Radio-controlled Toys

More than 50% of the world's radio-controlled toys are China made. Now you can learn how to best tap this huge supply-market, with an in-depth overview of the industry.

This detailed report reveals which producers are expanding, where R&D trends are headed and which makers are moving into new product lines, including flying toys.

It also highlights specific developments in the car, truck, boat, submarine, hovercraft, animal, robot and hobby sectors.

Plus you'll get profiles of 80 major manufacturers that you can use to save time and money, by shortlisting suppliers to visit on your next trip to China well in advance.

What you'll get

Deep profiles of 25 major manufacturers, highlighting their design and production capabilities, export capacities and future plans. These profiles are based on personal factory visits and exhaustive interviews with senior managers

Short profiles of an additional 55 suppliers with key summaries such as production capacities, machinery used, export ratios and export marketing infrastructure

A Product Gallery featuring 152 best-selling radio-controlled toys from China, with detailed product specifications and full-color photographs

The results of Global Sources' latest supplier survey, providing insights into forecast pricing, production, sales and R&D trends

This report covers: animal and robot toys, toy boats and submarines, toy cars and trucks, flying toys, hobby models and stunt toys

How you'll benefit

Discover if the recent increase in raw-material costs will affect FOB prices over the next 12 months

Find out the advantages of sourcing from different cities in Guangdong province — home to the majority of China's radio-controlled toy and model manufacturers

Get verified supplier contact information including website addresses

Understand how the radio-controlled toy industries in Hong Kong and Taiwan differ from that of mainland China

Executive summary

China supplies an estimated 50 percent of the world's radio-controlled toys. In 2003, its total production grew 23 percent to US$1.31 billion. The growth is expected to continue in 2004, with production estimated to increase by 18 percent to US$1.54 billion, and exports by 15 percent to US$1.28 billion.

There are about 1,000 RC toy manufacturers in China, based almost entirely in Guangdong province. Production is still largely of toy cars and trucks, which constitute 70 percent of China's total output. However, flying toys are emerging as the second-strongest segment, accounting for approximately 20 percent of current overall production volume.

When Global Sources released its first Market Intelligence Report on RC toys in 2003, only Taiwan-invested companies were able to manufacture flying toys. This year, however, the scenario has completely changed. Of the total 1,000 RC toy makers in China, approximately 200 can currently manufacture flying toys, and about 20 among them specialize only in flying toys. More manufacturers continue to join the line.

This trend is reiterated in the Global Sources Supplier Survey featured in this report. Almost 45 percent of the respondents to the survey consider flying toys as one of highest growth potential product lines in the next 12 months.

Most products from mainland China, however, are entry-level to midrange items. Hong Kong and Taiwan, whose respective RC toy industries are also profiled in this report, dominate the midrange to high-end sectors. Hong Kong suppliers are known for their licensed replicas and the ability to develop their own brands. Taiwan makers, on the other hand, backed by their mature technology in developing integrated solutions and key components, specialize in high-end toys and hobby models.

The full range of products available in mainland China includes land vehicles such as cars, trucks, miniature models, stunt vehicles, motorcycles and racecars; flying toys such as airplanes, helicopters, and flying saucers; animals and robots; boats and submarines, including hovercrafts; and hobby models.

Suppliers mostly produce for such OEM clients as Wal-Mart, Simba Toys, Hobbico, Simba-Dickie Group, Target, Mattel and Carrefour. Some are also licensed replica manufacturers for such automotive companies as BMW, DaimlerChrysler and Porsche.

R&D focuses on cosmetic design for low-end to midrange products, and capability enhancement in high-end items. Miniaturization remains an R&D focus, although more for flying toys than RC cars, for which the market has become saturated. Altitude and digital proportional systems are increasingly incorporated in most midrange and high-end products.

Industry overview

Radio-controlled toys offered by China makers include flying toys, cars and trucks (including miniature and stunt cars), animals and robots, boats and submarines and hobby models. Production and exports of flying toys have increased exponentially in the past year.

