Hong Kong Homecoming: The HKTDC Toys & Games Fair is Back in Action

by CHRIS BYRNE, The Toy Guy, President, Byrne Communications

Some things about the Hong Kong Toys & Games Fair remain unchanged after a two-year hiatus.

For one, if you track steps, your counter is likely to go off the charts because there’s so much to cover and so much to see. It was great to be back and experience “trade show tired” again.

All kidding aside, the 49th edition of the show was considered a success in what organizers deemed “a transitional year” as the show was relaunched following the COVID-19 pandemic. It was a bit of a nail-biting time leading up to the opening of the show on Jan. 9. COVID mitigation restrictions and Hong Kong entry requirements were being continually revised, and the borders between Mainland China and Hong Kong opened just the day before, prompting a last-minute surge in attendance. Masking and daily rapid testing were this year’s norms, but even with all the concerns, the excitement in the halls was evident everywhere.

Combined, three concurrent shows — Hong Kong Toys & Games Fair, Hong Kong International Stationery & School Supplies Fair, and Hong Kong Baby Products Fair — drew more than 21,000 buyers from more than 100 countries and regions. Exhibitors were pleased — and perhaps a bit relieved — to see the number of buyers who traveled from around the world to see the latest products.

If the overall size of the fair seemed smaller, Sophia Chong, Deputy Director of the Hong Kong Trade Development Council (HKTDC), organizer of the shows, notes that the ratio of buyers to exhibitors in attendance was similar to peak years. Additionally, she says that as business travel stabilizes, organizers are optimistic about the future. Indeed, the Hong Kong government has introduced several subsidy programs to support exhibitors and buyers while encouraging participation in the event. Both short- and long-term programs underscore Hong Kong’s commitment to trade shows across all industries and are available to all exhibitors, with some limitations.

The physical fair was only part of the story, however, as HKTDC unveiled its Exhibition+ hybrid model, which buyers worldwide can use to participate in the Toys & Games Fair virtually. The platform is sophisticated, yet easy to use, and in our test runs, worked effectively to help find products and vendors. Several exhibitors mentioned that using the platform was effective in securing virtual and in-person meetings with buyers they might not have been able to reach as efficiently on their own. Exhibition+ also provides access to the exceptional seminars and presentations presented under the Toys & Games Fair’s education program.

The show floor in Hong Kong has long been an excellent representation of the toy industry — both where it is and where it’s going. Walking the halls this year and talking to exhibitors, it’s clear that the industry continues to respond and react to changing consumer preferences in an effort to stay ahead of the market.

This year’s theme, “Play to Bond: Family and Beyond,” was well-chosen to highlight changes in play that grew out of the pandemic as well as the enduring power of play in families worldwide. In practical terms, this means expanded offerings in educational STEM toys, arts and crafts, games, and activities.

One of the most noticeable differences this year was how few drones and electronic products were on display compared to 2020. Back then, you couldn’t walk down an aisle without seeing drones flying and R/C vehicles zipping about. We asked some of the companies still showing those products what happened, and for the most part, they said that the market for these toys has contracted due to slowing consumer demand and a switch to OEM (original equipment manufacturing) programs for retailers worldwide. OEM impacted more than electronics, however, as exhibitors said that for the U.S. and European markets they were increasingly being asked whether they would produce OEM goods in many categories, especially preschool, activity, and plush.

This year, in response to requests from attendees, the HKTDC implemented a “green toys” program, helping manufacturers promote their sustainability efforts through a leaf-shaped sign calling out eco-friendly products at each booth.

Peter Handstein, Founder and CEO of Hape Holding AG, says that he’s excited to see this trend going mainstream, adding that his company has been working with sustainable materials for 37 years and has been making products using bamboo for the past two decades. Hape has also introduced Korko building blocks, a line produced using cork. He notes that strong consumer awareness for sustainable goods helped drive a 20-30% increase in toy sales during the pandemic.

The “kidult” trend may be one of the hot, current news stories in the U.S., but it’s nothing new at the Toys & Games Fair. The show first identified these consumers and dedicated a special area of the show floor to kidult products a decade ago. Beautifully detailed collectibles targeting many different audiences were on display in Hong Kong, including numerous products featuring Sanrio characters and Ultraman, which remain hugely popular throughout Asia, according to representatives from Keepley. At the Enesco Asia stand, buyers could explore high-end Disney ceramics, including Mickey and Minnie Mouse adorned with gold accents and rhinestone decorations.

In the construction category, Royal Toys showed an entire line of sets inspired by Hong Kong, including the iconic trams and Star Ferry, buildings, and parks, all in miniature versions geared toward adult builders. Sluban, another block-based company, showed its line of mini figures alongside floral sets and historic offerings like the Titanic.

The enforcement of intellectual property (IP) laws and increased education of the trade by the Hong Kong and Chinese governments paired with consumer demand for licensed goods fueled a boom at this year’s Toys & Games Fair.

While potentially infringing products can still be found throughout the street markets of Hong Kong, their numbers have diminished and there was no evidence of their presence on the show floor. Top entertainment properties, including Mattel’s Barbie and MGA Entertainment’s L.O.L. Surprise!, were on display and boldly advertised as “officially licensed.”

One of the most obvious developments even to a casual observer this year is the increased sophistication of design coming out of companies in Mainland China. It’s a huge change from even a few years ago, as new lines display original, contemporary looks that make them well-positioned for global markets — including high-end specialty stores. In the ride-on, baby, and preschool categories, there is an elegance and style that’s consistently impressive.

The passion for greatness in design is not limited to Chinese companies, either. Houston-based Mushie, an established designer baby products company, is expanding into toys this year, according to owner and CEO Henrik TØth Jensen.

Educational programming has consistently been one of the key features of the Toys & Games Fair. This year’s lineup covered developments across retailing, operations, and overall industry trends.

Arnoldo Concepcion, Co-Chief Operating Officer of Animoca Brands, discussed how Web3 technologies, including NFTs, and blockchain, may influence play, engagement with properties, and interaction among kids. While he pointed out that these technologies are still in the early stages for toy applications, they are likely to have a major impact in the coming years.

Having made it through its trade show relaunch this year, the HKTDC says that planning is underway for its 50th anniversary Toys & Games Fair in 2024. Details are still under wraps, but the organizers promise expanded educational and networking opportunities in addition to greater entertainment options.

It’s not too early to start planning for next January’s trip to Hong Kong! Visit hktdc.com to explore a wealth of resources and updates regarding plans for the 2024 event.

A version of this article was originally published in the 2023 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!