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APR, 2011                          COMMENT
No. 85                             Earthquake Resistant Industry   P3
Li Zhuoming
                                   R/C Helicopter: Takeoff, Contact, Crossfire and Rendezvous   P4
Sharon Wen                         New Recruits to Air Force
                                   Overseas Flying Playthings P8
Lin Feng

                                   HOT TOPIC
Li Shi                             Dejected Barbie’s Retreat   P11
Zhang Jiaxiong

Ellie Man                          WHOLESALES ROUNDUP
                                   Jiangsu: Calm Market Expecting the Coming Toy Show in Guangzhou
Haky Wu                            P13
                                   Hebei: Sales for Outdoor Sport Items Gearing Up   P13
Li Huiyi                           Guangdong: Eco-Friendly Toys to Rise as Mainstream in Dongguan        P13

                                   FAIR INSIGHT
Wendy Chan
Rita Fong

Guangdong Toy Association
                                   Product Sneak Peek of Guangzhou Toy and Baby Product Fair         P14
Guangdong Research Council
of Toy Cultural Economic
                                   TOTY Awards Announced       P17

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2/F, 1# Zhengping St. S., Taojin   Toys Recall Report of US CPSC   P20
Road N., Guangzhou, China

WWW.CHINATOYTRADE.COM              Taiwan Merchants Suspend Buying Toys from Japan       P21
                                   Shanghai White-Collared Love of Toys    P21
S u b s c r i b e                  Seniors Get Active with Video Games     P22
E-Monthly Now !                    Panasonic Decides Not to Enter Game Console Business         P22
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  2                                                                                  TOY INDUSTRY APR, 2011
       C   omment


                 arch 11th, a catastrophic magnitude 9          typhoon, Japan companies keep their business run in
                 earthquake and tsunami nearly engulfed         order basically coming upon no affect. Lin Gang, general
                 in a blink coastal areas in northeast Japan.   manager of Toyswonder, a significant business partner
                 It is far more than a hit on Japan, which      of Bandai in China, told TOY INDUSTRY that, after the
shocks the whole world. Japan’s National Police Agency          earthquake, Bandai’s production base in Shizuoka has
announced on March 29th that, as of 9 pm of the same            not ceased running for even one day and now it is in
day, the catastrophe had caused 27,000 people dead or           normal supply. However, after the disaster Japanese Yen
missing, as well as massive destroy to cities and towns.        exchange rate fluctuates a lot, disturbing import from
It is considered a rare disastrous calamity in hundreds         Japan. In the year of 2010, Guangdong totally imported
of years.                                                       15.574 million US dollar of toys from Japan.
   As one of the key to market in the world, Japan is also         Thirdly, Japan, especially Akihabara, Tokyo, is a place
a significant exporter of toy brands. The earthquake            of strategic importance for animation, comics, video
will necessarily affect this year’s toy market in various       games, hobby merchandises and many other subculture
aspects. However, judging current analyses, I believe           key words. Fukushima nuclear hazard just follows.
such influence will be in a limited range. It will not be       Tokyo, 260 km away from Fukushima nuclear power
another “magnitude 9” in toy industry.                          station, lost its bustling scene. Tokyo International
    First of all, we have to acknowledge that the severe        Anime Fair that scheduled in March is cancelled for
earthquake will greatly hit the recovery of Japanese            the circumstance. As the largest animation and comic
economy or even trigger a chain reaction to result              show in the world, TAF is also considered a carnival
in financial turbulence or crisis, dragging the step of         for both business and fans, and big names like Bandai,
world economic resurgence. Highly relying on overseas           Takara Tomy displayed their new products in previous
market, China’s toy industry will be affected in respect        session. The fair attracted over 100,000 attendees.
of export. According to customs’ statistics in 2010,            Therefore, the earthquake might disrupt the step of
Japan ranks as the fourth biggest export partner for            trendy products led by animation titles. Furthermore,
China’s toy business, only next to United States, EU            video games market in Japan that experienced low tide
and ASEAN. As the largest toy province, Guangdong               in recent years would continue its downturn.
exported 452 million US dollar of toys to Japan.                    Keep our eyes peeled upon the impact from Japan
    Secondly, Japan is an important exporter of brand           earthquake and make early plan according to respective
toys. Bandai, Takara Tomy, Epoch, Sega Toys, Tamaiya,           situation. It is the right attitude for China’s toy
Nintendo and more are among the top list. However, as           companies in the way of seeking new opportunity.
production cost rises in local Japan, these great brands
have moved their factories to China and Southeast
countries, leaving only a small part in Japan. It is
known that, a majority of Japan’s toy production is
in the southern area, far away from the regions with
greatest affect from earthquake. Plus, highly familiar
with natural disaster like earthquake, tsunami and

3                                                                                               TOY INDUSTRY APR, 2011
Features: R/C Flying Toys

                               helicopter is a wonder in domestic
                           toy market. Starting from HoneyBee that
                      attracted great audience base since its birth several
                  years ago, we saw an upsurge in R/C helicopter market and
                 a volume of makers emerged. However, uneven quality, lack
              of creative idea and poor after-sale service just followed. In 2010,
              RC/ helicopter lost its edge while domestic sales for the category
                                       trended to decline.
                 In overseas market, R/C flying toys can be considered a kind
                  of ever-green items. So why this emerging hit encountered
                       with bottleneck only after a few years of growth?
                             And how can we retune the business?

                R/C Helicopter:
                      Takeoff, Contact, Crossfire and Rendezvous


         /C helicopter is once classified as hobby                hobby models believed Silverlit explore potential
         models. However, its high price, difficulty in           market and develop a good base of audience.
         control and area requirement hinder it from
         prevailing in large population. Advancing of                  Contact
the concept as “model-turning-toy”, along with new                     New comers in copter market
technical breakthrough boost up the achievement of                   Creativeness and playing value evoked great growth
R/C helicopter in domestic market. It is proved to be a           in domestic sales of toys, attracting a great deal of
feasible way-out.                                                 makers to follow suit.
                                                                       Shen Runnan, general manager of Shantou
     Takeoff                                                      Subotech Toy Co., Ltd, analyses that, economic crisis
     HoneyBee as pioneer                                          in 2008 impels some export-orientated companies
    In the year of 2006, Silverlit’s HoneyBee (also as            to seek out new opportunity and explore domestic
Picooz in market of China) debuted and aroused a                  market. “Sea rinses off sands and only the essence
sensation in domestic toy market for its mini size, light         remains,” Shen says. He adds that those can survive
weight, easy controlling and strong sensibility. With a           after crisis are companies with good strength. When
reasonable price as 298 yuan, it recorded a monthly               finishing primitive accumulation, they are considering
sales of tens of thousands yuan in successive months.             expanding and seeking new investment idea. Blooming
It sets a milestone for the development of “model-                R/C helicopter market undoubtedly is a magnetic to
turning-toy”.                                                     some of these companies and vice versa, it keeps the
    HoneyBee was a revolution epitome and appeared                blooming market in warm.
frequently in toy shows throughout the world. With                    According to incomplete statistics in WWW.
more design like usual toy, not only kids but also adults         MADE-IN-CHINA.COM, there are 454 domestic
were crazy for it. Even specialized manufacturers of              makers for R/C toys, including OEM makers, most

