Q: How are the recent recalls going to impact our industry? Will consumers become more concerned about products made in China (even if they aren't toys) and will this change shopping habits?

Staff -- Kids Today, 10/1/2007 12:00:00 AM

Michael Schaul, Lone Star Baby & Kids, Dallas, Fort Worth

A: The recent recalls will have a negative effect not only in our industry but all industries that import from Third World countries. The problem may be broader than just toys. Some manufacturers are taking the lead by retesting their products and providing documentation to their retailers and end-customers and I commend them for this. Our consumers who are aware of the problem are asking us for assurances that the products we sell are safe and have been properly tested. This may continue for some time until the public is satisfied that these products are safe. However, if more products are found outside the toy industry to have this same problem, more testing and government intervention are assured, which will have a negative effect on the price of these imports.

Doug Tritton, Stork Land, Wichita Falls, Texas

A: Consumers are becoming concerned with Chinese products but what may have an even bigger impact on this industry is retailers losing confidence in the quality and safety of products from China. Even when manufacturers handle product recalls directly, they still have a negative impact on the retailer.

Karen Scott, One Step Ahead/Leaps and Bounds, Lake Bluff, Ill.

A: Recent surveys have indicated upwards of 40% of consumers are actively concerned with the safety of toys from China and 'made in the USA' toys have seen a significant increase in sales.

I do think the recalls will have some effect on purchasing activity for the holidays in that some consumers will avoid toys made in China and opt for toys made in the USA or Europe. Apparel and electronics may also benefit. How much of a dampening effect on China-imported toys depends on whether there are additional recalls as manufacturers continue to test their product lines.

Jami Meyers, Jami B'z, Scottsdale, Ariz.

A: We don't carry toys so we have not had a direct response to that very concerning topic but I will share with you the domino effect that I believe this will have on our industry as a whole. Over the past few weeks I have had numerous moms ask where product is made and if the particular item they are interested in is made in China. One mother flat out told me I should only show her product made in the USA. I have to believe consumers will be more willing to pay a higher price for products made in the USA, too. I think the impact on the toy industry has already crossed over to the furniture industry. Hopefully this will help secure the jobs people have here in the states.

Sandy Buttrill, Kidspace, Amarillo, Texas

A: Although we don't carry toys, we sell furniture made in China. Of course, it is extremely important to us that the furniture we sell be lead free and comply with all U.S. safety standards. Just before ABC, we received a notice from LaJobi stating that all of their products are manufactured lead free. I have written a letter to every manufacturer we buy from requesting certification that all of their products are manufactured lead free and comply with U.S. safety regulations.

I feel the majority of the U.S. consumers don't feel it is their responsibility to question safety potential regarding their purchases. Consumers expect the total responsibility to fall on the stores, the manufacturers and even our government to make, supervise and enforce safety standards regarding products. Recalls have become so common consumers are becoming complacent. Since they think safety issues are our responsibility or manufacturers,' we must exercise due diligence.

I don't think consumers will buy less Chinese products but they will hold the stores and manufactures responsible because the bottom line to most consumers is the lowest price.

Ali Wing, Giggle, New York

A: We're fielding parent questions daily. And while not every one is openly changing their buying habits, most are actively evaluating it. Some are looking to replace product with items that are either "organic" or "not made in China" or "plastic, paint and/or magnet-free."

This trend toward less toxic/more natural/organic/eco has certainly been gaining momentum overall prior to this period of safety issues and recalls. Of course, the barrage of issues surrounding toys and bottles certainly has intensified the trend and will likely continue to do so.

The unknown is still how enduring this effect will be on the industry. Bottom line, particularly in the U.S., the bar is always being raised for better and better products. However, to date, the expectation has also been that a continuum of increased value has not been contrary to expected reduced prices over time. History of manufacturing today has been that there's always the "next horizon" for manufacturing that will enable lowered prices while gadgets and choices keep increasing. While there are certainly many lower cost regions in the world today, few if any can come near the fairly highly sophisticated standards of China (or near it) today or anytime soon.

Of course, organizations like Mattel have some of the best standards in the industry. So problems experienced at the levels that have been exposed are scary for us all. And while I wholeheartedly take seriously and am concerned about the safety failures experienced by these large, established companies, most in the industry know that if that's possible for them with as many resources as they have, just imagine what's true for all of the smaller manufacturers.

I think the past months will and should absolutely change the industry. It should result in higher standards to ensure protection, and at a minimum, a higher level of consciousness. Practically speaking, however, I think that as the dust settles, the currently 80% of U.S. toys now made in China will not vary dramatically — except as dictated by changing economics of global manufacturing for two primary reasons. First, like all countries, China has flaws for sure. However, unlike other countries, China has become a global powerhouse in manufacturing. Some of the best manufacturers in the world are in China and/or operating in China, and with that some of the best standards. Second, price matters. People will pay more for increased standards, the question is how much more and how many people? That remains a question to be answered by the many betting on more green approach to products.

This could be good news for all of us. Certainly from a giggle perspective, as we have always focused on healthier, safer products since our inception, there's no better category to constantly be raising the standard than for products designed for our babies and children.

One of the greatest complexities in all of this will be obtaining agreement, let alone ensuring consumer clarity, on the standards. While few need help understanding lead in paint is bad, just as few really understand much of the organic/eco/nontoxic/natural standards. A great example of this is the current debate in BPA-free bottles (or other plastics). Saying BPA is bad or at least potentially bad isn't the same as arguing certain other materials are better. Are they? We don't know yet. Not only is there a ton of consumer confusion in all of this, there's also scientific debate over very well-settled "accepted practices." In my eyes, this will be the driver in the long-term change in standards, and it is a complex one that will not happen overnight.