Hong Kong toy makers should develop into original design manufacturers or original brand manufacturers in order to survive the tough market conditions, the Hong Kong Economic Journal reported Tuesday, citing an industry report.
Amid the slow growth in the US and European markets, local toy makers should tap into the mainland market instead, according to a joint study by the Federation of Hong Kong Industries, Hong Kong Toys Council and Toys Manufacturers Association of Hong Kong.
Currently, 60 percent of local toy makers are original equipment manufacturers, earning a thin margin of less than 5 percent.
The study also found that only 51 percent of the toy makers surveyed have businesses in mainland China, where demand is strong amid rising income levels.
The country’s move to ease its one-child policy could also give a big push to the market.
The Hong Kong Toys Council expects further growth in products for babies, citing an official estimate that two million infants are born in China every year.
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