Mattel outsources manufacturing to Indonesia, Malaysia, Thailand, Mexico, Ireland and China. Most outsourcing occurs through China, which accounts for 65% of Mattel's total production. Mattel has a plant in the United States and Ireland, with borings in Mexico and Asian countries. Mattel uses these in-house production facilities for about half of its production, which is relatively high compared to Hasbro which uses almost no in-house production. The half produced by factories not owned by Mattel are required to operate under Vendors Operation Asia (VOA) in order to maintain production standards and Mattel's relationships with the Asian government. This is to keep up with the ever-changing toy market which has a life cycle of approximately one to two years or less. Mattel carries functional and innovative products that it offers mainly to the United States with 36%, Europe with 29% and then Asia with 24% of the toy market with Asia and Latin America in tilt. Mattel holds the largest share of the global toy market at 6%. There is a trend that consumers are “aging younger” as technology develops. The demand for high-tech toys and video games is growing. In recent years, Mattel has encountered problems with product recalls stemming from manufacturers in China that use lead-based paint and also product design errors. The relationships that Mattel has with these supervised manufacturers have become a problem because innovative products have such fluctuating demand that suppliers are not fully utilized and are not satisfied. Mattel places a great need for lower prices thanks to warehouses becoming the main suppliers. Labor costs are also rising in China, which conflicts with Mattel's demand for low-priced paper makers...... trained in employee practices and product quality. Mattel needs to be responsive to the market trend towards electronic entertainment by creating high-tech video games and toys for which the young consumer is developing a demand. Technology is constantly developing and the trend towards electronic entertainment will continue to grow. Mattel should start competing in this growing market by investing in what consumers want. The high-tech toy supply chain will need to be implemented by outsourcing microchips to the most efficient American or Japanese manufacturing plants in terms of quality and production. Video games and electronic entertainment may soon be available online, so Mattel will have to create a channel structure through online Xbox 360, Playstation 3, directly, or simply through online distributors of electronic content..