Toys are serious business

Experts tell us that play is a child’s work. It is through this that he is encouraged to exercise creativity, hone problem-solving skills and learn important lessons in the exercise of perseverance, resourcefulness and fair play. They say that the games one plays as a child can, to a certain extent, influence his mindset as an adult. And thus, it is not surprising that parents put a lot of thought into what kind of toys they buy for their children. For the child as well as his parents, toys are important commodities.

Toys should be an important matter for businessmen as well. After all, the global financial crisis may have affected other sectors of trade, but has shown limited impact on the toy industry. In 2010, for example, the three major European markets showed sales growths from the previous year. A report from the Spielwarenmesse International Toy Fair in Nurnberg, Germany, reflected a nine percent increase in England, six percent sales growth in Germany and four percent increase in France. In addition, the figures indicate a two percent growth over 2009 in the USA, while the toy market in Australia increased by eight percent. With an estimated US$400 billion market for toys, local toy makers would do well to explore possibilities to be able to get a share of the revenue pie.

In the Philippines, a company that is able to take advantage of the worldwide demand for toys is Hansa Toy International, Inc. In 1994, the company that manufactures plush toys opened its facility in the Clark Freeport Zone in Pampanga. Since then, it has become recognized by the toy industry as the number-one plush toy manufacturer in the world.

“Plush toys are an ‘emotional product’ and consistently account for 16 to 18 percent of the industry,” explains Hans J. Axthelm, founder of Hansa Toy International. He reveals that in 2010, company sales were up 37 percent (with sales of approximately P126 million) from the previous year. He agrees that the financial crisis may have dampened other markets, but the demand for toys remains consistently high. “Consumers may delay their purchases, but the December Christmas sales are as strong as ever.”

What would enable companies to break into, and derive maximum benefit from the toy market? Axthelm identifies research and development as a key factor to consider. “We have to define who the decision makers are and recognize that parents want hands-on involvement with toys,” he says. “Young parents, particularly, are more concerned about educational benefits. Toys that teach have been the goal of Hansa from the start.”

Most recently, the company launched the Hansa endangered collection with the aim of “teaching the young generation the value of caring for wildlife.” Animal conservation groups have endorsed the series. When buyers opt for the gold series, the plush animal is packaged together with its natural habitat.

Recognizing that international toy fairs are a major platform for sales, Hansa actively exhibits in toy fairs. The most important of these is the Spielwarenmesse International Toy Fair, which will be held from Feb. 1-6, 2012 in Nurnberg, Germany. With 60,000 square meters of display area, 2687 exhibitors from 63 countries and more than a million products on display, this is the world’s leading fair for toys, hobbies and leisure.  Eighty percent of visitors at the exhibit have a license to order.

Life-sized toys: “Plush toys are an “emotional product” and consistently account for 16 to 18 percent of the industry.

As a venue for discussion of new trends and safety standards, this is an event that serious toy makers should not miss. Apart from Hansa Toy International, the Philippine exhibitors who have signified their participation in 2012 include CB Creativity (manufacturer of soft educational toys since 1990), C-RREM Arts & Crafts (high-quality educational soft toys), JS Philippines Global Corporation (which has established connections with The Walt Disney Company to develop and distribute Disney merchandise) and Tatiri by Fashion Conspiracy, Inc. (toys, alphabet blocks, stationery sets and watches in one- of-a-kind designs).

While he is convinced of the opportunities presented by joining the Nurnberg toy fair, Axthelm says that a major drawback for the participation by more Filipino toy makers in the exhibit is cost. “We need organization and assistance from the government,” he says. “Growth of the toy industry will result in more employment for locals. We should be able to attract people to invest in the industry. The reason why Hansa came here is because of the Filipinos’ innate artistry.”

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Management Center Asia is the representative of Spitlwarenmesse eG for the Philippines. To find out how you can join the Nurnberg Toy Fair and other international exhibitions, log on to info@mca.com.ph or call them at 491 7334.