- Letter from CEO
Greetings from Leona 2016
The year is ending and big festivals are coming again. I hope that everybody has done ok in 2016.
This is the 10th year after our 2006 company re-structuring. Things are happening and we are facing a crossroads in our development again.
The 2016 highlights:
1) As the super strong USD continued, we had to work extra hard with our non-American customers and our own cost controls. We are familiar with forex fluctuations. However, if it is too hard and fast, everybody will panic. We are helping some customers with their currency loss, in some ways.
2) On the other hand, there may have been a major misunderstanding about the RMB devaluation. The effects of RMB devaluation have been multi-dimensional. It was beneficial for some local operating costs, but detrimental to our asset value and material importing costs. The Chinese government is not prepared to boost exports at all costs. Internally, China has been pressing for expensive green manufacturing. Recently, the new scrutiny has fallen on the paper industry. Many small paper suppliers were put out of business. Our printing material costs have gone up for 60% since October. To us, the plastic, paper and salary costs never reversed in China and Vietnam! The uptrend is very clear and firm!
3) No fireworks this year – We ended on a low note with a double digit drop in turnover in 2016! We lost stars and current stars were not playing brightly.
To our relief, we also see vibrant development and discussion of new projects ahead. The downturn appeared to be down to the smart moves of our customers against the headwind, instead of any pessimistic recessionary policy.
Almost all of our customers who are interested in the China market are inching their way along. Our advice is as always: please try to localise your product features, as you may not want to spend that kind of time for this wonderful market to understand your originality.
4) We have taken a new journey to explore E-commerce in 2016. The effort began with a more responsive multi-lingual website, to enable our interaction and information dissemination with the larger public. We are nervously searching our way. Hopefully, our new website can be available in spring 2017. Your coming response will determine how far we will go. At the end of the day, we are selling our ENGINEERING & PRODUCTION CAPABILITIES, not product marketing or brandings. Please allow us to take each careful step. In 2016, particular efforts have been made to adapt ourselves to the new normal. But still we will send out our CNY red packets by hand, not online.
5) When we were learning about such things as e-commerce and social media, my team first chose to undertake some kind of education on Facebook about our manufacturing activities taking place every day in our production chain. Personally, I am inspired and long to see this project go on. That is WHAT WE ARE.
Toys and play have also been considered a kind of education since ancient times. Why does the world need TOYS? How are people doing with toys nowadays?
The 2017 outlook:
One of our key markets will have a DIFFERENT president. His presidency may present unique challenges to us, given all the “proposals” made during his campaign. In fact , life could be pretty boring if we were all the same.
Brexit has not cost us much yet.
It is hard to tell how we will cushion our business slowdown, which is not easy but also not that alien to us. We have weathered similar storms well before. To learn to sail with the digital tide may help to diversify products and save operation costs. However, 2017 will not be our harvest time.
While everybody says the manufacturing business is bones and no meat and is heading towards a dead end, we strongly believe that being professional in what we are good at can let us shine around some corners. Nobody can survive alone. When everything seems so uncertain, our strong sense of trust with all key partners makes our day!
☆ ╱╲ ╱╲ ☆ ☆ ☆
╱╳+▲╱ ╲ ╱╲ ☆ ☆
╱╱ ◢◣+ ╳ ╲ ☆
╱ +◢█◣ ／ ╲☆ ☆
☆ ◢██◣ 聖誕及新年快樂 Wish U Merry Christmas & Happy New Year
___▂▂█▂▂__メリークリスマス & 明けましておめでとうございます!