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The Impact of Toy Recalls on Chinese Manufacturers: A Crisis Management Perspective

On August 14, 2007, a wave of toy recalls impacted over 10,000 factories in China, revealing the vulnerability of the toy manufacturing industry. Millions of toys, including 7.1 million Polly Pocket toys and Barbie playsets, were recalled due to safety concerns, primarily excessive lead levels. Companies like Lee Der Toy Company and Le Qu Toys faced severe consequences, including bankruptcies and even tragic owner suicides. In contrast, Early Light Industrial Co., Ltd. successfully improved their quality control processes, avoiding catastrophic losses. This situation highlights the critical need for effective crisis management and quality supervision in the industry.

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The Impact of Toy Recalls on Chinese Manufacturers: A Crisis Management Perspective

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Presentation Transcript

  1. Toys Recall

  2. 10,000 factories in China 75% are made in China Toys manufactured in China

  3. On August 14, 2007, recalled products made in China include: 7.1 million Polly Pocket toys produced before November 2006; 600,000 Barbie and Tanner Playsets; 1 million Doggie Daycare, Shonen Jump's One Piece and thousands of Batman Manga toys Recalls in 2007

  4. Lee Der Toy Company Located in Foshan, Guangdong Producing toys for Mattel 967,000 pieces of toys were recalled Ending The owner suicides Impact on Chinese producers

  5. Le QuToys Located in Dongguan, Guangdong Producing OEM toys and own brands Fail to manage recalls because of lack of experiences Ending Bankrupt Impact on Chinese producers

  6. Early Light Industrial Co., Ltd (ELI) Found in Hong Kong Suffering from the problem of excessive lead levels in paint Realized the problem and improved before 2007 Ending Possible losses are avoided, survive! Impact on Chinese producers

  7. Looking for the shortage of the management system A specific quality supervise department can be established A right attitude toward the crisis How to deal with the crisis of recall

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