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I know this is not gonna shock anybody.
China dominates the global toy market really Yelp last year US toy imports totaled 33 point five billion dollars.
That's three times the amount of toy exports.
What an unbalanced situation right could this -- ever be reversed.
One toy manufacturer connects is trying earlier this year it brought nearly.
All of its manufacturing.
Back to the US from China and now it has signed deals to export its products that it's making here.
To shine out with us now as the guys doing it Michael Harrison -- can't connects as CEO and president good to have you back and now we really -- the story because it just turns on its head the conventional wisdom that all toys are made in China and are sold here to the people in the US.
What made you make this decision because in the end you are -- businessman you're not gonna do anything stupid just for the principle of it.
Right now -- -- -- with -- -- and I'm glad to be able to bring this story to you in the audience here.
We made a decision because we know with a look around the world -- that China has a growing affluent community has a growing middle class cohort as well.
And that for us to be able to continue to grow internationally which is part of or building -- -- -- strategy -- -- worlds can slow all over the planet.
Of all the kids around the planet about a 150 million of the -- in the US but many live in China -- -- bring them those great products we make here over there.
So what are the Chinese kids like right now I know that you make certain.
Building toys and other products related to say -- example Angry Birds and and things are just it's -- so we think about within the Chinese marketplace the most downloaded -- in China is Angry Birds and -- the exclusive provider Vancouver is building sets.
Nintendo's used by hundreds of millions of people in China today and were the only ones that bring you Nintendo building sets.
And we're going to be bringing plants vs zombies next year which is also download a couple hundred million times in China so it's consistent with both -- international strategy.
And or manufacturing strategy and and and again our building worlds can slow -- at all costs are gonna hurt and I support.
It's fascinating that that children of all different cultures and kept plucking the same darn thing don't -- so.
It's how you live here but let's talk about the costs that -- found in here -- making something in China.
Well we have found is that the -- it's actually we're actually able to do things better here we've invested a lot of automation and efficiency.
And by having a shorter supply channel able to go -- -- market and we're actually able to make things for less than they cost by bring everything across the -- supply chain so.
We have the really the lowest prices in the industry in fact are things Rasual for example Wal-Mart and target here obviously we couldn't do that if we weren't.
Hitting the right price points and little to do that and then export those things attractive price points to international markets as well.
One of the keys -- what you've decided to do in getting your product into the hands of the Chinese consumer is that you are listed on -- mall correct.
Isn't that a -- -- use -- operation in China.
There really is as there used by about 600 million people a day in China.
It is the largest e-commerce platform in the country.
It is really the combination of sort of Amazon and eBay together you can envision it that way in China.
So to go direct to consumer and that way with our partners and -- now.
Really makes up for very powerful combination to be able to go right to -- the audience is and deliver the -- products made here over there.
Okay song gonna tell isn't that happened recently at where my my little girl was at camp emails me and says I regard to -- not -- -- to email soaring electronic she though he hasn't really -- -- really don't know she's she's really the let me tell if she's she wanted something called the rainbow loan that I hear another person -- this kid is it a completely different camps and I need to rainbow look now.
It's most important not just to be where kids are today but where they're going to be what's the next top trended toys that you're jumping on that you believe Chinese children are going to absolutely -- You know for in terms of trends I -- a fair amount of stuff happening beyond green balloon which by the way we Wii bowling yesterday as well so we made our first -- -- -- Wear one today believe we have some bracelets as well the other day about all.
-- outside -- -- -- we we continue to see in the world of the digital world being brought to real life as a continuing -- so I think what you'll start to see.
Is multiplayer games.
Brought to life in the real world things that are on Xbox now -- that a Beagle forward and I see a good thing happening frankly would -- for an outdoor toys.
There's a lot of -- things built around both for boys and girls.
On Hunger Games and those other related patterns and I think you're gonna start to see in China because -- movies really haven't done global and part of the reason were so successful his global like -- partners.
And the reason Hasbro I think we'll be successful is well is because of those kinds of trends that they can take advantage of.
Companies -- connects they're bringing manufacturing back here to the US and of course selling to China what an interesting story Michael thank you for joining -- Alessio.
Michael every muscle as revealed -- president over connects -- --
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