Manufacturers pin hopes on emerging economies
Local toy manufacturers and exporters worried about the global economic downturn hope to turn to emerging markets such as Russia and Vietnam to help make up for fewer orders from the United States and Europe.
Many of the more than 2,000 exhibitors at the four-day Hong Kong Toys & Games Fair, the world's second-largest trade show of its kind, are projecting business from the two major markets to shrink between 10 and 20 per cent this year.
The US is Hong Kong's biggest market for toy exports, accounting for 27 per cent of the US$12.61 billion of exports of toys, dolls and games recorded in the first 11 months of last year.
'There is definitely concern about the impact of the economic downturn on toy orders,' said Jeffrey Lam Kin-fung, the managing director of toy manufacturer Forward Winsome Industries. 'Christmas sales in the US and EU managed to hold relatively steady although prices dropped.'
The uncertain outlook comes as more than half of the mainland's toy exporters shut down last year, according to the General Administration of Customs. Hong Kong toy manufacturers have most of their factories on the mainland.
'Christmas is over and I think we have already experienced the worst,' said Wong Tit-shing, the chairman of the Trade Development Council's toys advisory committee. 'The situation should stabilise now and not deteriorate further.'
Hong Kong's toy exports rose 11 per cent year on year in the first 11 months of last year. Exports to the mainland grew 8 per cent during the period, while the EU recorded a 50 per cent growth. Relatively new markets such as Russia imported 27 per cent more toys from Hong Kong, according to the council.
The 35-year-old fair features a new World of Toys Pavilion this year in collaboration with German organiser Spielwarenmesse. The new pavilion was included in other leading toy fairs in Dubai and Moscow.