4                                                                                              TOY INDUSTRY APR, 2011
Features: R/C Flying Toys

of which is based in Pearl River Delta and Yangtze       development or unstable quality, some of their
River Delta. Furthermore, over 70 percent of them        products are aggrandized in promotion key words.
are from Guangdong, amounting to 323 companies.          Especially items sold online are not all in good quality.
Additionally, it is estimated that, more than 300            At present, many helicopters on shelves share the
makers deal with business of R/C helicopters are         similar outlook design and have no many creative
based in Chenghai, Shantou and annual production         ideas. Mini size, light weight, built-in gyro, stable flight
value exceeds 1 billion RMB yuan.                        or breaking-resistant materials… are all their ability.
    We can see interesting evidence here. Two years      Only a small number of makers come with strong R&D
ago, many makers started to adopt gyro in their          power and are willing to invest money and manpower
product. However, since the major supplier for gyro,     into development.
Murada in Japan, had not expected such a large               In view of Yang Xvshun, manager of Double Horse
volume so failed to catch up with demand. As a result,   Toys Industry Co., Ltd, many R/C helicopters today
from National Day through the end of the year in         only see new elements added to previous version,
2009, helicopters had been out of stocks in various      instead of improvement on performance.
regions.                                                       Makers that follow suit to make similar products
    Top brand names such as                                          lack in design of novelty. Even Silverlit that
Silverlit, Syma, Double Horse,                                        once launched an astonishing masterpiece
Huanqi, Attop, Meijiaxin and                                                                    displayed low
Qingsong, dominate                                                                              stamina when its
the majority                                                                                    Gyrotor. Though
of domestic                                                                                     it is a kind of
m a r ke t fo r R / C                                                                           subsequent
helicopters.                                                                                  v e r s i o n o f
    Performance and                                                                         H o n e y B e e ,
quality of the toys                                                                         coming with great
are also improved.                                                 improvement             on appearance, power
2-channel, 3-channel,                                    and flying height, there was no any creative idea
3.5-channel and                                          coming by. At the same time, other emerging makers
4-channel offer                                          also seized market shares.
increasingly precious                                         HoneyBee’s tremendous success once aroused
control. Foam, plastic and         metal materials       a strong trend of “imitating”. So as early as 2007,
create highly-detailed design. Moreover, we have         Silverlit began a sniping action against counterfeits,
greater choice in price points, ranging from 100 to      including 4 companies in domestic China, 5 in Hong
1,000 yuan.                                              Kong and 1 in the United States. But it has not stopped
                                                         the practice of counterfeit.
    Crossfire                                               Certainly, some makers also focus on improvement
    A time of fierce battle                              of quality and technique on the development of R/
   When toy makers started the same business in          C helicopters. But the fierce battle field is still set for
swarms, domestic R/C helicopter market welcomes          price. Certain maker tells TOY INDUSTRY that, since
not only rapid growth but also negative problems.        there were only a small amount of makers in earily
   It is found that, new comers to R/C helicopter        years, gross profit could be as high as 50 percent.
business can be divided into two types. One includes     However, when lots of other makers swarmed into the
those OEM makers target with overseas market             market, profit margin has been pressed down to about
previously, which feature good power in R&D and          10 to 15 percent currently.
manufacture. This type of makers retunes towards             Yang Hanchu, general manager of Double Horse,
domestic market due to harsh testing standard and        says it frankly that, labor cost, materials, production
higher cost in European, US and Japan market.            cost and product quality are keeping growing these
   Toy makers considering R/C helicopter as new          year but on the contrary, price point can never rise
category belong to another type. With over-fast          at the same time. Once you require higher price, you
                                                         might lose market shares to your rivals.

5                                                                                        TOY INDUSTRY APR, 2011
Features: R/C Flying Toys

                                                         strong power will finally eliminated by the market and
                                                              As an expert in realm of airplane model, Lin
                                                         Hongwen, GWS Grand Wing Servo-Tech Co., Ltd,
                                                         suggests that, no matter you talk about a trend of
                                                         “model-turning-toy” or “toy-turning-mode”, the
                                                         most important thing to do is effective promotion.
                                                         Connecting with education system is the most usual
                                                         pattern. He expects that government department can
                                           According     open some parks or open area for airplane model fans.
to a                                      statistic      In addition, schools can offer wide land for students to
data of                                  TA O B A O ,    practice their skill in weekends and holiday.
among all                                  shoppers          In the respect of market training, Shantou Attop
that buy                                    R / C        Plastic Toys Co., Ltd has good achievement, which sees
helicopters, 52 percent                  choose          maintenance service, training and flight demonstration
products priced between 55 to 158 yuan. There are        every month. Furthermore, they provide strong
many and manifold brands for this category are sold      support for distributors to establish hobby club
online while the lowest model only cost you 30 yuan.     throughout the country, offering opportunity for
However, you are not guaranteed good quality and         fans to training and tournament. It becomes a good
high playing value.                                      platform for amateur consumers and superfans to
                                                         communicate with each other and carry out funny
   Rendezvous                                            event.
                                                             We believe that, various companies need to join
   Healthy development gestates mutual                   hands so as to develop an evergreen market of R/
benefit                                                  C helicopter. Only with good quality, innovative
   Judging from the TOY IDNUSTRY’s quarterly Retailing   performance, strong after-sales service and powerful
Research, R/C helicopters have dominated toy markets     campaign and event can the whole business go further
years after HoneyBee’s birth. But in 2010, it lost its   in a healthy development road.
edge and sales of the category declined by nearly 30
percent, according to insider’s analyses.
    There might be two major causes here. Similar
product design and hard maintenance, which finally
repel consumers.
    Different with usual toys, R/C helicopters feature
strong technique. Inappropriate control will easily
result in destruction on the toy. For this reason,
quality takes priority.
     TOY INDUSTRY finds that,
most of makers and distributors
of R/C helicopter believe that it
is increasingly hard to do business
now, but still, they are rather
confidence to make progress with brand,
quality and persistence.
    Wang Chunbing, general manager
of Beijing Huanlegou Toys, believes
that, makers should keep developing
new consumer base so as to sustain later
consumption. And when brand makers continue to do
R&D in original products, small-size factories with no

6                                                                                      TOY INDUSTRY APR, 2011
Features: R/C Flying Toys

    New Recruits to Air Force

                                        Double Horse’s new model 3-Channel Single Rotor R/C Helicopter
                                       (9104) with built-in gyro. It takes initials to introduce the concept of
                            “3-channel single rotor”. It can resist outdoor gentle breeze. Though usual 2-rotor
                           helicopter can only fly outdoor when it is really breezeless. Its price is close to
                           that of 3-channel 2-rotor model, coming with higher playing value in comparison
                           with the same price point.

         With exclusive patent technique, Feilun’s Feixuan 4-Channel R/C Helicopter
         Metal Upgraded Ver. can easily perform the perfect stunt of knife edge.
         With gyro made in United Sates, it can rotate in 360 degree, go to the precise
         position and hover in air. Eco li-ion battery and recharger make longer flight. Dual
         protection function on starting and low voltage, as well as anti-locking rotator
         system guarantee you a safety playing time.

Big Horse G4-Channel Metal                                                   Mid-Size R/
C Helicopter from Jiajun                                      c a n       perform the following
stunt: ascend/descent, fly back and                     fro, turn left/ right, left/right knife
edge, hover, etc. It can fly as high as 50 meters and as far as 150 meters.

                        Attop’s latest model is the Formula R/C Helicopter 618, which feature the mini size as 11
                        cm long. With high intensity magnetic motor and durable gear, the new item also comes
                        with gyro from Japan and high capacity battery. It is easily controlled and makes precise
                        positioning. It flies in high speed and gives you exciting playing experience. Compact
                       fuselage, intellectual controlling system, anti-lock protection, safer flight… more are to be

    Subotech is rolling out the                                                        S902 Vanguard,
    featuring super-stable flight and                                                excellent break-resistant
    capacity. It is a large-size model                             w i t h         decelerating function that
    is suitable for both beginners and skilled                  hands. Controllable LED light and unique trendy
    design in both product and package.

                3-Channel 2G407 Helicopter from Kaiyu Toy can ascend/descend,
                go forwards/backwards, and turn left/right within the range of 25 meters.
                With precise positioning and stable flying, it is highly suitable for newcomer.

