Hong Kong exporters girding for recession, toy fair told

Hong Kong FlagNuremberg, Germany - As Hong Kong girds for the recession, its toy makers are hoping sales to emerging markets will go some way to replacing losses in the United States, a trade official said Wednesday ahead of the Nuremberg Toy Fair opening.

"We are not counting on eastern Europe to replace lost sales to the United States, but at least there are some other areas where we can put in some more effort," said Winchell Cheung, who heads the Frankfurt office of the Hong Kong Trade Development Council.

With US sales forecast to decline, markets such as Poland have assumed greater importance for exporters.

Hong Kong, plus the factory zone in China's Pearl River Delta together form the heartland of the world toy industry and many of the manufacturers are exhibiting new products at the February 5-10 fair in Germany.

"We expect a very challenging time ahead," said Cheung. "The answer is to come up with innovative products at a reasonable price."

Examples he cited included Kool Keyz, a pair of wired-up gloves which allow children to tap out piano melodies on an ordinary table-top and also to produce electronic violin, trumpet and guitar music.

"Multimedia toys are trumps," Cheung said.

Chancellor Angela Merkel was to officiate Wednesday evening at a launching party for the Toy Fair, the 60th in Nuremberg, before buyers arrive Thursday morning. (dpa)

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