Shop Talk
Retailers, consumers and prices
Check Out Line: End of “cheap” labor in China?
Check out workers in China angling for a bigger slice of the economic pie.
The labor unrest that began in China’s richer areas among foreign firms is now spreading to poorer, interior regions, as a new generation of workers seek a bigger portion of the nation’s growing wealth. What impact could that have on companies that have flocked over the decades to China, drawn by the low manufacturing and labor costs, as well as one of the world’s biggest and fastest growing economies?
Japanese automaker Honda and iPhone maker Foxconn International have dealt with high-profile strikes recently, and now a Taiwanese sports goods supplier and a Japanese sewing machine maker, both some distance from China’s wealthier regions around Hong Kong and Shanghai, have seen worker strikes. Resolutions of strikes at Honda and Foxxconn resulted in pay raises of 66 percent and 20 percent, respectively.
The burst of strikes and work actions is a worry for China’s ruling Communist Party, which has long discouraged worker action and punished protesters. However, a senior China trade official said the country’s rising labor costs would not deter foreign investors because policies to boost domestic consumption offer a new reason for them to seek profits.
Honda wants to restart its auto production in China, while Foxconn hopes to raise prices to offset higher wages. That could affect the consumer if prices of the final products rise in step.
Foreign investors have been lulled into a false sense of security about China’s labor force and is learning otherwise now, some analysts have said. Others argue labor unrest is good for China and ultimately the world.
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Mattel launches My Meebas as Barbie stumbles
What would Mattel wish for if it had one wish to make? The launch of the toy giant’s “My Meebas” points to one possibility — better fortunes for its girl’s toy business, as Barbie sales continue to face trouble.
Mattel launched “My Meebas” — a toy for girls aged 6 to 12 that houses a plush “Meeba” in a plastic tube, which serves as a gaming device with a movable LCD screen.
The toy is aimed at the latest generation of girls, who like plush toys but are also into electronic games, Mattel said. The launch comes at a time when Mattel is struggling to revive sales in its girl’s division, best known for its iconic Barbie dolls. Sales of Barbie have suffered in past quarters, as other toys such as “Hannah Montana” and Bratz steal market share.
The “Meebas”, also made in China like many other toys, will retail for $19.99, while a Barbie “Top Model” doll can be bought for $14.97 at Wal-Mart. The toys have gone through extensive checks, Mattel said, following the spate of recalls last year.
With a “Meeba,” the idea is for a user to buy the toy as they make a wish, and then go through seven levels of game play, or over 20 activities, which could take anywhere from seven to 12 hours, according to Mattel.
The LCD screen can be moved up and down the side of the tube, showing how the “Meeba” grows as game progresses.
Once all activities are completed, the tube pops open, and the user can pull out their ”Meeba” — in a sign meant to signify that the user’s wish has finally been granted.
My younger sister found a tube with the twins in it. They were fuzzy pink and one had pink lips with its tongue hanging out and the other had blue lips and showing it’s teeth.
Check Out Line: More for the Man’s Wardrobe
Check out new offerings for men from DKNY.
Fashion House Donna Karan International reached a licensing deal with Liz Claiborne to create a new line of men’s sportswear for the United States and Canada.
The collection, to include knits, trousers, blazers and coats, will be targeted to the “better” segment, with articles priced from $59.50 to $595. It will be available in department stores in fall of this year.
The move will help the fashion house named for Karan (pictured) reach a wider audience as other designers such as Vera Wang have partnered with retailers on clothing lines.
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