Europe, U.S. Key Destinations

For Taiwan-made BB Guns

The United States, Europe and Japan remain the key destinations for Taiwan-made BB guns, made of ABS, aluminum and other materials. Export sales in 2006 were slightly behind that of the year before, partly because of the growing price competition from mainland China and partly because of the global economic slowdown in general.

Prices of raw materials have soared between 20 and 40 percent over the last few years, but Taiwan manufacturers did not raise export quotations, fearing that foreign orders from price-conscious buyers could possibly be shifted to mainland China.

While a great many Taiwan's toy manufacturers have moved offshore for continued production, taking advantage of the lower land and labor costs in mainland China and some neighboring Southeast Asian countries, some leading makers choose to stay in Taiwan and enhance their R&D capabilities. Attempts are made to avoid price competition with their Chinese mainland counterparts, but instead concentrate on developing  higher-end products for customers' selection.

Having been in operations for some 15 years, Unicorn Hobby Corporation has been manufacturing and exporting top-end air soft guns (BB guns) to mainly industrialized nations, including Japan, Europe and the United States.

The United States is the biggest export destination, accounting for 60 percent of Unicorn's total shipment, followed by Europe at 15 percent and Japan at 15 percent. "This market share has remained almost the same over the last few years," added Grace Lee, sales manager of Unicorn Hobby Corporation, based in Taipei, capital of Taiwan.

Lee said export performance of her company in 2006 was slightly behind that of 2005, attributing the less satisfactory sales to the delayed introduction of new models of air soft guns in 2006. The BB guns are classified into long guns, gas revolver and electric blowback pistol operated by battery. They are designed for teenagers and adults.

These guns are made of ABS, aluminum and other materials and the prices have risen by 20 to 30 percent. "Despite these price hikes of raw materials, we did not raise our export quotations mainly because our customers are well-established," said the sales manager.

Technical capability

The company has a strong R&D department composed of some 10 electric and mechanical engineers. Each year new models are turned out from this department.

The sales manager said Unicorn Hobby Corporation every year only participates in the Hong Kong Toys and Games Fair organized by the Hong Kong Trade Development Council (HKTDC). "We take part in the show mainly for image building, not for product selling," said Grace Lee. "Another purpose is of course is to gather information on global market trend."

Spring Time continues output

More than 100 models of BB guns have been produced by Spring Time (Taiwan) Inc. over the last 20 years. And more new or modified products will continue to be developed by the company, located in Taipei.

These BB guns, made of ABS, zinc and aluminum, are designed for teenagers above 14 years old and older people, according to Erin Tsai, sales manager of Spring Time (Taiwan) Inc. The BB guns turned out by Spring Time are of two types: electric and gas. "When batteries and gas are used up, they have to be re-charged," the sales manager said.

Spring Time's BB guns are exported all over the world, with Europe as the biggest destination, accounting for 50 percent of its total shipment, followed by the United States at 30 percent, with the remaining 20 percent going to Asia, Latin America and other countries.

The sales manager said her company suffered about five percent drop in export in the first 10 months of 2006, partly because of the growing competition from mainland China and partly because of the general global economic slowdown. Erin Tsai stated that South Korea poses some degree of competition to Taiwan in terms of prices, but Taiwan manufacturers still maintain quality lead.

She said prices of raw materials have soared by 30 to 40 percent over the last few years. "But we did not raise our export prices, fearing that orders might be diverted to our competitors who are producing low-priced items," acknowledged the sales manager.