Ironically enough the (new) statue I got in today had damage similar to the OP's- a small, thin part of a costume.
So thin there was very little area to even put any glue on. I did what I could, and then boxed it back up for storage for the time being.
Something I realized afterwards is, because that area is so thin, no matter how strong the bond is, trying to putty repair it would probably be asking for trouble. Sanding it down would likely put too much pressure on that seam and I'd be back where I started.
In the case of the OP's hat, I'd probably just mask it with a fresh coat of paint. At that scale and size of problem, puttying it would be more of a job for a pro.
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