Christmas cheer becomes more expensive as costs rise

Christmas goods' factories and retail outlets in Yiwu, Zhejiang province, get ready for the festival. [Photo/Agencies]

"The price of cartons is up by 70 percent and that of plastic up by 50 percent. As the administrative bodies are raising their requirements on electronic product quality, the products that are not eco-friendly, for example those that contain mercury, cannot be put into use now," he said.

"So the cost of electronic parts has gone up by 80 percent. Even though we have raised our prices, the profit margin is now much lower than previous years, which is less than 10 percent," he said.

Even though the profit margin is less lucrative, the company profits have not been impaired, mostly because retail orders have increased quite significantly this year, thanks to the proliferation of internet and online shopping, Luo said.