In 2Q 2003, only Taiwan-invested companies were able to manufacture flying toys. This year, however, of the 1,000 RC toy makers in China, approximately 200 manufacture flying toys, and about 20 among them specialize only in flying toys. More manufacturers continue to join the line.

Hobby models is another product segment witnessing substantial growth. While hobby model factories in China are predominantly Hong Kong- or Taiwan-invested, a few China-invested companies have also ventured into the line. Production is dominated by entry-level ready-to-fly (RTF) and almost-ready-to-fly (ARF) airplanes and helicopters.

Cars and trucks continue to comprise the majority of output and exports of RC toys accounting for 70 percent of total volume output. The majority of suppliers think this product category will drive their growth in the next 12 months.

Boats and submarines, and animals and robots are two other categories that are expected to take off.

Growing faster than the entire toy industry
Production of RC toys in mainland China is growing at an average annual rate of 20 percent, which is double the average increase being witnessed by the overall toy industry.

The total value of toy production in China increased about 12 percent in 2003 to US$13 billion, and is expected to increase 8 percent to US$14.1 billion in 2004. In 2005, the industry will see an estimated 11 percent increase to US$15 billion. On the other hand, production of RC toys grew 23 percent to US$1.3 billion in 2003, is estimated to increase 18 percent to US$1.54 billion by the end of 2004, and 21 percent to US$1.86 billion in 2005.

In exports too, the RC toy industry is experiencing higher growth rates than the overall toy industry. Exports of all toys from China increased about 12 percent to US$11 billion in 2003, and are estimated to grow 11 percent in 2004 to US$12.4 billion, and 9 percent in 2005 to US$13.6 billion. By comparison, RC toy exports grew 18 percent to US$1.1 billion in 2003, and will grow an estimated 15 percent to US$1.2 billion in 2004, and 18 percent to about US$1.5 billion in 2005.

Mainland China currently accounts for about 50 percent of the global production of all RC toys, and 75 percent of all low-end and midrange RC toys.

Samples of supplier profile

Adept Plastic & Electronic Mfy
Established in 1998, Adept Plastic & Electronic produces RC toys for OEM customers only. It exports 100 percent of output to North America and Europe.

A midsize company, Adept has an average monthly output of 100,000 units and a workforce of 900. It also produces its own PCBs.

RC toys account for 50 percent of Adept's production. The other 50 percent is for MP3 players, and portable and in-car CD players.

Cars and trucks comprise 60 percent of the company's output of RC toys, while animals, robots and miniature toys account for 40 percent.

Adept can produce small, licensed replicas of Formula One racing cars. It is also developing flying toys scheduled for release in September 2004.

Adept develops its own designs in-house or in partnership with customers.

Products and prices
Full-function RC cars and trucks that move forward, reverse, and turn left and right account for 60 percent of the company's total output. Radio frequency is usually 48MHz and maximum controlling distance is 30 meters. The cars and trucks come with a 9V battery for the controller and four AA batteries for the main body.

Adept's in-house R&D team consists of 12 design engineers and seven technical assistants that use Pro/E and AutoCAD systems.

Each year, the company invests US$400,000 in R&D and launches up to six new products, including those codeveloped with buyers. New products are developed in three to six months. The team also designs packaging.

For H2 2004, R&D will focus on flying toys. Three RC helicopters are set for release in September 2004, and will be priced between US$20 and US$30 FOB Shenzhen.

The company's low-end models are priced between US$10 and US$20, while midrange and high-end models are from US$21 to US$30. As overall manufacturing costs increased by 15 percent in H1 2004, the factory is planning to raise FOB prices by about 10 percent in H2 2004. Main factors that affect export prices are increasing raw material costs and the implementation of SA8000 (Social Accountability) standards, which is required by some buyers.

Sample of product gallery

Cars and other vehicles Adept Plastic Model: 2280 Minimum order: 2,000 units Delivery time: 21 days Packaging type: GPPS box, export carton Indicated FOB price: • Description: Miniature car measures 18x10cm; runs forward, reverse and turns left and right; frequency is 49MHz; maximum controlling distance is 20m

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All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.

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