Hong Kong, the largest city in China is a great place for you to own a toy factory. Many Chinese manufacturers have moved over to this part of the world and started producing their products there. The toy factories are extremely profitable and many of them can earn million annually. In order to succeed in a business like this, you need to make sure that you have a plan.
One of the most important aspects of a business in Hong Kong is planning. You must come up with a strategy so that you can protect yourself against any possible threats from the Chinese manufacturers. One of the greatest threats to the success of the Hong Kong manufacturer is the Chinese trade war. We know that China is an economic competitor of the US and other western countries. So if the Chinese government and trade war come to a conclusion, it will be extremely difficult for the American companies to produce products in China.
So how do you prevent this? First of all you should find a local manufacturer who can understand your needs and can make a physical factory in your location. This will give you two advantages. One, you will be able to get a larger market share in China and two, you will be able to protect yourself from the trade war between the Chinese and American companies.
You can start by looking for a local entrepreneur who has some experience in the Chinese market. There are many Chinese businessmen who have opened up their own companies in the past twenty years. You should contact a local company owner and ask him questions about his experience. Usually they are more than willing to help you because they see the potential in you as a foreign player in China. If possible, you should hire a local Chinese expert to help you design and build your Hong Kong factory.
Another strategy that you should consider is partnering up with another international company who wants to invest in your factory. Partnering up with these big companies will give you a lot of help because you can use their resources to improve your production line and other important equipment. On the other hand you should also consider the possibility of investing in less popular toys. A smaller less popular toy company will have less capital to invest in but you will be able to earn a bigger profit from it.
The third strategy you should consider is the development of joint venture partnerships. China has opened up so many economic opportunities and partnership deals can help you expand in every aspect of the toy market. For instance, if you want to produce mobile games in China, you can form a partnership with the makers of Angry Birds. Now both of you can focus on the different aspects of the toy market. These are just some of the ideas that can help you expand in the Chinese toy market.