Company: KMRK
Filing Date: 2025-04-07
Form Type: DRS/A
Source: 0001213900-25-029283
Chunk: 108

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-04-07
Form: DRS/A
Chunk 108
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 wide range of categories, each appealing to different age groups, interests, and consumer preferences. Below is an overview of the main segments within the toys product market, along with the trends and characteristics of each. Source: Migo 68 Toys Industry Chain Analysis The value chain of the toys industry is mainly consist of upstream raw material suppliers and manufacturers, midstream brand owners, distributors, retailers and consumers. The following chart illustrates the value chain of the toys industry. Source: Migo The value chain of the toy industry encompasses a progression from raw material procurement to consumer engagement. The upstream segment involves securing raw materials used in production, such as rubber, plastic, and alloy steel. Manufacturers produce products tailored to the specifications of brands and subsequently deliver the finished toys to them. Some manufacturers also develop and market their own private brands. The midstream segment primarily consists of brands that focus on brand operations and marketing. In the downstream segment, brand owners distribute products primarily through distributors to retailers or sell directly to retailers and consumers. Consumers can purchase products through both online and offline channels, such as e -commerceplatforms, toy stores, and department stores. Toy manufacturers can be categorized into three groups based on their production methods: Original Brand Manufacturer (OBM), Original Equipment Manufacturer (OEM), and Original Design Manufacturer (ODM). OBMs create and manufacture their own branded items while also contracting production to external manufacturers. OEMs produce items according to the designs and specifications provided by brand owners or other manufacturers. ODMs, on the other hand, offer design and manufacturing services based on specifications provided by brand owners or other manufacturers. Owners of toy brands primarily focus on managing their brands and selling products, often choosing to collaborate with OEMs or ODMs for production outsourcing. ODMs and OEMs, due to their adaptable and robust manufacturing capabilities, also have the capability to create and market their own brands. Performance of Toys Exports in Hong Kong Following weak export performance in 2022 and 2023, Hong Kong’s toys and games exports remained sluggish during the first nine months of 2024, recording a 24% year-on-year decline. As many Hong Kong companies shift the roles of their local offices to support their global expansion, Hong Kong toys and games exporters are increasingly focusing on handling offshore trade. The continuous improvement in technological literacy and evolving play preferences have increased the importance of non-traditional toys, such as electronic toys and video games. Consumers are increasingly drawn to toys that integrate technology and offer interactive experiences. The following table sets out the