Hong Kong toy exporters eye emerging markets

Parents want the best for their children, including buying the best gadgets for their kids to play with. But the lucrative toy business has not much to laugh about these days and is hit by the global economic downturn.

Hong Kong's toy exporters may be an exception to the game however and soon see a revival. During Asia's largest toy fair taking place this week, some players are hopeful their orders from emerging markets will increase.

From dolls to model cars, plastic toys and smartphone-controlled tanks. A dream world for the youngest generation.

Kids have many options to choose from at this year's toy fair in Hong Kong, the biggest in Asia and also the 39th edition.

But many families are tightening their belts when it comes to spending on their children's entertainment due to the global downturn.

According to figures from the Hong Kong Trade Development Council, toys exported from Hong Kong dropped almost seven percent from January to November 2012, while toys exported to European markets fell sharply by 29 percent compared to the same period in 2011.

But one local economist sees the light at the end of the tunnel.

Daniel Poon, principal economist of HK Trade department Council, said, "In the year 2013, I think it would be a better year for our toys exports. Right now, we are seeing some signs of bottoming out of the Chinese economy. The US economy is also doing better because of the improving housing market and the employment. And then, the European debt crisis also stabilised a bit. So, this year will be a better year for our toy exports."

One buyer from Brazil says toy makers should consider the Brazilian market.

Lillian Fung, toy buyer from Brazil, said, "I think, the purchasing power in Brazil is quite good, it is better than that of other countries. I know it as I live there. Brazilians will not have to apply for a visa to go shopping in the United States any time soon because of their purchasing power."

Industry insiders say that toy makers should continue to boost innovation in the sector and explore new opportunities in emerging markets such as Brazil, Russia, India and China.