The gift industry is worth more than US$150 billion to the Hong Kong economy every year.
The two main challenges facing Hong Kong's gift manufacturers are increased competition and consumer demand for more environmental awareness in the form of non-polluting materials.
Novelty gift specialist HPI Hong Kong deals with competition by concentrating on a niche market with few other players.
The company is launching about 45 new products at the Summer Sourcing Show. Among them are animated, sound-responsive Christmas ornaments and clocks without numbers.
'We are one of the few companies that creates speciality gifts. We create these items for the kid in everybody,' managing director Harald Uretsky said.
Many of the ideas come from inventors who go to HPI with their patented ideas.
'Our latest products include clocks that have no numbers - you tell the time by counting dots. The Executoys range of desktop items is a collection of basic toys that are given an executive look with colours and adult packaging. [And there are] desktop hockey and soccer games.'