Sensing most other Chinese could be like him, attracted to these alien intelligent toys, he quit his job and launched his own company exploiting the new market in China.

Deng's opinion coincides with analysts'views on China's toy market,which they said is huge in potential. The toys counted in a revenue of 10billion yuan (US$1.2billion) for China last year.

However, the market is far from fully tapped, they added, saying some 8-illion-yuan valued market is empty and needs to be filled.

According to a survey made by the China Toy Association, China's yearly expense on adult toys averages 16 yuan. But nearly all respondents said in the survey they like toys and will buy some if they find some in their favor.

Due to the high profit margins in the industry, the toy market is also profitable, analysts said. According to them, gross profits range from 120 to 130 percent for toy makers while net profits are usually as high as 40 to 50 percent.

To take Deng's company, Beijing Taote Trade Ltd, for example, only 30percent of its production is sold on the domestic market. But, even that 30-percent domestic business brought it 10 million yuan last year." Adults don't care too much about the prices of their fond toys," said Deng." They are able to afford that prices."

(Shanghai Daily March 21, 2002)