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Q: How would you say about the current status of the Thai toy industry?
A: Frankly speaking, the Thai toy industry is still comparatively small in the global marketplace. There are currently about 150 "big" manufacturers completely dedicated to toy production in Thailand, plus many others who make other types of toys in smaller capacities.
The latest statistics from the Department of Export Promotion (DEP) in Thailand show that the export volume of Thai toys in the first seven months of 2006 has achieved an 11% year-on-year increment. We target that the year-end export value to be topping US$200 million plus. Meanwhile, with the huge year-end festive season coming up, the 2006 yearly domestic toy sales value is estimated to grow to reach US$380million.
Q: What are the Thai toy exporters' major markets?
A: Our largest export market is the United States, the largest consumer market in the world. Japan is the runner-up, while we also put great emphasis on the United Kingdom and some other wealthy nations in Europe. Parents in these cultures place huge importance on toys as a part of raising their children. This is the conclusion that I came to after dealing with lots of buyers from these markets. For them, toys are must-have items for children.
The feedback from these buyers reveals that our key competitiveness — even though we cannot offer prices as low as those of our competitors, particularly those from Mainland China the services we offer have set us apart. Our buyers tell us that Thai products somehow give them that high level of peace of mind. They are happy because our product quality, safety and punctual delivery are always guaranteed.
Q: The international toy industry sees Asia as a manufacturing centre. What qualities owned by the Thai toy manufacturers render them a unique edge?
A: I think the motto of our Association accurately sums up the strengths of the Thai toy industry. The three words stipulate our key advantages: design, quality and commitment.
The first aspect is "design". Thai toymakers believe that toys are like fashion. The trends of toys are ever-changing. To accommodate the ever-transforming market taste, Thai manufacturers keep rolling out new designs at least once or twice a year to ensure their product freshness in the global market. They also know that they must add value to their goods. As a typical example, by designing new toys with enhanced educational value, some Thai manufacturers market their toys as learning aids that facilitate balanced growth in our next generation. These educational toys have successfully captured the needs of many buyers in our target markets.
The second is "quality". The focus is not only on general product quality, but also the overall performance. Our toymakers strive to provide the total product quality by fervently having their products produced in strict compliance with internationally recognised safety standards and many good practices instilled by the home-grown production regulations established over a decade ago. Moreover, total quality covers the service dimension. Thai toymakers today fully understand that after-sale services are of equal importance. They are dedicated to meeting the ever-raising expectations and higher demands of today's buyers.
The last but not the least is "commitment", which is the greatest asset embedded in our national culture. We are committed to keeping our promise and service pledge at all costs. We believe this sense of commitment and integrity has won for us the long-lasting relationships with our customers.
To recognise outstanding performance in these areas and to further promote product quality and creativity, the Thai Toy Industry Association organises the annual Good Toy Awards. In 2006, the panel of judges will award the bests in 10 categories, including infant toys, preschool toys, role play toys, creative toys, ride-on toys, sport toys, outdoor toys, educational toys, games and hobby toys. The parents will have their say in the Parents' Choice Award, while the Popular Vote Award chosen by the children after playing with the nominated toys is a good indication of what type of toys are really having an impact on the kids. I recall that the simplistic hula hoop won this award over some hi-tech toys in 2005. The Good Toy Awards can feed ideas back to the industry on what's hot and the upcoming stars in the market.
Q: What market opportunities can Thai toy suppliers embrace as they stride ahead?
A: For the Thai toy industry to grow, I think it is very important that we continue to dedicate ourselves to the three unique advantages — "design", "quality" and "commitment". By doing so, we will differentiate ourselves from our competitors.
Next, the manufacturers should keep pace with the rapid development of information and production technology and examine how it can be combined with toys to create new products for tomorrow. This is an area the Thai toymakers can swiftly capitalise on, with the stepped-up government support, to generate more business opportunities.
Talking about market expansion, some Thai toymakers are now actively exploring the South American market. In fact, the Thai Toy Industry Association is organising trade missions to visit some Latin American countries with promising market potentials, namely Mexico, Chile and Brazil. We have lined up with enterprises and importers to meet the big buyers there.
One thing I would like to mention, the government in Mexico has begun imposing a 5-year 350% counter veiling duty on toys from Mainland China since early-2006. This punitive tariff raises the costs of importing China-made toys considerably, rendering the Thai toymakers a greater advantage to break into the Mexican market.
Q: How about the upcoming challenges?
A: The greatest challenge that Asian toy industry faces as a whole — not just the Thai manufacturers — is the ever-falling birth-rate. As the end users of toys are children, the dropping number of new-borns poses a real threat to the industry. While we cannot force people to have more children, the Thai toy manufacturers, for example, are now concentrating their efforts on educating parents and soon-to-be parents that toys play a vital role in children's balanced growth. This education program helps boost the parents' desire to buy toys for their kids.
The overwhelming popularity of addictive computer games is another threat. The Thai suppliers react by coming up with the best-possible and innovative products for the market. We have significantly stepped up our investment in product research and development. We churn out toys that truly cater for the kids' needs to enjoy group play and exercise, as well as to enable a good training of their logical mind. We work hard to stress on the importance of toys as a means to achieve an enriched and balanced childhood.
Then, the newly heightened focus on corporate social responsibility, like the ICTI-CARE process, presents a new challenge for Thai manufacturers too. However, I am confident that the Thai toymakers are ready to meet these new requirements.
Q: What final advice for the Thai toymakers to ensure their future market success?
A: By keeping up with our unique strengths in product design, quality assurance and unrelenting commitment to full service, the Thai toy industry will continue to prosper and garner a bigger slice of the global toy market.
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