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.

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All information contained in China Sourcing Reports is the result of exclusive, ground-level and definitive research conducted by Global Sources' analysts. Companies featured in these reports may or may not be clients of Global Sources.

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In this Report • 25 suppliers with in-depth profiles • 55 suppliers with short profiles • 152 popular export models • Industry overview analyzing key issues, industry trends and manufacturing processes • Global Sources Supplier Survey with production, price and R&D projections for the next 12 months