promote the new products to the market and seize the market share of your competitors.
On the contrary, if the information lags behind, it may lead to the procurement of outdated toys, which not only can not meet the market demand, but also cause inventory backlog, capital turnover difficulties and other problems, and ultimately affect the profitability of enterprises.
All in all, whether you choose Yiwu sourcing agent or Shantou toys company depends on your sourcing needs and goals. If you are purchasing a small quantity and have a wide range of products, you can consider contacting a Yiwu agent. They can help you to purchase various products in Yiwu wholesale market, such as 20pcs remote control cars and 15pcs kitchen toys.
However, if you want to purchase a large quantity of toys or need to customise the products, you are recommended to contact a professional Shantou toys company. It specialises in toys and have more professional knowledge and experience. They can provide you with better quality products and services, including:
In-depth understanding of the toy industry to provide professional sourcing advice and services.
Familiar with toy testing and regulations to ensure products meet the safety standards of target markets.
Providing customised services to meet your individual needs.
Choosing a professional toys company, you can get the following advantages:
Lower price: It cooperates with factories directly without invisible charges, which can offer you more favourable price.
Faster delivery: Shantou toys supplier is located in the toy production base, which can provide you with faster delivery.
More convenient service: It can provide you with one-stop service, including purchasing, transport, customs declaration, customs clearance and so on.
More timely market information: Shantou toys company is located in the centre of toys industry, which can provide you with the latest and most accurate market information to help you make better decisions.
Corleone Du
Hi, I’m Corleone, the marketing manager of Deb Toys. I’ve been in the toy industry since 2018, helping 300+ clients source toys from China. I’ll be regularly sharing my industry knowledge to help you gain an advantage in future market competition.
Corleone Du
Hi, I’m Corleone, the marketing manager of Deb Toys. I’ve been in the toy industry since 2018, helping 300+ clients source toys from China. I’ll be regularly sharing my industry knowledge to help you gain an advantage in future market competition.