The Chinese mainland's toy exports totalled US$5.67 billion last year and were made by 4,209 manufacturers.

But the large amount of exports came through low prices and bulk quantities with little technology content, such as with soft toys.

Song Zhenghuan - president of Goodbaby Child Products, based in Kunshan in Jiangsu Province - told China Daily that the company's products have remained bestsellers in China and the US because the company attaches great importance to technological development and innovation.

The company has 1,100 Chinese patents and about 30 in other countries.

Goodbaby makes roughly one-third of the pushchairs or baby strollers sold in the US and more than half of the children's bicycles. They are sold under brand names such as Geoby and Cosco.

Goodbaby has licensing agreements with Disney and manufacturing relationships with Wal-Mart, Sears and other US companies.

In China, Goodbaby has a market share of 80 per cent or more.

China accounted for only 35 per cent of Goodbaby's US$125 million in sales last year.

Song estimated that the firm's foreign business will grow by 30 per cent this year and business in China will grow even faster.

He said Goodbaby is trying to head off competition in China with a retail strategy designed to create customers who will raise their children with Goodbaby products.

(China Daily June 20, 2002)