Top Biz News

Factories broaden Santa's horizons after spending freeze

By Yu Tianyu (China Daily)
Updated: 2009-12-25 07:47

Factories broaden Santa's horizons after spending freeze
Li Hui, 24, buys a toy Santa Claus at the Tianyi market in downtown Beijing yesterday. [China Daily]

Christmas may not be a Chinese festival but Santa Claus has become well acquainted with the country in recent years - especially as a large proportion of all the toys he puts under trees are made here.

Yiwu, a city in Zhejiang province, is the world's largest manufacturing base for Christmas-themed products and responsible for about 70 percent of the United States market, as well as 40 percent in Europe.

But although the financial crisis has done little to damage Santa Claus' image, it has had a knock-on effect to Chinese industry. Belts tightened due to the chilly economic climate have stayed that way in the US and Europe ahead of the festive period.

"Because of the gloomy economy I don't want to spend too much on decorations and presents, 80 to 100 pounds ($130 to $160) is enough," said Dominic Brown, a London-based journalist, who usually spends 200 pounds during the holidays.

Households in the US were expected to splash out an average of only $390 on gifts this Christmas, down on last year's $418, according to a report by independent research company Conference Board.

The Zhejiang Yiwu Christmas Gift Industrial Association estimated Christmas product exports had fallen at least 20 percent this year.

"We have seen a decline in orders of Christmas gifts from overseas, but it is very slight," said Wang Ling, manager of Zaiye Craft Factory in Yiwu, who said the company has promoted its wares in more European countries to make up the shortfall in demand.

Pan Yong, of Fuzhou Deyi Art and Craft Co Ltd in Fujian province, said his firm was distributing more products to Brazil, Argentina, Russia and Southeast Asia.

Meanwhile, the "bulk of customers for Yiwu Spaceflight Craftwork Co are now in South America", said boss Huang Yiming. Huang said he expects company exports to South America to jump 30 percent this year, representing $5 million in sales.

Zhejiang Yuemei Group is exploring African markets, its president Xu Zhiming told China Daily, adding that his company's second half sales had grown by more than 50 percent year on year.

Guangdong province, another key Christmas manufacturing base, recorded exports of 19,000 tons to Association of South East Asian Nations between January and August, a hike of 250 percent on last year.

In the US and Europe, total export volumes for the same period fell 25 percent and 14 percent respectively.