7                                                                                                 TOY INDUSTRY APR, 2011
Features: R/C Flying Toys

            Overseas Flying Playthings


     n the not too distant past flying toys were                Indoor R/C helicopters
     restricted to the realm of the dedicated                        Indoor R/C helicopters come in a range of
     enthusiast, as they tended to be large, expensive      styles and complexity from basic 2 channel models
     and required a large amount of space to fly them       to the more sophisticated 4 channel models. With a
in. But as technology has moved on, flying toys have        2 channel indoor R/C helicopter, 1 channel controls
both shrunk in size and price, just like everything         the speed of its main rotor while the other channel
else.                                                       controls the tail rotor speed which allows the
    Nowadays flying toys are easily within the reach        helicopter to turn. In a 4 channel R/C helicopter more
of the average household, with prices starting at           control can be gained over the flight, with the first 2
around $24, you don't even need a large garden, or          channels still regulating the 2 main rotor blades. The
any garden at all for that matter. Some flying toys         3rd and 4th channels control forward and sideways
have been reduced in size to a point where they can         movement by altering the angles on the main rotor
now be flown safely in your own living room.                blades. They are basic examples, but you can see
    The indoor flying toy market has exploded               that the more channels the indoor R/C helicopter has
recently with a whole plethora of new designs               the more control you will have over its flight path.
entering the market including radio controlled                  You may have also noticed that some indoor R/
helicopters, aeroplanes robots and even fairies.            C helicopters have one single main rotor and others
    Helicopters are probably the most popular               have 2 (coaxial) rotors. The coaxial varieties tend to
indoor flying toy as they especially suited being           be more stable in flight, single rotator helicopters
flown in smaller rooms, as they are able to take            create a lot of angular momentum and need a tail
off and land vertically and hover in the air. If you        rotator to keep them flying in a straight line instead
have a large open plan living room or garage, then          of just spinning helplessly in the air. The twin rotators
mini aeroplanes are great fun. So let’s take a look         rotate in opposite directions canceling out each
at a closer look at some of the indoor flying toys          other angular momentum which means they have no
available at the moment.                                    need for a vertically aligned tail rotor.Other

      The world of flight just got bigger with the Air Hogs Pocket Copter
      from Spin Master. Choose your adventure as you experience the
      power of Steady Fly Technology. Lift off from the palm of your hand
      and explore gigantic territories. Witness the plastic hard body's
      resiliency to the hardest of crashes. Transform the packaging
      into a charging carrying case to bring the Pocket Copter
      wherever you go.

8                                                                                          TOY INDUSTRY APR, 2011
Features: R/C Flying Toys

                                    Micro Trooper Transport by Venom is perfect for taking on missions in your
                                    living room from the coffee table base to the sofa mountain range. With dual
                                 counter rotating blades, you will be able to easily navigate through tight living
      room canyons. The Micro Troop Transporter's rugged design and flexible rotor blades will stand up to the
      rigors of active duty in your home. Painting of Jungle, Desert and Blue are available.

           Takara Tomy’s Heli-Q rolls out new model, including military and civil
           design, coming with cute appearance. One single hand can handle the
           simplified IR controlling system. It can fly back and fro as well ups and downs.

    Indoor R/C aeroplanes
         The main difference with indoor R/C
aeroplanes and helicopters is the amount of space
needed to fly them. Whereas a helicopter can hover
and take of vertically, an aeroplane needs to be
continually moving forward so in small rooms you
will find the plane is constantly hitting the walls. For
most indoor R/C aeroplanes you would probably
need somewhere like a sports hall to fly them, but
some of the smaller and slower versions you may be         Revell Piloto Radio-                            Controlled
able to use in a large open plan living room or large      Plane is perfect for           f l y i n g around in the family
garage.                                                    room! This durable        radio-controlled plane bounces off
   If you don't have access to a sports hall or have       walls and keeps on flying. The Piloto climbs, descends and
a massive lounge but still want an indoor R/C              turns just like a typical remote-control plane but is made
aeroplane you could consider something like the V22        of durable foam with a carbon fiber rod fuselage, so crash
Vertical Take-off aeroplane. This merges both the          landings won't stop the fun. Even the electronic components
helicopter and aeroplane into a single flying machine,     are super-lightweight. A hand toss gets you airborne for flying
giving you the best of both worlds.                        adventure that can extend to a range of 100 feet.

               Multiplex Easy Star RTF Electric RC Airplane from Draganfly is designed with first time pilots in
                mind, and offers incredibly stable flight characteristics and durability. The Easy Star requires
                        little effort to fly, and has the ability to recover easily. Suitable for outdoor play and its
                       wingspan is 137cm.

      Coming with top quality balsa and plywood construction, Nitrotek’s T-34                      Mentor –
      40 is perfect for beginners who have graduated from shoulder wing trainer. Also comes with built-up wing
      and two pre-painted pilot figures. There are special races have been organized based on this model. Now
      available in red, cub yellow, orange and blue color scheme.

9                                                                                               TOY INDUSTRY APR, 2011
Features: R/C Flying Toys

     Other Indoor RC Flying Toys                         Nikko Radio Control J-kart is a superfast R/C kart able to
                                                         drive, drift, jump and fly! It has a unique suspension system
        If you thought indoor flying toys were limited
                                                                            that allows for fast drifting and cornering. Hit
to just helicopters and aeroplanes then you would be
                                                                               the special boost button and the J-Kart will
mistaken, as there are other styles of R/C flying toys
                                                                           jump over obstacles!! Flying is possible too,
available to you. While I'll admit the majority are
                                                                       stability and ease of control are the features that
based around either the aeroplane or helicopter,
                                                                                stand out.
such as flying robots, that utilize the helicopters
rotor blades to give them flight, there are other
toys that seek to imitate nature with flapping wings
such as the I-Fly Vamp Bat or the I-Fairy.
    These natural flight indoor R/C flying toys or
ornithopters actually flap their wings in order to          EXTREME Indoor/Outdoor 2
leave the ground and fly. I-Fairy's flight tends to         Player RC Duck Hunting
resemble that of a humming bird and is even able to         G a m e f r o m I n t e ra c t i v e                    To y
hover. It's suitable for both indoor and outdoor use,       offers the ability to be either the                   duck,
so now you really can have fairies at the end of your       or the hunter. Radio control duck                       flies
garden.                                                     away with real flapping wings.                           Use
                                                            the radio control to make the d u c k t r y
                                                            and avoid getting hit by the hunter. Infrared shooter fires
                                                            infrared beam. Hit the duck three times to send it gliding to
                                                            the ground. Bring the hunt indoors. Duck hunter extreme is
                                                            perfectly safe to use inside.

                                 Mach IIIz Goodyear RC Indoor Remote Control Blimp from Draganfly is a great
                            3-channel blimp provides hours of fun for the entire family at a great price. A perfect
          gift!         It is propelled by three independently controlled electric fans to provide forward/backward,
up/down and left/right movement.

     Hi-tech Innovative Flying Toys                        Hawk Eye                          is a new model of Spin
    Besides the above types, we also see some              M a ste r ’s A i r               Hogs line. With an odd
high-tech invention with creative idea for play. With      face, it is the                first helicopter with built-
intellectual and trendy pattern, the following items       in photo and                   video camera with steady-fly
offer us experience o sci-fi.                              technology. You                can share video with your
                                                           friends online to             see more fun. It certainly can
                                                           fly like common helicopter and make stunt. Suitable for
                                                           both outdoor and indoor play.

                  Another reforming design from Air Hogs is the Vectron Wave Radio Control UFO. Here there’s
                   no need for a remote control, just use your hand for new ways to play. Obstacle sensors
                   detect proximity - like magic!

       Parrot’s AR Drone Quadricopter has been attracted great attention since
       it debuted in several key toy fairs and consumer electronics shows. With
       astonishing 4-rotors drive, it features an in-design of fuselage. Coming with
       built-in camera and sensors and controlled by iPhone, iPad or iPod Touch.

10                                                                                               TOY INDUSTRY APR, 2011
      H   ot Topic

                                                    Dejected Barbie’s
               before Barbie came
           to her 50 years’ birthday, the           BY ZHANG JIAXIONG
        first flagship store for Barbie Doll
      in the world was opened for business in
     Shanghai on March 2009. Situated in the        MC- ZHANG JIAXIONG
     busy high street, the store covered 6 floors   GUESTS - XIONG WEI (Career manager); XIN DONGSHENG
     of 3,500 sqms to display brand products,       (Sales manager of Fun Maker Company Limited); LIURONG
      as well as providing fashion service.         (manager of Guangdong Toys Street); LONG SHAOYUAN (Dream
       However, 2 years later, the giant            Entertainment Co., Ltd)
          regular chain store announced to
             shut out permanently on
                   March 7, 2011.

MC: As a famous name, Barbie met her Waterloo in China. How do you think about it?

 Official statement of Mattel: Barbie Shanghai flagship store is only a kind of concept outlet that dedicates
 to promotion of brand and culture. During the past two years, Mattel has fulfilled its task. And now considering
 the huge China’s market, Mattel decides to expand its successful experience to wider area in China. Therefore,
 closing the flagship store is among the strategy of enhancing brand influence.

