Tech-heavy toys press the right buttons this Christmas
Electronics have stolen the limelight this Christmas, with hot toys coming with smartphone and tablet features, according to the city's biggest toy retailer.
Electronics have stolen the limelight this Christmas, with hot toys coming with smartphone and tablet features, according to the city's biggest toy retailer.
For example, a Samsung Galaxy Tab 3 for children combines education and entertainment, while a robotic hamster or owl-like Furby can be fed via a smartphone application, and remote-controlled helicopters or cars come with lighter batteries and more intelligent printed circuited boards.
"I don't think toy retailers are scared of technology, but are embracing it," Schats said. "It's better to give tablets specifically designed for kids for learning, playing games and interacting with parents and peers while parents can set a timer to avoid over use.
"This is better than letting kids play with adults' smartphones or tablets, which they may use to browse some internet content they are not supposed to."
Toys 'R' Us in the region is a joint venture owned 30 per cent by Fung Retailing and 70 per cent by Toys 'R' Us of the United States. Fung Retailing, a private company of the families of Victor Fung Kwok-king and brother William Fung Kwok-lun, has been rumoured to be seeking a listing since last year.
A traditional peak season for toy retailers, Christmas sales growth at the 15 Toys 'R' Us outlets in Hong Kong could be in the "mid-single-digits" this year, Schats said, after "low double-digit" growth last year.
"We're reasonably optimistic about Christmas sales, but people tend to shop later and a big rush is likely to come in the last minute," he said. "I haven't done my Christmas shopping yet."
To boost revenue, Toys 'R' Us plans to expand the presence of Babies "R" Us, which offers products from ranging from baby formula, strollers and bedding to furniture in Hong Kong, after opening two stores this year, he said.
Schats said the new business model was aimed at complementing the existing 13 Toys 'R' Us stores, which primarily sells toys.
He added that the company planned to add about 20 stores across the mainland in the next few years.
The retailer currently has 50 wholly owned outlets on the mainland, mainly in top-tier cities such as Beijing, Shanghai, Guangzhou and Chengdu.
Toy collector Joel Chung Yin-chai said the growing popularity of electronics and games should alarm the toy industry.
"If they play many electronic games, children will become more passive and lose interest in conventional toys," he said, adding that he had seen a three-year-old download games on an iPhone.
"Parents, designers, manufacturers and retailers have responsibilities in determining the use of these gadgets."
