Hong Kong toy companies eye opportunities in Chinese market as Beijing’s trade war with US intensifies
The Chinese domestic market has become more important in recent years, even before potential US tariffs became a concern for Hong Kong toymakers
Emily Cheung’s family has been designing and making toy cars, dinosaurs and other children’s products in Hong Kong for 36 years – toys that are on many occasions destined for the United States.
The US remains an important market for the family business, Tsuen Lee Group (Holdings). But like many Hong Kong toymakers, Cheung has been exploring opportunities to lessen the company’s reliance on America and other western markets.
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One solution is turning to the domestic market in China, where rising incomes have made it more attractive for toymakers.
Tsuen Lee, which has manufactured products based on Marvel and DC Comics superheroes and Peppa Pig, has built a successful line of toys in China based upon characters from Ming the Minibus, a series of books and educational television shows about a Hong Kong minibus that travels the world, said Cheung, who is the second generation to run the business.
The US accounts for about half of Tsuen Lee’s business, which employs 12,000 people in Hong Kong and on the mainland.
“The Hong Kong toy industry is [looking for] different ways to try and minimise the impact of the worldwide economy,” said Cheung, who is also the chairwoman of the Hong Kong Toy Council. “Because of the growth of the Chinese economy, parents in China are looking for some good quality products, premium products. That’s why there’s room for Hong Kong toymakers.”