 Chongchong (a Barbie fan and netizen): Frankly, it is quite an embarrassing situation for Barbie’s regular
 chain. I am a super fan for Barbie doll but things in the flagship store are just too expensive and there are few
 really good models. I seldom buy things there. There was one time I really had nothing to say. I visited official
 site of Barbie and saw an exclusive product that member can buy so I turned to the flagship store to see the real
 thing. To my disappointment however, sales staff told me that they don’t have the product. I am also dissatisfied
 with the gift that I exchange with previous expenditure. After I spent 3,000 yuan, the only gift I can get is a plastic
 bracelet that is in low quality. I don’t think it worse more than 2 yuan. All these highly disappointed me.

 Xiong Wei: To large extent, I think Barbie store closed due to its unclear orientation. When the splendid Barbie
 flagship store opened in Shanghai, it once has attracted great attention. This so-called first “scene experiencing
 shopping center” for girl in the world sworn to lock on ladies around 30 years old, as well as their girls. Fingernail
 fashion, facial, trendy apparel and all other trendy service are in deluxe style, impressing people with the luxury
 life of Barbie.
     However, though Barbie has been 50 years old, she is still a young girl to Chinese consumers. Just imagine,
 what will you think a 30-year-old lady is doing her nail or buying clothes in Barbie store, or directly wear premium
 clothes to walk in street?

 Long Shaoyua: International brand should have localized business practice. China is a market that relatively
 sensitive to price.            Barbie’s high price point forces herself to a dilemma. Even in Shanghai, she is hard to
 reap good profit.
    Moreover, it               seems to have weak campaign, with a few promotion events. Only with a flagship
 store for                     portrayal, it is hard to expand business.

11                                                                                              TOY INDUSTRY APR, 2011
      H    ot Topic

  Xin Dongzheng: American Barbie does not experiencing the growth with China’s consumers. As a result,
  Chinese people are not loyal to Barbie dolls. During the recent years, home-made fashion dolls similar to Barbie
  are gradually rising domestically, like Kurhn and Lejier, which are some kind of impact to Barbie.
     As I know, Barbie only gets about 100-million-yuan sales annually in Chinese market, while Lejier exceeded 60
  million yuan last year. China’s market is characterized and discomfort most foreign brands. Only dolls that blend in
  Chinese culture                can display great vitality.

MC: Local brands like Great Dream and Deesha are trying to pursue the business pattern of
theme life store. What kind of lesson can we draw from Barbie?

  Xiong Wei: I think most of all theme life store can hardly attract consumer to buy something. Whether they
  can survive depend on what kind of consumption impression they can offer, instead of amount and categories of
  products. Do not make theme life store into an exclusive department store for minority.

  Liu Rong: To theme store for single brand, right appraisal upon retailing market is most important. We need
  some time to develop and explore retailing market.
  High rent is also a burden. Take Guangzhou for example, China Plaza, where Disney consumer products store are
  located, require you 300 yuan for each square meter. Consumption on children’s merchandises, especially toys,
  appears to see distinct difference between slack and busy seasons. It is hard to do business when you only try to
  use sales value to offset cost.
     What is more significant? China’s consumers show low loyalty to single brand. They chop and change upon
  luxury goods, let               alone toys. Developing brands, enhancing consumers’ recognition and cement their
  confidence                     might the premise to open regular chain.

MC’s conclusion: Considering the above views, Barbie fired into the wrong flock when she was in
China, including location selection, price decision, service, administration, promotion campaign
and consumers’ loyalty.
    On the other hand, local brands also encounter similar baptism. They have the wonderful
dream to expand income by multi-categories of licensed merchandises. However, it is known
that, not-high-enough brand reputation does not boost consumers’ recognition and actual sales.
When a large amount of new toys and kids ‘apparel are overstocked, some of theme regular
chain meet loss.
   Breaking conventional sales pattern of toys
and adopting concept of life store combing
apparel, shoes, hats and stationery displayed
a new graph for toy makers that once
struggled in Red Sea of price.
   “While prospects are bright, the roads have
twists and turns.” Trade expert suggested
that, when considering brand regular chain,
we have to evaluate our base of consumers
and never take radical measures to develop
licensed products. The way of new pattern
may be less rugged and rough.

12                                                                                             TOY INDUSTRY APR, 2011
       W      holesales Roundup

Jiangsu:                                                         Hebei:
Calm Market Expecting the Coming Toy Show                        Sales for Outdoor Sport Items Gearing Up
in Guangzhou
BY WU QUANGUAN                                                   BY ZHANG LIHUA

   As the rule for domestic toy retailing in former years,            When toy sales in Shijiazhuang recuperating from
March did not bring exciting highlight to Suzhou’s toy           the sales season in the Spring Festival, some baby and
market. Mid- and lower-end toys are comparatively                infant products and outdoor sport items are rising in
popular in these days as a whole.                                l o ca l m a r ket .
   Auldey’s Blazing Teens Yoyos, Shunjia’s In the Night          Since spring is
Gardens and Lingdong’s Happy Toon see moderate                   also a prime
sales, instead, licensed merchandised of Distal-4,               time for giving
RoboWarriors, Howie & Landao go well with the airing             birth, baby
of animation programs. Meanwhile, Readboy, Dbolo,                strollers, cribs
Haoxuebao and other preschool learning tools also see            and other baby
good transaction. Summer playthings like R/C boats and           merchandises
beach toys start to see another round for peak, which are        reap greater
available in supermarkets and department stores now.             p r o f i t
   Toy companies are actively launching new products             than other
most recently. Lingdong, Toys Street and Huawei held             categories.
their conference for new-product launching this March,                Bed rattles,
demonstrating new animation programs, including                  flashing music
Superband and Longdou Taiqiu, and related toys to                tambourine from Nanguo, bed rattles and activity gym
distributors.                                                    center from Wuxing, tricycle from Goodaby, strollers
                                              Guangzhou          from Haotian, cribs from Baoerjie and strollers from
                                              I n t ’ l To y     Baobaohao are all meeting good sales recently. For
                                              and Hobby          example, Nanguo’s bed rattle features cute cartoon
                                              Fair is to         character, which can attract baby’s attention and comfort
                                              kick off this      them with wonderful visual and sound effect. Flashing
                                              April and          music tambourine is a brain-training toy designed for
                                              we hope to         baby according to different physiological stage, which will
                                              see more           develop their sense on color and voice, as well as hand-
                                              wonderful          brain coordination. Its aid in healthy growth makes it
toys with reasonable price to create market sensation.           popular toy among parents.

Eco-Friendly Toys to Rise as Mainstream in

   Although sales in Jingjiu International Toy Center in Dongguan, Guangdong, declined in March when compared to
the previous year, some highlights still deserve our attention.
   Electronic and electrical toys with brain-training value see some rise out of stable transaction and Huile makes good
sales among baby and infant realm. Other plastic toys, wooden toys and music peg-tops continue to receive great sales
due to their price point, while sound-controlled dolls tend to gain greater shares than other sound-controlled toys.
Eco-friendly toy flower, green dolls and inflatable toy cars that need no batteries are receiving greater attention from
purchasers. Lots of merchants believe that, energy-saving and environmental protection would be the development
trend for electrical and electronic toys and this would boost the technology upgrade.
   Collectible die-cast cars are also among the favorite products. Audi Q7, BMW X6, Lamborghini Murcielago from
Xinqiang are bestsellers, while a radio-controlled transformable car from Shuangying, a new brand, also get good
results. R/C airplanes just keep steady market.
   Most of tenants in Jingjiu International Toy Center are in first floor now, since the second floor is still inviting for new
business. It covers wide categories of toys, including die-cast car models, R/C cars and planes, as well as baby brain-
training toys.

13                                                                                                  TOY INDUSTRY APR, 2011
         F   air Insight

         As the wind vane for China’s toy market, Guangzhou
     Int’l Toy and Hobby Fair is going to kick off from April 8,
     2011, concurrent with the Guangzhou Int’l Baby Product
     Fair. TOY INDUSTRY is proud to have a preview upon the
     latest and best products in the fair to come.

Product Sneak Peek of
Guangzhou Toy and Baby Product Fair

             o cope with rising of labor cost and higher raw materials price, toy makers seek way-out with developing
             new products, adding hi-tech elements and enhancing cultural notion. As a result, a kind of “crossover”
             marketing emerges as the time requires, by which toy companies are taking active progress to explore
             new profit.

