major supplier of toys to Walmart and Target is accelerating its shift out of China as it reshapes production amid President Donald Trump's intensifying trade war with the country. California-based MGA Entertainment, which makes its Bratz and L.O.
L. Surprise! dolls and other toys primarily in China, is taking steps to move 40 percent of its manufacturing to India, Vietnam and Indonesia within six or so months, up from around 10 percent to 15 percent currently, CEO Isaac Larian said in an interview. Roughly 60 percent of the company's manufacturing will still be in China after the speedier shift to India, Vietnam and Indonesia in the coming months, Larian said.
He noted that he may have to raise wholesale prices on China-made products to protect his company's already-thin profit margins. "It's going to hurt the consumer because we have to pass the extra cost to the retailer," he said. MGA's plans, first reported by Reuters, show how US makers of everyday items, which rely heavily on Chinese factories for their products, are adjusting as quickly as possible as a result of Trump's trade war with China-- and hiking prices to cover the cost of tariffs on remaining China-made products.
Walmart and Target did not immediately return messages seeking comment. With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape. By registering, you.
