The Hong Kong Toys & Games Fair, Asia's largest toy show, opened on January 7th with more than 2,000 exhibitors featuring a wide variety of quality, innovative products from around the world. Organised by the Hong Kong Trade Development Council (TDC), the fair continued through January 10 at the Hong Kong Convention and Exhibition Centre.

Fair briefing

-Little change on visitor attendance

The 34th Hong Kong Toys & Games Fair features exhibitors from 36 countries and regions, including group pavilions from the Chinese mainland, Germany, Italy, Korea, Pakistan, Spain, Taiwan and Thailand.

A broad array of exhibits, ranging from ball games, bicycles, water sports and gymnasium equipment, to action figures, puzzles, miniatures and collectibles, electronic and battery-operated toys, are highlighted in seven special zones: Hobby Goods; Baby Toys and Products; Magic; Outdoor and Sporting Items; Candy Toys; Paper Toys; and Story Books.

Close to 30,000 buyers visited the fair last year. This year, the TDC has organised 86 buying missions, with more than 4,800 major buyers from around the world taking part in the fair. These include key buying representatives from well-known toy brands and leading chain stores such as Toys R Us, Walt Disney, Mattel, Hasbro and Bandai; Australia's Toy World; Germany's VEDES; India's Pantaloon; Japan's Don Quijote and Kawada; New Zealand's Baby Factory; and the UK's Hamleys.

A series of varied events add fun to the fair. Models and cheering squad are invited to give performance. Furthermore, symposia are held to cover topics like product safety, Asia toy trend, licensing, risk management as well as brand development.

Statistics from TDC shows that, totally 2002 companies exhibit in this session, 1 percent more than that of last year. Among them are 1000 companies from Hong Kong and 552 from Chinese mainland.

Buyers to the fair amount to 29773, coming with a 1.53-percent rise via the 29324 last year. The fair has attracted 15094 overseas buyers from 130 countries and regions, with little changes compared with last year---only 0.15-percent growth.

Among the figures, it can be found that, among the top 10 countries and regions, buyers from United States, Japan, Korea and UK see a slight decline against last year, and Germany even been pushed out of the list. In contrast, this year receives more visitors from Chinese mainland, Taiwan, Thailand, Philippines and Singapore.

-Three traditional categories stand out

Affected by earlier recalls, buyers from European and US seem less than previous years. Electrical and plastic toys are in moderate display. In contrast, it can be found that, wooden toys, plush toys and children’s vehicles receive a good number of buyers. Exhibitors in these traditional categories are satisfied with the achievement in this session and expect to gain more booths next year. Mu Jun, owner of Taizhou Haotian Arts and Crafts tell TOY INDUSTRY that, though recalls have impact on the industry, their business has not been affected seriously. Instead, he has good recognition on this fair.

Jin Jinmian, another owner of wooden toy company, Aoguang , on the contrary, felt great impact on business. “Some European buyers require us to meet US standard on lead. At the same time, Europe has stricter requirement itself, ” Jin says. He believes that, in creased testing cost and commodities inspection and longer delivery period due to more testing procedure would be serious problems that wooden toy maker encounter with. Meanwhile, he holds that, rising price of raw materials and RMB upvaluation would be harassment on toy export.

Besides, wooden toys, children’s vehicles, including battery-operated cars and baby strollers, in-car safety seats for kids as well as cloth and plush toys are said to warmly received in this fair.

Focus

-Quality and safety

As all know, high-profile recalls of China’s toys last year have aroused great attention of all circles. Therefore, compared with previous years, quality and safety problem are in forefront in Hong Kong Toy Fair. Crowd of media reporters, audience of symposium and authorities guests’ speech can be interpreted into people’s focus.

Seminar on “Latest Product Safety Directives of Toys Industry & Good Practice in Achieving Safety Standard” has invited official and industrial experts to deliver significant speech so as to aid toy business to advance its quality, which has attracted near 700 participators.

Speakers include Jeffery Lam, chairman of TDC Toys Advisory Committee, Lawrence Chan, Chairman of Hong Kong Toys Council and Executive Vice President of The Toys Manufacturers’ Association of Hong Kong Li Qingxiang, vice director of Guangdong Entry-Exit Inspection and Quarantine Bureau, Richard O’ Brien, Director of International Programs and Intergovernmental Affairs, US Consumer Product Safety Commission, Carter Keithley, President of Toy Industry Association, USA, Christian Ewert, CEO & President of ICTI CARE Foundation and  Harriet Mouchly-Weiss, Managing Partner of Strategy XXI Group Ltd, New York.

When delivering his welcoming speech, Lam notes that, quality guarantee are not the responsibility for makers only. Instead, he appeals that, all members on the production chain, including designers, buyers and purchasers should bear the responsibility.

Although affected by recalls to some extent, China’s export in the first 10 months of 2007 amounted to 7.1 billion USD, rising by 20 percent against the same period of previous year.

-Price and surviving

Changing labor law in mainland China, rising labor cost, surging price of raw materials, upvaluation of RMB and new requirement of testing and inspection combine and result in extreme pressures on toy makers’ production cost. Weak ones with small size might close down and the survivals would have the opportunity to raise the price of toys and improve toy quality.

In this aspect, Lam advances the slogan of “sharing the responsibility”. He believes that, only when retailers and buyers not demand an over-low price, can the whole market develop in a healthy way and can kids gain more safety products.

Samsung Chan, president of Toys Manufacturers' Association of Hong Kong (TMHK) estimates that, in the coming year, there would be a rise about 10% to 30%, depending on detailed category of toys.

-Active publicity and promotion

Some interesting things can be seen in Hong Kong Toy Fair. Exhibitors, including China and overseas, are eager to promote and demonstrate their products on the aspect of quality. Some would emphasize the origin, and some turn to various certificates of testing.

In fact, in the seminar on “Latest Product Safety Directives of Toys Industry & Good Practice in Achieving Safety Standard”, Harriet Mouchly-Weiss, Managing Partner of Strategy XXI Group Ltd, offers her useful suggestion on how to cement the promotion on toys’ positive function and put right negative notion of current global media.

Market trend

-Prudential and optimistic with export

US‘s economy growth is slowing down and realizing soft landing, Jeffery Lam says, results in stable export, which would not see great slide. He expects toy industry to maintain prudential and optimistic attitude. Export of emerging market would be increased, Lam says.

-Creative idea in demand

Changing toy market brings in variable. Toys coming with shorten life, those rely on single function can no longer adapt to new challenge. In addition, meager profit from OEM business forces the whole industry to adopt brand strategy, pursuing creative design to add more value to products.

We can find that, even prevailing traditional toys, such as LEGO’s construction kits and Barbie dolls would see new function to attract sales.

Combination of toys and electronic technology would make our games more exciting. Nintendo’s Wii and Brio are both good examples. █