     “Crossover” can be considered one of the keywords for marketing these years. It means the combination with
  two products that originally share nothing in common and the new one features the traits of the former two
  elements. It is used to realize the greatest market shares and profits for crossover business runners.

    In this year’s Guangzhou Int’l Toy and Hobby Fair, we will see lots of products with “crossover” style: animation
  plus toy, toy plus baby product, toy plus hobby model, toy plus digital product… all demonstrate us super
  innovative creation.

      Welcome to our site to see more exhibits and companies of this fair: www.

14                                                                                             TOY INDUSTRY APR, 2011
      F   air Insight

Zhongshan 100-Fun Children Articles Co., Ltd. became exclusive licensee for Kitten-Dream for
DIY toys, chess and eco-friendly dough in the year of 2009. This 3D City Paper Construction Kits is
finished to be a cute fantastic world of Kitten-Dream, coming with vivid animation style.

       With clever design, this 3D Bubble Sticker from Shenzhen Jintaihang Science And Technology Co.,
       Ltd. offers different figures with kid’s imagination. Giving different clothes and accessories to figure,
       kids can develop their aesthetic consciousness. At the same time, it benefits integration sense and
       coordination capacity. Both kids and adults would find their own funny moment with this sticker.
Cartoon characters, fruits, flowers and more are to be discovered. Just use them to decorate your room!

Guangzhou Tai Tat Trading Co., Ltd. is rolling out a Maisto SLS AMG Crystal Limited Edition. This
1/18 die-cast model car features more than 7,800 Swarovski crystal. Its doors can be opened
and its wheel will turn when you rotate the steering wheel. It also features suspension system.
Coming with deluxe black leather box and wooden display base.

        BodyGuard for Baby is a key brand of Wise-Box Technology Industrial Co., Ltd. Now it is launching
        a new ultraviolet radiation sensor, a good outdoor pal for baby. Different color behind Hippo
        Sister’s head tells you the ultraviolet radiation level and whether it is good for baby. Additionally,
        Hippo Sister is also a rattle to develop baby’s listening.

CAMZ Kids’ Camera from Eternal Electronic Technology Co., Ltd. can take photos, recode video,
add digital photo frame, play video and audio, and edit your photos. 20 classic fun games are

        Tongbaole Sleeping Revolving Light from Shantou Jinxing Plastic Co., Ltd. will surely attract baby’s
        attention with its merry-go-round scene. Soft light, lovely graph that projected and lullaby will
        bring baby into sweet dream.

15                                                                                       TOY INDUSTRY APR, 2011
      F   air Insight

The electronic construction kits from Guangzhou Dbolo Electronics Co., Ltd. is here for kids to DIY
a super toy that can be controlled with magnetic, light and radio. It can be a music doll bell, UFO,
alarm or power generator. With full-color user guide, kids can easily learn how to finish the works.

       GT302 the Tank from Guangzhou Fuhuan Trading Co. is based on the United States’ M4A3 tank
       in WWII. It can move back and fro, with full rotating turret. Its gun can ascend or descend. With
       fashion design and great power, it is best for role-play game.

Shenzhen Shunjia Toys Co., Ltd. launches several licensed items from In the Night Garden. R/
C Pink Ponk features great improvement in function, based on its vivid shape. With wireless
controller, it can move forwards and backwards, as well as turn left or right within 10 meters. Also
coming with the real sound and light effect just like the animation series.

             Shantou Chenghai Oubao Plastic Toys Factory’s stick-and-paste game provides you EVA pieces,
             beads and sparkling pieces. You can make a conservative design when follow the example of
             user’s guide, or let go your imagination to create your unique arts works.

Qiaoqiao Forest House keeps kids busy in body exercises and good team work. Produced by
Wenzhou Qiaoqiao Toys Co., Ltd, this role-play playhouse is a highly detailed works.

             This baby stroller from Zhongshan Dongsheng Tongle Daily Products Factory adopts 5-points
             safety belt to safeguard baby. Fore handle can be removed. With one hand, parent can adjust
             the backrest and push a button to fold it. With one foot you can also set the dual brake. Ellipse-
             shape frame tube and clear liquid paint display a most fashionable style.

16                                                                                      TOY INDUSTRY APR, 2011
     F   air Insight

     TOTY Awards Announced

        he 108th session of Toy Fair was held during February 13 to 16, 2011 in New York. Exceeding
        100,000 items of latest playthings were demonstrated, attracting 10,305 buyers from 91
        countries and regions. There is sharp rise in executives from licensees, entertainment and
      Moreover, Toy of the Year (TOTY) Awards program has come to its 11th year and the winners are:

     Award                            Winner                                Company
     Toy of the Year                  The Sing-a-ma-jigs!                         Mattel, Inc.
     Activity Toy of the Year         Crayola Color Wonder Sound Crayola, LLC.
     Boy Toy of the Year              NERF N-Strike Stampede ECS Hasbro, Inc.
     Educational Toy of the Year      L e a pste r E x p l o re r L e a r n i n g LeapFrog
     Game of the Year                 Scrabble Flash                              Hasbro, Inc.
     Girl Toy of the Year             Squinkies Cupcake Surprize! Bake Blip Toys
     Infant/Toddler Toy of the Year   My Own Leaptop                              LeapFrog
     Innovative Toy of the Year       The Sing-a-ma-jigs!                         Mattel, Inc.
     Outdoor Toy of the Year          NERF Super Soaker Shot Blast                Hasbro, Inc.
     Preschool Toy of the Year        The Sing-a-ma-jigs!                         Mattel, Inc.
     Property of the Year             Toy Story 3                                 Disney Consumer Products
     Specialty Toy of the Year        HEXBUG Nano Habitat Set                     Innovation First Labs

17                                                                                             TOY INDUSTRY APR, 2011
        O    verseas Express

   Customization Takes Activities
   to A New Level


          rts and crafts continued to be a popular            craft kits that are specially designed for younger children
          category last year. Following in the footsteps      and come with illustrations as instructions. The kits
          of 2009, which saw a “back to basics” trend,        includes familiar objects such as cupcake liners (Cupcake
          activity sales continued to reside at the top of    Crafts) and pop sticks (Pop Stick Art), aiming to expand
total toy industry sales because of low prices and play       kids’ imaginations and challenge them to think of creative
value. According to October research from The NPD Kids        uses for everyday objects.
Industry Data Service (KIDS), a new tracking service from          Darcy Morris, director of sales and marketing at
The NPD Group, year-to-date arts and crafts sales totaled     SmartLab Toys, believes the younger kids start to
$1.96 billion, a 1 percent increase from last October’s       gain confidence, the easier it will be as an adult. “It is
$1.94 billion. The supercategory was only topped by           important to empower kids to express themselves in
outdoor and sports toys ($2.02 billion).                      creative ways while they are young and fearless,” says
   While the backbone of activity products remains the        Morris. “If they have the confidence to do so as a child
same, aiming to inspire creativity among kids, more arts      they are more likely to do so as a teenager and as an
and crafts products that tout words such as “customize”,      adult. Creative thinkers become problem solvers in
“design” and “personalize” are popping onto store             every field from politics to science. It all starts with the
shelves. Gone are the days when every child’s final           confidence and support to think outside the box.”
creation looked the same; new technology has made it             With SmartLab’s Car Design Studio, a child that might
easier for kids to design their projects with their own       not be the best at drawing can still create unique, well-
special touch.                                                designed cars, and children who are more adept at
    “ This new generation of young people has an              illustrating can hone their skills. In the end, each child
expectation of customization, which is extending to           will have their own personalized car design that he or she
crafts,” says Michelle Manning, director of marketing         can feel proud of.
at Giddy Up, a division of Elmer’s. “Children can go on            Box Creation’s play structures allow children to
the internet now and customize a pair of sneakers and         become part of what Managing Partner Renee Hebert
have them delivered right to their door. They are also        calls the “finished piece.” “Our playhouse products come
designing their own web pages and albums, customizing         unassembled in a box and within minutes a beautiful
music mixes, publishing blogs, and more. It just makes        playhouse is constructed,” says Hebert. “The [play value]
sense that they should also expect to extend that             continues with coloring and decorating, in addition to
customization to their clothing, décor, crafts, etc.”         role playing with each theme, such as pirate ship, castle,
   Giddy Up’s Fuzxzoodles line enables kids to create big,    and carriage.” Once the play structure is colored and
fuzzy noodle characters as they envision them. The open-      decorated to the child’s desire, they can share their
ended play allows kids to create products over and over       work of art with family and friends. Parents can also get
again, with no two creations being quite the same.            involved and take pride in their child’s work.
                                                                  “A big part of the fun of arts and crafts is not just the
Cultivating confidence and enhancing imagination              final outcome, but the process and the experience,” says
    “Activities are not only important for encouraging,       Giddy Up’s Manning. The company plans to focus on this
creative expression, they help young children improve         aspect for its future activity products. “Arts and crafts
hand-eye coordination, dexterity, concentration, and          are all about taking an idea and making it one’s own—
build self-esteem,” notes Nurit Amdur, CEO of Alex Toys.      creative expression. Some kids can pick up a pencil and
“It’s fun for children to explore their creativity and take   be so incredibly creative. But other kids need different
pride in a job well done.”                                    mediums and arts and crafts are ideal.”
    Next year, Alex will introduce seven new Little Hands

18                                                                                             TOY INDUSTRY APR, 2011
        O    verseas Express

Giddy Up-Fashion
Fabric Sprayza
Deluxe Kit
    It’s designer powered.
No batteries required.
With this kit, kids stencil and then design their
own accessories, jeans, hats, T-shirts, and more.             SmartLab-Car Design Studio
Designers use the stencil to create the pattern and
                                                                  SmartLab has improved its Car Design Studio
then insert the Sprayza Fashion Marker into the
                                                              kit by adding a light table and new packaging.
Sprayza Toll and blow to create the airbrushed effect.
                                                              With the product, kids
The Deluxe Kit includes eight Fabric Sprayza Marker
                                                              ca n d e s i g n co u nt l e s s
Pens, one Sprayza Airbrush Tool, six 5.5-inch by 8-inch
                                                              r i d e s - f ro m M u sta n g s
Sticky Back Stencil Sheets, four 4-inch by 6-inch
                                                              a n d L a m b o rg h i n i s t o
Sticky Back Stencil Sheets, one Sticky Back Alphabet
                                                              Civics and Volkswagen
Stencil Sheet, and one instruction booklet.
                                                              Beetles—by using the car
                                                              parts and the new LED-
                                                              powered light tablet. The
                                                              kit includes the light table,
Crorey Creations-My Friendship                                six acetate car bodies, 95
                                                              car body accessory clings,
Bracelet Maker                                                10 colored pencils, and
   Originally conceived after inventor David Crorey           sketch paper, plus an illustration book that can
saw his granddaughters struggle to make friendship            give kids inspiration and features car facts.
bracelets, Crorey Creations, Inc. has released a
product that simplifies how to design and create the
jewelry item. My Friendship Bracelet Maker, for kids
ages 6 and older, features an adjustable butterfly
                                     clip at the top          Box Creation-Pirate Ship
                                     to hold strings          Box Creations is launching a new cardboard play
                                     in place, row of         structure with a real working steering wheel, the Pirate
                                     numbered pegs            Ship. The classic pirate ship design is large enough
                                     at the bottom            to accommodate two to three children and includes
                                     to keep strings                                     preprinted line work and four
                                     in order, and a                                     colored, non-toxic, washable
                                     slide-out storage                                 markers so kids can recreate
                                     tray to organize                                their favorite pirate fantasy at
                                     a n d t ra n s p o r t                            sea. The secret flap in the
                                     extra threads.                                          back of the ship makes
Each kit comes with 56 pre-cut, 60-inch threads in                                             it easy to enter the
14 different colors, as well as directions for how to                                          ship conspicuously,
create a variety of designs.                                                            but watch out for the sharks

     RoseArt—Color Blanks
     RoseArt introduces new Color Blanks, bringing the total offering to 19
     designs. Color Blanks are design-free plastic figurines that kids and artists
     can decorate themselves using the included stickers, markers and more.
     Packagers come in theme such as Hairdos, In-Motion and various designs for
     Easter, Halloween and Christmas. The 3-D customizable characters are for
     kids ages 6 and up.

19                                                                                            TOY INDUSTRY APR, 2011
      Q   uality Inspection

          Toys Recall Report of US CPSC
                         WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission
                         announces the following recall in voluntary cooperation with the firm below.

OBall Links & Mini Rattles                       Butterfly Push Toy
Report Released Date: March 3, 2011              Report Released Date: January 25, 2011
Units: About 14,000 in the United States         Units: About 1,440
and 14,000 in Canada                             Distributor: Kang Sheng Group, of Lexington, N.C.
Importer: Rhino Toys Inc., of Santa Cruz,        Hazard: The plastic balls on the butterfly's wings
Calif.                                           can break, causing small metal balls inside to
Hazard: The hard plastic C-links on both         come free. These metal balls pose choking and
ends of the rattles' soft plastic chain can      aspiration hazards to young children.
break, posing a choking hazard to young          Incidents/Injuries: None
children.                                        Description: The recalled toy is plastic. It has
Incidents/Injuries: Rhino Toys has               a 21-inch long handle hooked like a cane. At
received one report of a broken C-link.          the end of the handle is a butterfly with two
No injuries have been reported.                  movable 1 1/2-inch balls in each wing. The toy
Description: This recall involves infant         comes in various colors and makes noise when it
rattles called OBall Links & Mini Rattles.       moves. The item number L185819 is on a sticker
The soft plastic OBall is 2 1/2 inches in        on the package.
diameter and has beads inside a small            Sold at: Flea markets in North Carolina and
plastic bubble that make the rattle sound.       South Carolina from May 2010 through October
The OBall is attached to a 7 1/2 inch soft       2010 for about $2.
plastic chain by C-shaped plastic links on       Manufactured in: Hong Kong (China)
both ends. "OBall" is stamped into the
top of the plastic chain.
Sold at: Toys R Us and other specialty
toy stores nationwide from April 2010
through December 2010 for about $8.              Remote-Controlled Toy Tanks
Manufactured in: China                           Report Released Date: January 25, 2011
                                                 Units: About 67,000
                                                 Retailer: Family Dollar Stores Inc., of Charlotte, N.C.
                                                 Importer: Family Dollar Services Inc., of Charlotte, N.C.
                                                 Hazard: The tank's controller can overheat and melt, posing a burn
                                                 hazard to consumers.
                                                 Incidents/Injuries: Family Dollar has received five reports of the
                                                 controllers overheating and melting. No injuries have been reported.
                                                 Description: This recalled product is the Authentic Heroes Target
                                                 Practice Tank play set, a remote-controlled green toy tank attached
                                                 by a cable to a grey battery-
                                                 p o w e r e d c o n t r o l l e r. T h e
                                                 controller requires three AAA
                                                 batteries to power the tank to
                                                 move forward and backward
                                                 and the tank turret to rotate and
                                                 shoot projectiles. The controller
                                                 is marked "Target Practice Tank
                                                 Play Set."
                                                 Sold exclusively at: Family
                                                 Dollar stores nationwide from
                                                 September 2010 through
                                                 December 2010 for about $5.
                                                 Manufactured in: China

20                                                                                                  TOY INDUSTRY APR, 2011
           SIDELIGHTS                                                                                  China

