WSJ story about Chinese Toy Companies not doing that well. Basically razor thin profit margins and increased costs due to testing that their customers are not absorbing are causing problems. Their also seems to be a feeling of betrayal on both sides between American Toy Companies and the Chinese suppliers (translation - finger pointing). The story also mentions how some companies are moving production to Vietnam because of lower cost.

Tennis Shoe is a great example of following the labor cost. First it was off shored to Japan. Then Korea. Then Taiwan. Then China and Indonesia. Now Vietnam.

Labels: China Lead