11 Jan 2007
Happy Days Ahead for the Toy Industry
Big Numbers Buoy the Hong Kong Toys and Games Fair
January 11, 2007 - The global toy industry is expected to shine this year, according to an industry survey released by the Hong Kong Trade Development Council today.
The overall toy market will grow by 10 per cent, with retail markets in the Chinese mainland and Eastern Europe climbing 18 per cent, survey respondents said.
There's good reason for the optimism. Over the past year, toy buyers have been busy, with orders soaring 18 per cent, the quantity jumping 15 per cent and unit price up 14 per cent.
More than 400 exhibitors and 700 buyers attending this week's 33rd Hong Kong Toys and Games Fair were interviewed for the survey, which was based on face-to-face interviews conducted by Oracle Added Value, January 7-9.
Survey respondents predict that this year's fastest-growing sector will be children six to 10 years of age. Educational toys and games, computer toys and games and battery operated and electronic toys and games top the list of product trends. Respondents believe that price, educational value, brand and safety will be the major selection criteria.
Educational toy sales are expected to increase by 12 per cent this year. Toys responding to creativity, logic, IQ and language, and ranging in retail price from about US$11 to $20, are expected to be among the most popular in the educational sector.
It should be a good year for adult toys as well. Those interviewed were particularly high on portable video games (play station portables and Nintendo's Double Screen), TV/ computer/ Internet games, remote control helicopters and other electronic toys and artificial intelligence/ robotic pets.
The Cost of Going Green
Raw material costs are high on the list of industry concerns. So, too is the introduction of green regulations and practices and its effect on production costs.
Most of the manufacturers interviewed believe that complying with the environmental measures will enhance their competitiveness, despite production cost increases of about 14 per cent. By modifying product design and sharing the costs with buyers, they hope to offset the increased production expenses. About 90 per cent of the buyers say they are willing to pay an average premium of 8.7 per cent for products that meet the new regulations and practices.
Nearly 80 per cent of the exhibitors interviewed have taken such measures as introducing environmental friendly packaging and adopting green product design to comply with global environmental initiatives. These include Waste Electrical and Electronic Equipment (WEEE) regulations, Restriction of Hazardous Substances (RoHS), EN71-Part 9, a European toy safety standard that addresses the hazards of certain organic chemical compounds found in toys, and the ICTI Care Process. The latter, established by the International Council of Toy Industries (ICTI), is a manufacturing programme aimed at ensuring fair labour treatment and safe working conditions in the toy industry.
Big Numbers for Toy Fair
The biggest of its kind in Asia and the second largest in the world, the Hong Kong Toys and Games Fair concluded today at the Hong Kong Convention & Exhibition Centre.
The four-day fair, organised by the Hong Kong Trade Development Council, attracted 1,970 exhibitors from 37 countries and regions.
About 30,000 traders from 115 countries and regions visited the fair, with major buying groups from the Chinese mainland, the United States, Japan, Taiwan, Korea, Australia, the United Kingdom, Thailand, Germany and the Philippines.
The next Hong Kong Toys and Games Fair is scheduled for January 7-10, 2008.
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Established in 1966, the Hong Kong Trade Development Council (TDC) creates opportunity for Hong Kong companies, promoting trade in goods and services and connecting China and the world through Hong Kong's business platform. The TDC has more than 40 offices worldwide, including 11 in the Chinese mainland. Trade publications and sector-specific research reports are available online or at the TDC Business InfoCentre. For more information, visit http://www.tdctrade.com
For more information
Please contact the TDC's Corporate Communication Department:
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Tel: 2584 4049
The full report is available from this link: