In the past, Chinese toys were mainly exported. After years of development, my country has formed multiple mature toy industry belts, including Qingdao Plush Toy Industry Belt, Yangzhou Plush Toy Industry Belt, Yiwu Toy Industry Belt, Chenghai Building Blocks Industry Belt and Dongguan Toy Industry Belt. These industries produce approximately two-thirds of the world's toys.
However, due to the lack of experience in creating explosive products, online operations, marketing and promotion, etc., problems such as "no big-name domestic toys", "insufficient brand awareness", and "no explosive products in trendy toys" have become increasingly prominent. How to layout new online retail It has become a difficult problem facing brand merchants.
On the other hand, well-known overseas toy brands have a business layout that extends beyond toys. They form "cross-sales" with toys and other businesses to jointly enhance their brand image and enhance user stickiness. Ding Juan told reporters, "In the past, when consumers mentioned building blocks, they thought of Lego, but in addition to toys, Lego's business also includes movies, cultural tourism, education and other business layouts." Bandai Namco also spans the game , toys, audio-visual, Internet and gaming facilities.
However, new development drivers for the toy industry have emerged, which have also become an important driver of the upgrading and transformation of the industrial belt. The first is online. Euromonitor data shows that in 2018, online channels accounted for 25% of the toy industry, and this number has risen to 44% in 2022.
Second is IP. Relevant user surveys show that 38.9% of adult users consider their “favorite IP” when making purchase decisions. Judging from the situation of toy head company Bubble Mart, in the first half of 2023, Its independent and exclusive IP revenue increased by 17% year-on-year, and the authorized IP part increased by 40%;
The third aspect is scene-based, taking children's toys as an example. During the epidemic, toys with cooking scenes were very popular among parents and once caused a wave of popularity on social platforms; and since this year, children's toys with sleeping scenes have become a favorite among parents.
What China's toy industry needs most now is to increase market concentration.
In 2022, China's toy (excluding games) export volume will be 48.36 billion U.S. dollars (1 U.S. dollar is equivalent to 6.8 yuan), an increase of 5.6% over the previous year. The total retail sales of toys in the domestic market in 2022 will be 88.31 billion yuan, an increase of 3.3% over the previous year. The development of the industry is generally stable and improving. Shantou's toy production accounts for about half of the country's total, and it also plays an important role in the global market. Last year, Shantou's toy creative industry bucked the trend, with exports exceeding 14 billion yuan and a growth rate of 33%.
Zhang Ying, vice president of the China Toy and Baby Products Association, said that currently, my country's toy industry is facing uncertain factors such as slowing global demand and rising protectionism. To achieve long-term sustainable development, it is necessary to accelerate the high-end, smart and smart manufacturing of toys. ization and greening, and promote domestic and international dual circulation. As for creating "Chinese Lego", Sun Jiashan thinks it is not impossible. He said that the quality of Chinese toys can now fully reach the level of Lego. Trendy toys and blind boxes have done a good job overseas. Some basic work has been solved. The key is to return to building your own IP and cooperate with the industry. The chain runs through. Now we are still in a state where each industrial chain is fighting on its own. What China's toy industry needs most now is to increase market concentration, because IPs are tied together. As long as there are fist IPs, industry concentration will naturally be high.
Last year, my country's toy exports still hit a record high, reaching 322.92 billion yuan! In the domestic market, Bingdundun, Kodak Duck and various trendy toys also caused young people to rush to buy them, boosting consumption significantly. This year, as my country's economic development focuses on "promoting consumption, expanding domestic demand, and stabilizing foreign trade," will the toy industry continue to work hard to improve its performance?
The market situation faced by China's toy industry in 2023 is relatively complex and severe. Although my country's toy exports reached a record high last year, with a year-on-year increase of 9.1%, this was partly due to rising product prices. Whether the industry can grow steadily this year depends on the development of market conditions, and there are many uncertainties in the future.
According to the analysis of China's Toy Industry Market Analysis and Development Prospects Forecast Report 2024-2029 by China Research Institute of Industry and Commerce:
It is reported that Chinese toys account for about 70% of the world market, and Guangdong is my country's largest toy production and export base. Thanks to the rapid expansion of consumption of toys such as models, figures, trendy products, and game consoles to adults in recent years, global toy consumption reached US$100.4 billion last year, and the domestic market size also exceeded RMB 100 billion.
After the outbreak of the COVID-19 epidemic, anti-epidemic and isolation measures once triggered a global toy consumption boom, with puzzles and building blocks and other toys suitable for home parent-child entertainment selling well in the market. However, by the fourth quarter of last year, the consumption boom clearly subsided. In the two major toy consumer markets in Europe and the United States, after Christmas, There are still many leftover toys on shopping mall shelves, and sales are much lower than the year before. Toy multinational companies Hasbro, Disney, Mattel, etc. are all facing huge inventory pressure and poor performance. They have announced layoffs this year, and the market outlook is not optimistic.
However, as my country's epidemic prevention and control measures are optimized, all industries are prospering, the economy is recovering rapidly, and domestic sales potential is being released. During this year's Spring Festival, various indicators of domestic consumption were satisfactory, and the growth momentum of the domestic sales market was strong, which doubled the confidence of the toy industry. This year, the Shenzhen Toy Fair attracted more than 1,400 domestic and foreign companies to display their products. The number of pre-registered buyers also continued to rise. The toy industry has a strong desire to expand the market, grab orders, and promote consumption.
Foreign toy brands are obviously working hard to develop the Chinese market. Well-known animation IP derivative series such as "Disney", "Ultraman" and "Pokémon" are all available at this exhibition. Many domestic brand companies have taken a different approach and promoted national fashion, military-themed series and other products. The well-known building block brands "Senbao", "Qimeng" and "Xiao Luban" are very prominent in this regard. There are also companies that are optimistic about the toy consumption power of young people, and have launched plush toys that are companion animals such as imitation cats and dogs to meet their needs. Chat robots and toys, which have recently sparked heated discussions in society, also have prototype products.
Data show that in 2022, my country's exports of toys (excluding games) will be US$48.36 billion, an increase of 5.6% over the previous year, and exports to RCEP member states will be US$11.81 billion, an increase of 36.1% over the previous year. In 2022, the export value of children's strollers will be US$1.67 billion, an increase of 12.5% over the previous year. The first export destination is the United States, with an export value increasing by 12.0% over the previous year. The export value to RCEP member states will be US$270 million, an increase of 12.5% over the previous year. The annual growth rate is 37.2%. In 2022, the total retail sales of toys in the domestic market will be 88.31 billion yuan, an increase of 3.3% over the previous year. The total retail sales of baby bottles will be 6.65 billion yuan, an increase of 1.1% over the previous year. The total retail sales of children's strollers will reach 14.78 billion yuan, an increase of 1.9% over the previous year. .