Q & A >> Russ Hornsby

Editor's note: Russ Hornsby is chief executive of toymakers Cepia L.L.C., which makes Zhu Zhu Pets, one of the must-have toys this Christmas. He is based at the company's factory in Shantou, Guangdong province. Excerpts:

Zhu Zhu Pets have been extremely popular for the last two years. Why do you think they have been so successful?

A: (A popular toy) doesn't have to be a high-tech device it can be something as simple as what you have in plain sight every day. The key is, think about everything you touch in life. If you pick up an iPad and you're pushing on the buttons, it's intuitive. It's so intuitive that maybe a baby can do the same thing. A Zhu Zhu Pet is an intuitive product and the key to our success is making it so that it is very unique in its behavior.

How are you trying to change the image of China's toymakers?

A: We change (attitudes) by basically performing and by eliminating the problems. Every company is going to have quality challenges; it's impossible not to when you are producing goods. People in this country work very hard, they follow the rules. It's very difficult for anyone to take anything away from Chinese manufacturers. They are diligent. Our job is to work with (partner) factories to ensure that (safety problems) are mitigated.

I'm really pro on everything, but I had this same conversation with the deputy director of the (Consumer Product Safety Commission) in the US and I said, 'You need to come to China. You need to go to these factories and look at what's going on'. The people here (China) are very serious about quality. China is doing a really good job.

How did you choose your partner factories in China?

A: Quality, reliability and creative drive. We look for that esprit de corp, the passion that they have to value engineer their product so that the consumers can afford it.

Compared to Vietnam and India, China's production edge is in decline. What are China's advantages?

A: It's supply chain. The supply chain in Shenzhen, Guangzhou and the greater Guangdong area is so vast and so rich. It's competitive but one of the critical elements is stability. China keeps everything stable. I'm very comfortable here. It's very safe here.

What lies ahead for Cepia L.L.C?

A: We're adding new toys next year. We're bringing new lines out in what we call the "Zhuniverse". We're making two motion pictures (with Global Digital Creations Holdings Ltd, headquartered in Hong Kong). So we're in the process of expanding into that arena. We're going to continue to invest and we'll have GDC help us build a true Zhu Zhu Pets production for television. I want us to do animation that's a little bit different.

Russ Hornsby was talking to Gao Qihui.