Toy traders are stocking up for Christmas

Children in the recession-plagued United States may yet find their stocking stuffed this Christmas with toys from China, which is good news for them and for manufacturers in Guangdong.

Mainland internet commerce giant Alibaba.com reported yesterday a significant increase in global trade activity in toys, led by buyers in the US.

That would be welcome relief for the mainland, the world's biggest source of toys, and Guangdong, where most of the toy manufacturing enterprises are located.

Hammered by the global financial crisis, the number of toy factories on the mainland has dropped to 3,200 over the past year from 8,000.

Alibaba, the Hangzhou-based firm that runs the world's largest business-to-business e-commerce service, with more than 42 million users, estimated it recorded more than 110,000 global toy searches in its international marketplace during the first half of the year, up 81 per cent year on year.

"We've also seen an acceleration in toy searches since June, because retailers are stocking up for the holiday season," an Alibaba spokesman said. "The economic crisis has led to a fundamental shift in sourcing habits, with buyers travelling less and using the internet more to find new products."

Alibaba had 21,722 toy suppliers and 745,050 toy products listed on its international marketplace on Monday. The largest number, or about 24 per cent, of these suppliers are based on the mainland, and 11 per cent in Hong Kong.

Based on product page views from January to August, remote-controlled toys, such as cars, airplanes and helicopters, accounted for 15 per cent of global toy trade activity on Alibaba.

"Stocks are down, so retailers are replenishing and trying out new suppliers that can give them more value for money," said Sandeep Singh, a co-founder of Shantou-based toymaker Forever Grace International, which produces remote-controlled toys and model airplanes for major airlines.

The toys next most in demand on Alibaba are educational products, which include do-it-yourself kits, construction sets, puzzle cubes and drawing boards.

Other highly coveted children's toys being searched online include dolls, stuffed toys, action figures, toy guns, electronic pets and so-called candy toys, like gumball machines and novel-shaped candy containers.

Leadsky International Enterprise, a contract manufacturer of candy toys based in Huizhou, Guangdong, said its business had grown this year, thanks to increased demand for what it described as niche creative toy products.

"So far this month, we have seen a 20 to 30 per cent increase in sales compared with October last year," marketing executive Vincent Yim said. "We do [original equipment manufacturing] projects for big brands such as Barbie and M&M. We recently launched a great new product for Halloween - candy in a skeleton-shaped container - which is being sold at Wal-Mart in the US."