Toy manufacturing is a key local industry and we export products to different parts of the world.
For example, Gundam models, a middle-class favorite, is made by Hong Kong's Fuman Group in partnership with the Japanese intellectual property owner Bandai. The two parties have been working hand in hand for decades and weathered changes in the market.
Group executive director Lawrence Lam Chi-bun said that in recent years Fuman's model robots, such as those in the Mobile Suit Gundam and Super Dimension Fortress Macross lines, have become more sophisticated.
Comprising more than 1,000 pieces each, models that are more than 25 centimeters tall and weigh one or two kilograms are priced at around HK$10,000 apiece, he said.
Some limited-edition products have adopted the hunger marketing strategy. Despite considerable development costs, only about 10,000 are made, making them hard to get.
This strategy is made necessary by changes that have crept into the toy market in recent years, with target customers restricted to toddlers aged two or three on one end and adults on the other.
The market is polarized like this because children and youngsters these days are playing video games most of the time, with the only exception being a small group who are still interested in combat-type toys like Beyblade Burst.
This also explains why, despite the new Gundam television series being produced every year, model robots still adhere to designs of old characters featured in TV productions of those bygone years.
As market conditions change, so has the production mode. The models' molds require single-layer circuit boards but finding suppliers has become difficult as mainland factories have switched to making multilayer ones. As such, Fuman has to consider whether to make these relatively low-tech parts on its own.
The company's main manufacturing bases are in Shenzhen and Fujian. Lam observes that alternative places like Vietnam are beginning to experience labor shortages and a rapid rise in labor costs, so the time for reaping peak efficiency benefits by moving factories there has passed.
But as more factories are moving out of the mainland, it has become easier to hire workers there. Also, mainland-made production line mechanical arms are cheap and good, which means lower automation expenses.
After talking to Lam, it looks like traditional industries are still viable as long as they are willing to adapt.
Siu Sai-wo is publisher of Sing Tao Daily