C henghai T oy E xpanding I ts O wn G lobal Taiwan Merchants Suspend Buying Toys from Japan
                                              According to Taiwan media news, magnitude 9 earthquake and
Shares                                      possibly-expanded nuclear hazard in Japan, lots of merchants
    Chenghai, a district in Shantou, GD, is now      in Taiwan suspend importing toys from Japan due to the fear of
taking active steps in exploring global market,      nuclear contamination.
coming with direct trade relation with 129              Many toys made in Japan are distributed through both brick-
counties and regions.                                and-mortar stores and online shops. A majority of these are
   At present, Europe and United States remain       imported through Taiwan distributors and some will directly
the major export destination for Chenghai,           brought from Japan. Still some shoppers buy toys by help of
digesting 603 million US dollar last year,           online purchasing agent.
which made up 53.3 percent of total export              An owner from a store in southern Taiwan said he decides not
of Chenghai. Business in emerging markets            to make stock from Japan temporarily for fear that consumers do
like ASEAN, Middle East, Central America and         not dare to buy Japanese products. A super fan of Japan’s toys
Ukraine is also gearing up.                          also said frankly that, he will not buy toys from the area until
    Among Chenghai’s exported products, toys         there is effective way to control the nuclear hazard.
and gifts see greatest growth and largest
amount, recording a 508-million-US dollar in
value last year. In 2011, Chenghai endeavors to      Shanghai White-Collared Love of Toys
promote the collective brand as “Chenghai Toy”           Picking up some opportunity out of toys for adults, Li Yanan,
and quickens its step in registering Madrid Union    a young girl from Qinghai, opened an Adult Original Toy Club in
trademark, so as to expand its market shares at      Shanghai. Much to her pleasure, the store now gains profit as
home and abroad.                                     high as 50,000 yuan every month.
                                                         Toys for adults are prevailing trend among western white
Unqualified Plush Toys Disclosed on March 15         collars. They love playing all
                                                     kinds of brain-challenging and
    CCTV held a special evening on March 15,
                                                     entertaining games to relax
releasing an authoritative survey about some
                                                     themselves. In Japan and
products including plush toys. Totally 13
                                                     Korea, instead of young kids,
unqualified kinds of plush toys from 11 makers
                                                     adults become the main players
are disclosed during the spot check in the first
                                                     for toys and games. Over 40
quarter this year.
                                                     percent of products in each
    The spot check was carried out by AQSIQ,
                                                     year of US’s toy companies are
covering plush toys and paper diaper. Totally
                                                     specially designed for those stay
86 kinds of plush toys produced by 56 makers
                                                     in office. But in China, annual
in 7 provinces/cities underwent the test,
                                                     consumption on toys for adults
including mechanical and physical performance,
                                                     is only 16 yuan at average. It is
combustion performance, heavy-metal element
                                                     basically a blank area.
migration, surface materials, quality of filler,
                                                        Li is so inspired to be a player
mark & label etc. The spot test revealed
                                                     in the market. As a trendy
unqualified products of 13 kinds from 11 makers.
                                                     commercial metropolis in China, Shanghai has large quantity of
Another 10 kinds of products are inappropriately
                                                     white collar and that is the reason for Li to open her store, which
marked and labeled.
                                                     in fact reaps good profit.

G oldlok G ains 1 0-Million-Yuan F inancial
Support Funds                               Xinghui Auto Model as the New Licensee for Ferrier Action
   According to a notice concerning special Die-Cast Cars
fund product released by the Economic and                Guangdong Xinghui Auto Model Co., Ltd lately announced
Information Commission of Guangdong Province,        that it has reached new licensing agreement with Ferrier, the
as well as measures to support civil economic        famous Italian auto maker.
development of Puning city, Guangdong Goldlok           According to the company, its wholly owned subsidiary, Rastar
Toy Co., Ltd. gains a supporting fund of 2 million   (HK) Industrial Co. Ltd. recently received a confirmation letter
yuan from Guangdong province and more 8              from Ferrier about the licensing agreement. It means that the
million from Puning municipal government.            company is able to produce and distribute all action models of
   The total amount will be included in the 2011     Ferrier cars in regular scale.
Annual Income Statement, in accordance with              It is known that, Xinghui ranks high in mainland China for
“Accounting Criteria for Enterprises”.               licensing amount, which is licensee for 25 brands of auto cars.

21                                                                                             TOY INDUSTRY APR, 2011
           SIDELIGHTS                                          international

                                                                       Japanese Volunteers Make Toys out of Waste
Hasbro to Challenge Legos with 'Transformers'
    According to AP news, Hasbro, the No. 2 U.S. toy maker, is
joining the building-block fray with a new line called Kre-O that's        Volunteers in an institute named “Dragonfly
compatible with LEGO blocks. The first products feature popular        Studio” in Higashimurayama, Kyoto, Japan are
Transformers characters like Optimus Prime and Bumblebee.              making toys with abandoned large-size furniture.
    Kre-O, launching in the fall, is intended to grab part of the      Sold in low price, these toys are rather popular
booming construction set business that Lego dominates. While           in local community.
total U.S. toy revenue rose 2 percent to $21.87 billion in 2010,           Drag-and-pull toys with shape of rabbit and
according to the NPD Group, building set sales jumped 13               pony, toy cars, garden pot with cat’s face and
percent.                                                               owl decoration kit and more items are available.
   The line will launch with 12 Transformers sets. Hasbro plans to     Totally 50 kinds of creation are sold by the
expand Kre-Os to its other brands eventually.                          studio as well as in other event in the city. Profit
   Each Transformer set comes with two sets of instructions so         will used as operation fund and as the fund for
the same bricks build the vehicle version of the Transformer as        recycling department.
well as the robot version. Prices range from $6.99 to $59.99.
                                                                       Nintendo 3DS Debuts in Japan
Seniors Get Active with Video Games                                       Following its predecessor Nintendo DS, the
BY MORGAN CARLSON                                                      new-generation 3DS officially debuted in Japan
                                                                       on February 26 with a retailing price of 25,000
  A group at the Jackson County Senior Citizens Center, Fl. United                                              yen (about
States, got a big surprise– one that is sure to bring a whole new                                               300.88 US
level of activity and competition to the center.                                                                dollar).
   Representatives from the Pilot Club of Marianna presented a                                                  A large
Nintendo Wii video game console to the group. The surprise gift                                                 amount of
was met with applause and cheers from the seniors.                                                              fans lined
   The gift came at a perfect time. Just days before the Pilot Club                                             up in front
approached the senior center about the gift, the seniors decided                                                of store
during a meeting to spend their activity money on purchasing a                                                  t o b u y
Wii. A home health provider out of Panama City had brought a                                                    the new
                                 Wii to the center a few times.        handheld game consoles, some of whom even
                                 The seniors really enjoyed it and     stay all-night to wait for the start of sales. Totally
                                 wanted one of their own.              over 580,000 units have been sold out within
                                    Pilot International is a service   the two weeks, exceeding the record of DS.
                                 organization that focuses on          Europe and US will see their launches at the end
                                 brain-related disorders. The          of March.
                                 international organization              Nintendo 3DS boasts naked-eye 3D technique,
                                 promotes giving Wii systems to        but there are some Japanese fans say online
                                seniors to help keep them active.      that, after starting the 3D effect for minutes,
                                                                       their eyes are tired or even ache.

Panasonic Decides Not to Enter Game Console Business
                                                                       Argos Sales down But Toys Stay in Growth
                                                                          Argos owner, Home Retail Group, has cuts its
   Panasonic, a leading consumer electronics company, said that        profits forecast after reporting a drop in sales for
it had cancelled development of its Jungle game console. The           the final eight-week trading period for the year
device was supposed to be Panasonic's first gaming device since        ending February 26.
1993, but it did not fit into the company's overall strategy and          Like for like sales were down 4.6% and total
would also fit competition from smartphones.                           sales down 3.1%. The figures have prompted
    Panasonic Jungle game console was announced in October,            HRG to forecast a pre-tax profit of between
2010, and was supposed to be Panasonic's first video game              £250m and £255m, down from the January
system since the unsuccessful 3DO that was launched bask in            prediction of between £250m and £275m.
1993, but discontinued already in 1996 being unable to compete            The big losers were the video gaming and
against Nintendo N64, Sony PlayStation and others. The Jungle          audio markets, but toys was said to remain in
was designed for various MMOs [massively online multiplier             growth. Online sales improved to 36% of Argos'
games] and featured appropriate form-factor.                           sales from 33% a year ago.

22                                                                                                TOY INDUSTRY APR, 2011
                                                                                                        WHAT ’ S
                                                                                                        NEW ?

                                            Space Shuttle Discovery
                                        It is authorized licensed model
        Beach Toys                      kits from Dragon Models Limited,
                                        including Space Shuttle Discovery
     Kids over 3 years old              and Hubble Space Telescope. The kits
     will have their own                also include spectrograph, IR camera,                  Magic Mat
     favorite item among                spectroscopy and more. Suitable for
     these various beach                                                                  Collected with TV sets,
                                        young scientists over14 years old.                this Magic Mat is a
     toys in sharp colors.
                                        D R A G O N M O D E L S W W W.                    p re s c h o o l l e a r n i n g
     With eco-friendly
     design, products
                                        DRAGON-MODELS.COM                                 tool with 8 courses.
     are good present                                                                     K i d s w i l l c h a l l e n ge
     in summer outdoor                                                                    their capacity of
     playing fun.                                                                         memory, judgment,
                                                                                          analyses, thinking and

           R/C Transformable Robot
       MSD2201 R/C Transformable Fighter
                                                                     Pleasant Goat Train Set
       can stand up like a real robot and turn                   Grass map, train track, bridge,
       back into a fighter when it lies down.                    locomotive, lovely figures, trees and
       Both robot and fighter type can move                      more are ready for kids’ role-play
       forwards and backwards. It is also able                   game. Locomotive can make vivid
       to rotate by 360 degree.                                  siren and the head of Pleasant Goat
       BENTIAN WWW.XMBENTIAN.COM                                 and Big Big Wolf can be set on the
                                                                 head of loco.
                                                                 MAKE SAIL TOYS              W W W.

