Toymakers say economic woes have hit global sales
Despite retailers rolling out promotions and discounts to ramp up sales, 2023 has not been a "great year" for the global toy industry.   That's according to the chairman of the Hong Kong Toy Council, Bryant Chan. Chan told RTHK that the sector has been reporting a slump in sales in the first few months of 2023, and is anticipating a contraction for the full year.  "Over the past few years, the toy market has been growing even during the pandemic. On average, since 2017 up until 2022, the global toy market has grown by about 3.5 percent. But in the first four months of this year, the global toy market has actually shrunk by about 6 percent," he said. "Right now we don't have the latest numbers in from Thanksgiving and from Christmas yet, but based on what we've been hearing from our orders and everything, we anticipate that there may actually be a drop in the overall toy market this year."  Chan said the sluggish global economic recovery is to blame for the industry's slump.  "Starting from the second half of 2022, there's been a slowdown. That's to do with the macro environment – high interest rates which means that people have been spending less. And also, a lot of retailers have been hit by a high inventory situation," he said.  However, the toy council chief noted that there are still some areas of growth, with demand remaining high for certain types of toys. "I think over the last few years, the outdoor category is one of the largest in the toy market...  that, along with games and puzzles ... are some of the larger categories," he said.    "What we've seen since the pandemic is that a lot more families, friends and children get together to play games.  We've seen this trend continue even post-pandemic." Chan said toddler toys, as well as STEM (Science, Technology, Engineering, and Mathematics)-related products will continue to be a hit as parents opt for items that have higher educational value.