Children love them, so does China's big business. In the of space 20 years, the globe's new economic powerhouse has become the toy factory to the world.
While once Hong Kong was a major toy manufacturing centre, production has long since shifted to the nearby mainland province of Guangdong, attracted by low wages and government sweeteners.
Indeed, Guangdong has about two-thirds of toy production in China, which has about a 70 per cent global market share, despite many scare stories over safety.
From teddy bears to toy cars, from board games to dolls' houses, China makes them all.
The factories of the Pearl River delta are working overtime. This is the peak season for production ahead of the Christmas rush for an industry that was worth US$83.3 billion (Dh305.9bn) globally last year, up 4.7 per cent on 2009.
The export value to China of toys last year was $10.1bn, a 29.4 per cent increase, according to the Global and China Toy Industry Report 2010-11 published by Research and Markets. Demand picked up last year after the global slump hit revenues in 2010.
Yet with wages spiralling, many question whether China can retain its pre-eminence.
In May, the Boston Consulting Group (BCG) released a study that said considerable amounts of manufacturing would return to the US because increases in labour costs in China would "erase most savings from [moving] offshore".
The appreciation of the yuan and wage growth estimated at 17 per cent annually by BCG, a result of labour shortages, mean manufacturing in China is only 10 to 15 per cent cheaper than in the US after other factors such as worker productivity are taken into account. That is before transport costs are added.
Manufacturers in China have also been voicing concerns about European directives that increase the list of harmful substances banned from toys imported into the EU.
A mass exodus from Guangdong and other centres, such as Yiwu near Shanghai, which has more than 3,200 toy-related companies, is unlikely for now, however.
Hong Kong is home to many toy companies, even if actual production has shifted across the border, and for them there are several advantages in using manufacturers in Guangdong, according to Tak Chen, a sourcing and sales manager with Benjamin Toys, a brand sold mostly in the UK, but also in other markets including the UAE.
Mr Chen says rising wages could pose a challenge in the long term, but for now the company is not considering changing its supplier base.
"[Guangdong is] easy for contact, it's easy to source, easy to find manufacturers, easy to be in touch with them," he says.
"It's easier for us to be there, to go there and see a production line, to see finishing, to see samples and do the deals."
While some countries in South East Asia, notably Vietnam and Cambodia, are securing some low value-added manufacturing that once would have gone to China, language problems meant Hong Kong-based toy companies were unlikely to send production abroad.
"We do have deals with them [Chinese manufacturers] regularly … About quality, we do not really [have to] worry about it," says Mr Chen.
As well as facing competition from neighbouring countries, and even developed nations if the BCG's predictions prove accurate, Guangdong and the other toy manufacturing heartlands have to cope with threats from other parts of China.
Relocating to the interior provinces has become an increasingly attractive option because of lower wages. But just as toy brands are keen continue to source from Guangdong, the manufacturers themselves have reasons to stay put because of the benefits of being part of a cluster with its well-developed supply chain.
The concentration in Guangdong of workers with the requisite skills makes setting up in a new area a less attractive option, according to George Huang, a professor at the University of Hong Kong's industrial and engineering department.
"If a company moves to Cambodia or the interior [of China], it takes some time to build up the labour supply with the appropriate skills. This is one of the major factors for companies to stay in Guangdong," he says.
Inland China is also further from the seaports from which most of China's toy output is sent.
Although China has moved up the rankings to become the world's third-largest market for toys behind the US and Japan and ahead of the UK and France, the vast majority of goods are still shipped abroad.
Of immediate concern to toy brands and manufacturers is the economic climate in the US and Europe and whether this will lead to a slump in demand, not long after sales recovered after a decline in 2009. Brands are trying to stay optimistic despite the challenges.
"Hopefully it will be steady growth or just about the same as last year," says Mr Chen.
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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3/5 stars
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
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THE SPECS
Engine: 2.0-litre 4-cylinder turbo
Power: 275hp at 6,600rpm
Torque: 353Nm from 1,450-4,700rpm
Transmission: 8-speed dual-clutch auto
Top speed: 250kph
Fuel consumption: 6.8L/100km
On sale: Now
Price: Dh146,999
SERIES INFO
Cricket World Cup League Two
Nepal, Oman, United States tri-series
Tribhuvan University, Kathmandu
Fixtures
Wednesday February 5, Oman v Nepal
Thursday, February 6, Oman v United States
Saturday, February 8, United States v Nepal
Sunday, February 9, Oman v Nepal
Tuesday, February 11, Oman v United States
Wednesday, February 12, United States v Nepal
Table
The top three sides advance to the 2022 World Cup Qualifier.
The bottom four sides are relegated to the 2022 World Cup playoff
1 United States 8 6 2 0 0 12 0.412
2 Scotland 8 4 3 0 1 9 0.139
3 Namibia 7 4 3 0 0 8 0.008
4 Oman 6 4 2 0 0 8 -0.139
5 UAE 7 3 3 0 1 7 -0.004
6 Nepal 0 0 0 0 0 0 0
7 PNG 8 0 8 0 0 0 -0.458
MATCH INFO
Qalandars 109-3 (10ovs)
Salt 30, Malan 24, Trego 23, Jayasuriya 2-14
Bangla Tigers (9.4ovs)
Fletcher 52, Rossouw 31
Bangla Tigers win by six wickets
AUSTRALIA SQUAD
Steve Smith (capt), David Warner, Cameron Bancroft, Jackson Bird, Pat Cummins, Peter Handscomb, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Shaun Marsh, Tim Paine, Chadd Sayers, Mitchell Starc.
