Hong Kong's toys manufacturers intend to raise the proportion of their products sold on the mainland amid a rapidly expanding toys market.

According to the National Bureau of Statistics, the production of baby products on the mainland from 2011 to 2015 has been increasing at an average of 15 percent annually. JP Morgan predicted that, with the easing of the country's one-child policy, the number of babies born each year on the mainland will gradually increase by 1.8 million and the demand for baby products will go up by four percent.

"Statistics show that the mainland has a huge toys market with rising family income and living standards," said John Tong, chairman of the Hong Kong Toys Council. While the SAR, as the world's second-largest toys exporter, saw its total toys exports dropping by 15 percent in the first eight months of this year from HK$31.4 billion ($4 billion) in the same period last year, growth has been slow in exports to the city's major toys markets - Europe and the US.

"Hong Kong's total toys exports were valued at HK$63.9 billion in 2013, with the mainland market absorbing less than 10 percent," Tong said. "While toys exports to the mainland have remained at double-digital growth, parents on the mainland now prefer to buy safe and innovatively designed toys for their children."

Hong Kong manufacturers have been urged to upgrade themselves, offering "Made in Hong Kong" toys to the mainland through various distribution channels. "Thriving online shopping will do great help. We wish to cooperate not only with major mainland online shopping platforms, but also with retailers and distributors," said Cheung Kwong-ming, president of the Toys Manufacturers' Association of Hong Kong Ltd.

Representatives of Hong Kong toys manufacturers said they are very eager to explore and tap the mainland market.

"Our manufacturers should make use of their competitive edge and strengthen awareness of the 'Made in Hong Kong' brand among mainland consumers," said Emily Cheung, director of Good Link International Trading Ltd.

Kit Cheung, senior product designer at Blue Boxing Holding Ltd, said it's important to strengthen branding as far as the industry is concerned. "As mainland consumers are increasingly demanding higher quality toys, coupled with the fact that toys manufacturers on the mainland and overseas are keen to stand out amid intense competition, market positioning and branding of toys manufacturers has become very important," Cheung said.

With the aim of helping local toys producers to develop their own brands and explore the local toys market, a 20-month project named "Exploring the Mainland Toys Market for Hong Kong's Toys Industry through Design, Upgrade and Branding" offers a series of free training programs and workshops that will give an insight into the mainland's current toys market trend. The project is jointly organized by the Federation of Hong Kong Industries, the Toys Manufacturers Association of Hong Kong and the Hong Kong Trade Development Council.

"Through this program, we get to understand not only the requirements of mainland consumers, but also information related to the mainland's safety regulations on toys and the application of products patent. In addition, we can let more mainland buyers know our products," said Vaneffa Ho, general manager of Scientific PU Foam Co Ltd.

celia@chinadailyhk.com

Hong Kong's toys business expects to cash in on developing more products for children on the mainland with rising family income and living standards across the border.  AFP

(HK Edition 10/29/2014 page8)