23                                                                                          TOY INDUSTRY APR, 2011
                                                                                                         WHAT ’ S
     Easter Egg Mylar Balloon
                                                                                                         NEW ?
Decorate your home for Easter with our
Easter Egg Mylar Balloon. The Mylar
Balloon has bright and colorful pastel               Game & Puzzle Japan Map
Easter eggs on a silver background.
                                                 With great playing value, this map is both
Each Easter egg balloon is made of
                                                 a board game and jigsaw puzzle. At the
Mylar and measures 18 inches in
                                                 same time, it can be a teacher for your
diameter. Use the Easter egg Mylar
                                                 geography knowledge. The upper layer
balloon to make a fun and cheer
                                                 is a Japan chorography and the middle
balloon bouquet with all pearl colored
                                                 layer is Japan’s administrative area. The
latex balloons.
                                                 lowest part is world tour board game.
                                                 HANAYAMA WWW.HANAYAMATOYS.                        Pente Game
                                                 CO.JP                                        The concept of Pente is
                                                                                              simple- win by placing
                                                                                              five stones in a row or
                                                                                              by capturing five pairs of
                                                                                              your opponents stones.
                                                                                              This fascinating game
                                                                                              grow richer as your skill
                                                                                              increases! Pente features
                                                                                              a quality roll-up game
                                                                                              board and four sets
                                                                                              of beautifully colored
                                                                                              stones that allow for
                                                                                              two, three, or four player
                                                                                              ga m e s . C o n ta i n s t h e
     Ji Ga Zo 300-Piece Sepia Puzzle                                                          following roll-up game
Ji Ga Zo is revolutionizing the puzzle category.                                              board, 4 Sets of glass
This awesome puzzle has 300 pieces that you                                                   Pente stones along with
arrange to create any face! Start out with                                                    instructions.
any digital image and upload it using the Ji                 Ratuki Card Game                 WINNING MOVES
Ga Zo software. The software figures out the                                                  W W W. W I N N I N G -
placement of each piece and builds a unique              It’s easy to play, fun to win
icon map. Then, it's up to you to arrange the            and totally addictive! Build
pieces according to the icon map and watch               piles of cards from 1 to 5,
your own special image come together! These              but watch out: it’s a card-
300 pieces are specially created with unique             slamming frenzy! Be the first
colors and shading that let them interlock to            to slam a 5 on the top of the
create almost any face image you upload. The             deck, shout “Ratuki!” and the
possibilities are virtually endless, and the face-       cards are yours. Get slamming
making fun goes on and on! Includes CD-ROM               and get winning! Includes 170
with software and instructions, 300 puzzle               cards, 5 reminder cards and
pieces, and assembly grid.                               instructions. For 2 to 5 players.
HASBRO WWW.HASBRO.COM                                    Ages 8 and up.
                                                         HASBRO WWW.HASBRO.

24                                                                                            TOY INDUSTRY APR, 2011
                                                                                                             WHAT ’ S
                                                                                                             I N AD ?
                                                Kurhn Princess Wen Cheng
     Real Construction                      The famous Princess Wen Cheng is telling
Deluxe Workshop and                         you her legendary story in Tang Dynasty
Starter Workshop offer you                  and displaying you the unique feral
different stage of engineering              apparel in those ancient days. It is new
experience. They are                        for Chinese Princess collectible series of
innovative DIY construction                 Kurhn. Best for collection and present.
kits with special “wooden”                  KURHN WWW.KURHN.COM
m ate r i a l s a n d s u p p o r t i n g
                                                                                                Transform War Gods
tools. Only for kids! Kids can
just let go their imagination to                                                            These R/C metal vehicles can
construct a wonderful model                                                                 transform during high speed
or building. Booster kits like                                                              running. Coming with light and
Large Refill, Logs Refill are                                                               sound effect, they can move in
available to add more fun to                                                                all direction when they are in the
play.                                                                                       shape of cars. Blue, yellow and
C AM INO     W W W.                                                                         warm red models are available
CAMINOTOYS.COM                                                                              now.
                                                                                            S U N F U N    W W W .

                                                                                         RMZ Collection Die-cast Car
     Black Hawk the 3-Channel Controlled Copter                                  Kids are no long satisfied with traditional
                                                                                 die-cast cars. UNI-Fortune’s innovative
Silverlit’s new recruit! With all direction flight control, Black
                                                                                 electronic technology adds light and sound
Hawk comes with gyro direction stabilizer and can be adjusted
                                                                                 effect to their die-cast cars, displaying real
precisely in speed. With special materials, the Boeing-licensed
                                                                                 action. Kids can gain perception through
model is impact-resisting. Suitable for indoor play.
                                                                                 play. Moreover, with factory design, this
                                                                                 scaled models feature high collectible
                                                                                 UNI FORTUNE                W W W. U N I -

25                                                                                                   TOY INDUSTRY APR, 2011
                                                                                                     WHAT ’ S
                                                                                                     I N AD ?
                                                       Stunt Cars
      Multifunctional Baby Strollers               This stunt car lines
                                                   show you the most
Flame of aluminum square tube comes                striking stunt! Fast
with safety design to avoid clamping               driving on suspension
fingers. Removable dinner board gives you          cable, flying over
more convenience to put your baby out or           hurdle, crashing
inside the strollers. The whole stroller with      road-block, high-             Color Push Cart & Blocks
sunshade can be fold up and carried on back.       speed drift, one-line
It can be adjusted to different angle so baby                                Baby just pushes this lovely cart
                                                   running… all these        outside the house with parents.
can sit or lie down. Suitable for newborn as       can be realized with
well.                                                                        Bring blocks out of the cart and enjoy
                                                   this stunt line. Kids     constructing whatever interesting
ANGEL WWW. ANGELSH.COM.CN                          can also create their     building. Nano antibacterial materials
                                                   own stunt!                safeguards baby in outdoor fun.
                                                   KENFUN                    CHILDLIKE TOYS              W W W.

         Gigo Construction Kits
     Daseng is introducing the brain-
     training green toys. Wind Power,               Transformers Dark of the Moon Collectible Series
     Junior Engineer, Pets Family, Solar        New sequel of the Transformers movie will see another war between
     Power, Electric Vehicle and more are to    Autobots and Decepticon. More new robots will enter the war,
     be discovered by young scientist and       including Shockwave. Licensed toys and accessories are available now.
     environmental protectors.
                                                SHUNJIA WWW.SHUNJIA.CC

26                                                                                          TOY INDUSTRY APR, 2011
       PDF E-monthly available now! Only 20 for 1 year
(12 issues), with Chinese and English version

     TOY INDUSTRY is a professional toy monthly issued home and abroad, supported by
Guangdong Toy Association(China), which is endowed with location and industrial edge.
     The monthly provides extensive coverage on latest and hottest news on products,
makers' information, industrial dynamics and management concept in domestic and
overseas markets. With forward-looking point and practicability, it serves as useful
reference for you in production and daily business. It is now the professional toy magazine
of greatest influence in mainland China.
     From the angle of overseas readers, its English translation selection emphasizes latest
information on products and factories in China, providing aids for you to discover business
opportunity and expand market in China.
     Subscription rate for 12 months is only 20. You will get the PDF document through
email, including E-monthly in Chinese ( more than 100 pages) and translated selection in
English (more than 30 pages).
     E-monthly saves your time and postage cost and helps you to gain prompt and valuable
news on toy industry.
    Click here to read the samples:
      If you are interested in making subscription, please fill the Subscription Form at the
last page and fax it to us. You can also download the form and email to us ( ).
    More details can be see on our site .

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    Fax: 8620-83587016
    CTC: Ms. Rita Fong

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