Rich material supply and synergy among makers reinforce the city’s status as China’s main sourcing center for the line.
Thriving on abundant material resources and cooperation among industry players, Wenzhou has become the leading production center in China for outdoor playground equipment.
This city in Zhejiang province is home to more than 1,000 plastic providers, including LLDPE specialists. The material is mainly used for the slides, seats, walls and roofs. About 500 plastic-processing and 800 molding companies are also situated within the hub.
In addition, the area is just a stone’s throw away from the city of Yongkang, where metal parts and components can be easily procured.
Wenzhou benefits from the partnerships established by its industry players as well. To ease spending for example, a number of local manufacturers are teaming up in purchasing raw materials. This strategy enables suppliers to source inputs in large volume, helping them obtain a markdown in rates.
Some companies join forces for participation in international trade shows to cut travelling and marketing expenses.
Further, a collaboration of Wenzhou makers initiated the implementation of China’s first national standard for playground equipment. Enacted in 2011, this set of regulations outlines the steps businesses need to take in ensuring product quality toward meeting stricter international safety requirements. The directive, however, covers only releases without electronic features.
The city is home to approximately 400 suppliers of outdoor playground equipment, about 70 percent of which are located in the town of Qiaoxia in Yongjia county. These companies have established an estimated 1,200 sales offices in China, allowing them to command between 30 and 40 percent of the country’s total export volume. The EU, the US, the Middle East, Australia and Southeast Asia are the major destinations.
The hub’s aggregate yearly revenue exceeds $320 million. According to the Wenzhou Teaching Aids and Toys Industrial Association, more than 30 of the enterprises have annual sales of at least $1.6 million. These include four companies generating nearly $8 million and one hitting $15.8 million every year.
All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
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