HK Toy Exhibitors Expect Better Business in 2002, Survey

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Last updated at: (Beijing Time) Friday, January 11, 2002

HK Toy Exhibitors Expect Better Business in 2002, Survey

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Most of the exhibitors and buyers at a toys and games fair in Hong Kong anticipate that business in 2002 will be better than 2001 while expecting the U.S.market to rebound in 2002, according to a recent survey.

About 75 percent of buyers interviewed see the outlook in 2002 to be better, slightly better than, or similar to 2001. Over 60 percent of respondents expect the U.S. market to rebound in 2002 while about 10 percent are not sure.

The Hong Kong Toys & Games Fair, organized by the Hong Kong Trade Development Council (TDC) is being held from January 8 to January 11 and a total of 722 exhibitors and 1,050 buyers attending the fair were interviewed by ACNielsen, an independent survey company commissioned by the TDC.

The survey revealed that more than half of the respondents found 2001 Christmas sales were better or the same as 2000. About 45 percent of the respondents expect Harry Potter products will bethe most popular licensed characters in 2002, while 25 percent of respondents believe Disney characters will be the most popular products.

TDC Toys Advisory Committee chairman Edmund Young said, "The Harry Potter movie was released in November last year and people have a deep impression of this movie. New movies will be coming upthis year and I believe the release of a Star Wars movie this May will help boost the sale of toys this year.

"While most Hong Kong exhibitors interviewed run their production plants in the Chinese mainland, about 21 percent have or plan to develop marketing and sales business there.

Young said Hong Kong manufacturers place great importance in the China market. Many of them are planning to set up more factories or forming joint ventures to increase their sales network. It is certainly a huge market, he said.

However, many Hong Kong manufacturers do not have the rights ofsales in the Chinese mainland yet. But the Chinese mainland will gradually open the market with the WTO.

The survey also showed that 86 percent of Hong Kong exhibitorsinterviewed are compliant with the industry safety standards set by the International Council of Toys Industries (ICTI), with the average compliance rate at 78 percent.

On the depreciation of the Yen, Young said it will bring both advantages and disadvantages to Hong Kong's toy industry.

"With a weaker Yen, Japanese toys become more competitive in terms of pricing. But Japan is mainly focused on electronic toys while Hong Kong mainly produces plastic and traditional toys. Thus,we are not head-on competitors," Young said, adding that Hong Kongwill enjoy a lower production cost with its import of plastic toy parts from Japan.

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