Cheeky robot toy wows global markets (hktdc.com)


	Designed in Hong Kong, the wise-cracking RS Tri-bot robot can move independently and has seven play modes

	Eric Lau, Chief Operating Officer of WowWee Group Limited

In 1982, Canadian brothers Peter and Richard Yanofsky saw Hong Kong as a land of opportunity. They set up a trading company under the name WowWee, and went on to make "their first bucket of money."

As times and market conditions changed, the brothers moved away from trading to focus more on inventing. Using Peter's design expertise, they began designing toys that were sold to many different brand names, but after a while that changed, too. In 1997, economies had tightened and manufacturers were less willing to pay for someone else's designs.

The Yanofskys found a Hong Kong partner, Eric Lau, and together, they jointly agreed to create their own brand. WowWee now sells millions of innovative toys worldwide, including its award-winning range of next-generation entertainment robots. These include the latest RS Tri-bot that tells jokes, plays games and performs stunts.

The Tri-bot is described as an interactive, talking humanoid robot whose "running commentary and dynamic personality make him a comical sidekick." The Tri-bot robot can roam around independently, without crashing into walls or obstacles. It can pass commentary, wake you up in the morning, and warn of an intruder. With bright LED eyes, animated eyebrows and a pop-top head, the Tri-bot is "an expressive companion – a welcome addition to any home or family." And with 500,000 sold in just a few months since launch, it seems set to be a big hit this Christmas.

Factories close by

Mr Lau, WowWee's Chief Operating Officer, said Hong Kong has been pivotal to the company's success. Its core Research and Development team is here, and all of the factories WowWee works with in the Chinese mainland are within a two-hour commute. This is essential in the invention business, as it allows for fast turnaround. "The two most important elements are cost and time," Mr Lau said. "We may not be able to do anything about world oil prices, but by being in Hong Kong, we can certainly improve on time."

By utilising the city's tax-free status, savings are also made on the goods shipped from Hong Kong. The company has further benefited from having a Hong Kong partner, who not only has local connections, but also understands the language, culture and business practices in the mainland.

WowWee Group Limited now has 80 employees, more than half of whom are on the R&D team based in Hong Kong. Peter Yanofsky works from the group's California marketing office, where he can liaise with companies like the Walt Disney Company, with whom WowWee has licensing arrangements, including a TinkerBell-branded range. WowWee is also in negotiations for various movie deals.

Organic growth

It has been an evolutionary process, according to Mr Lau. The first toy WowWee produced was a remote-controlled skateboard – something different from the usual remote-controlled cars, planes or boats. It sold more than one million pieces worldwide.

Next came Megabyte Dog, which had some features of a very expensive robot dog put out by a major global brand name, but wasn't actually a robot. This allowed the price to be kept at less than US$30 and it, too, sold more than a million pieces.

The third invention, Animantronic, marked WowWee's entry into the robotic toy market. The range comprised 30 interactive animals, and more than five million were sold worldwide.

After further development, Robosapien, the company's first true robot, was launched in 2003. Mr Lau said the market was sceptical. "Buyers said it was too expensive – no one would buy it. So we did a run of 50,000, but it was soon sold out, creating a big demand. People began chasing us, and we ended up shifting six million pieces worldwide."

More in store

The Tri-bot robot will keep to the under US$100 price point, and even though he sounds like a fun thing to have around at a party, it's not the end of the story. Next year, WowWee will move into the home appliance market, with a robot so advanced, it can check your emails and provide home security. Known as the RSG, it will launch in January 2009 and sell for around US$1,000.

Mr Lau said that when WowWee started Original Design Manufacturing in Hong Kong in 1997, its mission was to make products that were unique and cutting edge. Eleven years on, the company has gone from being an unknown brand to a world leader. It has proven that when everything comes together – ideas, design, production and distribution – the result can be a global success story.