Hong Kong is still the hub of research and development in the toy industry, but mainland China is where the world's toys are made. China commands around 75 percent of the global toy-export market, worth around $29bn.
However, even in China, rising manufacturing overheads, caused by increases in labour costs and fluctuating currencies, are putting pressure on manufacturers as retailers demand cheaper products featuring better technology.
Craig Leeson reports from Hong Kong.
Source: Al Jazeera