FHKI 60th Anniversary Commemorative Album

When the Mainland opened up in 1979, Hong Kong toy makers started relocating production lines to the neighbouring Guangdong Province, in particular the Pearl River Delta (PRD) region. Taking advantage of the abundant manpower and land resources there, many Hong Kong toy makers set up their production base in the PRD region. Benefiting from by the favourable operation environment they were able to expand enormously and advanced to take a leading position in the world market. In 1982 the Ting family opened their first factory on the Mainland in Shekou. However, after two decades’ rapid economic development, the PRD region became affluent leading to the rise in production costs and very tight labour supply. To overcome these challenges as well as to face keen competition from new industrial economies in Southeast Asia, Hong Kong toy companies have to upgrade and transform their business towards higher value-added activities. In general, they apply technology and innovation (using high precision moulds and computer aided design and manufacturing systems) to enhance productivity and marketability. Some Hong Kong toy companies create their own brands or acquire famous overseas brands, and explore the potential of Mainland’s domestic market. In the past, moulds were made overseas. When defects were found, they had to be shipped overseas for repair. That was a very time-consuming and expensive process that might take a whole year even by air. Customers and even a whole market could be lost. “To solve the problem, my father decided to develop moulds by ourselves, so as to provide a good foundation for the manufacturing of toys. Our training workshop literally became the breeding ground of Hong Kong’s mould and die industry. Many fully trained apprentices later started their factories and were very successful in business,” said Mr Ting. The toy industry is not only a labour-intensive industry, but also requires workers to be skilled, diligent, with a good attitude and quick response. Workers have to learn new techniques to keep pace with rapid changing designs and technology applied to toy products which have relatively short shelf-life (average one year). During the 1960s-1970s, Hong Kong toy factories were mostly engaged in OEM (Original Equipment Manufacturing) production mainly for the Europe and US markets. There was a very small local market. Product specifications and designs usually were provided by buyers. When overseas demand continued to increase in the 1970s and 1980s, Hong Kong’s toy industry began to prosper and very soon captured the world market, selling a wide range of toys from dolls, cars, cartoon characters, action figures, trains to board games. Federation of Hong Kong Industries 60 th Anniversary Commemorative Album 25