Toy Fair’s Not-so-Frolicsome Start : Retailing: The showcasing of new products comes as the industry tries to shake off its worst slump in a decade.

Emerging from the worst Christmas season in a decade and with no new mega-hits in sight, the toy industry kicked off the 88th annual American International Toy Fair here Monday with a simple message: Toys “R” in a slump.

“Clearly, 1990 was disappointing for a number of toy manufacturers and retailers,” George R. Ditomassi, chairman of the Toy Manufacturers of America, said in announcing that industry shipments climbed a scant 0.3%, to $8.8 billion, in 1990.

Worse, makers fear shaky retailers will never pay for tens of millions of dollars worth of that merchandise. On Monday, for example, industry leader Hasbro Inc. took a $23-million charge for bad debts in part because of woes at Child World, the nation’s second-largest retail chain.

“There is little to celebrate this year,” said Larry Carlat, editor of Toy and Hobby World. “Frankly, I haven’t seen much that will pull people into the stores next Christmas either,” he added.

At least two big manufacturers are in serious trouble: Tonka Products, which agreed last month to be acquired by Hasbro for $518 million, and Lewis Galoob Toys, which is up for sale.

The downbeat mood didn’t stop more than 1,360 manufacturers from displaying their wares to more than 20,000 buyers from around the world.

Still, there were signs that the industry may have miscalculated. For example, at a time when war toys are flying off store shelves because of the war in the Gulf, there were few new war toys--but many related to the environment.

There’s the Pollution Patrol science kit, a Recycling Center truck, the EarthAlert Game and Recycling: The Game. “I’ve never seen preachy toys work,” said Richard Sallis, senior vice president of Playmates Toys Inc.

But that hasn’t stopped Playmates from testing the “green” market with Toxic Crusaders, “hideously deformed creatures of superhuman size and strength.” Of course, Playmates has already made plenty of green on another similarly hued product line, Teenage Mutant Ninja Turtles.

Black was also beautiful at the Toy Fair. Mattel unveiled a doll of rapper M. C. Hammer. More significantly, after more than 23 years of making black Barbies, it introduced an African-American fashion doll that is more than Barbie in blackface. The “Shani” doll comes in three skin tones and has facial features that more realistically reflect blacks. “We’re proud to have this role model for African-Americans,” said Mattel USA President Jill E. Barad.

Many firms have big plans for action toys, on the theory--or hope--that Nintendo video games have peaked. While toy sales were flat, Nintendo Ltd. sales jumped 24% to $3.1 billion last year.

“My guess is that the non-video segment of the toy industry will benefit by a softening in the video category of up to one-third of 1990 sales,” said Ditomassi. That could mean $1 billion in new sales.

Others believe Nintendo will hold its own this year by emphasizing its hand-held GameBoy and introducing a vastly more powerful home system.

On the war front, buyers said Hasbro’s G. I. Joe would have been a natural to benefit from Desert Storm--if only the company had outfitted him in desert camouflage instead of Dayglo. “We made these calls long before Saddam Hussein marched into Kuwait,” said Larry Bernstein, president of Hasbro’s toy division.

Besides, he added, “G. I. Joe is going to be here for a long time, and Desert Storm won’t.”