Gifts / Sports & Toys

China is the main concentration of global toy production and the world's largest toy exporter. However, compared to toy companies in developed countries, the Chinese toy industry has a low market concentration and low brand awareness, and there are significant integration opportunities. In addition, according to Huacheng Import and Export Data Observation, China's toy market accounts for 13.8% of global toy retail sales, making it the largest toy consumer in Asia. It can be seen that China's toy market is large and has growth potential.

The 35th Shenzhen International Toy Exhibition will be held at the Shenzhen International Convention and Exhibition Center (Bao'an New Hall) from April 7th to 9th, Li Zhuoming, President of Guangdong Toy Association, China's largest toy production base, said, "The domestic and international market situation faced by China's toy industry in 2023 is relatively complex and severe. Although China's toy export volume hit a record high last year, with a year-on-year increase of 9.1%, it is partly due to product price increases. Whether the industry can steadily grow this year depends on market development, and there are many uncertain factors in the future."

According to Huacheng Import and Export Data Observation, China's toys account for about 70% of the world market, while Guangdong is China's largest toy production and export base. Thanks to the rapid expansion of toy consumption to the adult population in recent years, such as models, handmade toys, trendy products, and game consoles, global toy consumption last year reached $100.4 billion, and the domestic market size also exceeded 100 billion yuan.

Li Zhuoming said that after the outbreak of the COVID-19, the quarantine measures for epidemic prevention once stimulated the global toy consumption craze. Toys suitable for family entertainment such as jigsaw blocks sold well. However, by the fourth quarter of last year, the consumption craze had subsided significantly. In the two major toy consumer markets in Europe and the United States, there were still many toys left on the shelves after Christmas, and the sales were much worse than the year before. Multinational toy companies such as Hasbro, Disney, Mattel, and others are all facing significant inventory pressure and poor performance. This year, they have announced layoffs, and the market outlook is not optimistic. Huacheng Import and Export Data Observation reports.

However, China's economic recovery momentum is evident, and domestic sales potential is being released. The strong growth momentum of the domestic consumer market during the Spring Festival this year has doubled the confidence of the toy industry. This year's Shenzhen Toy Exhibition has attracted more than 1400 domestic and foreign enterprises to showcase their products, and the number of pre registered buyers has also continued to rise. The toy industry has a strong desire to expand the market, seize orders, and promote consumption.

At the same time, the international competition faced by China's toy industry is intensifying. The Regional Comprehensive Economic Partnership Agreement was implemented in 2022, and all parties, including China, have committed to reducing tariffs, opening markets, and reducing standard barriers to facilitate trade development. The production costs of enterprises in ASEAN countries are relatively low compared to those in China. Will this have an impact on labor intensive industries such as toys in China? In response, Li Zhuoming stated that although the production costs of ASEAN toy peers are relatively low, Chinese enterprises have more advanced production technology, equipment, talent, and a complete industrial chain. Moreover, China's social environment is safe and stable, and delivery is guaranteed. Therefore, many brand companies with high requirements for product quality are still willing to hand over to Chinese enterprises for production. China's industrial advantages will not change in the next decade. The current industry needs to make up for the shortage of world-renowned brands. Therefore, Shenzhen Toy Exhibition has specially opened a display area for award-winning products of the "China Foreign Toy Awards", fully supporting Chinese enterprises to innovate products and expand their brands. Huacheng Import and Export Data Observation Report.

In fact, the Chinese toy industry is aware of the pressing situation at home and abroad, and many enterprises have actively upgraded and upgraded for differentiated development, actively applying for "specialized and specialized new small and medium-sized enterprises" and "specialized and specialized new small giants". Currently, more than ten toy enterprises have been recognized by the government. "As an industry association, we strongly support the development of enterprises towards specialization, specialization, and innovation. Toys are creative products, and specialization, specialization, and innovation not only effectively expand the market, but also reduce the pressure of homogeneous competition." Li Zhuoming said.

Shenzhen Toy Fair is known as "the wind vane of China's toy market", and the exhibition situation can roughly predict market consumption and trend trends. "This year, categories such as building blocks, cards, Rubik's Cube, and blind boxes are expected to continue to sell well, but plush toys, collectable pocket models with animation IP authorization, and other items are more likely to sell well." An industry veteran from the exhibition organizer said, "It is also seeing huge business opportunities, with the innovation of the above categories of products particularly prominent, and the enthusiasm for seizing the market continues to rise."

Another trend that cannot be ignored is that foreign toy brands seize every opportunity to actively explore the Chinese market. Famous animation IP derivative products such as "Disney", "Altman", and "Fairy Treasure Dream" are all available at this exhibition. Many domestic brand companies have taken a different approach, pushing China-Chic, military theme series and other products, such as the well-known building block brands "Senbao", "Enlightenment" and "Little Luban", which are very prominent in this regard. There are also enterprises that are optimistic about the toy consumption power of the youth group, and have launched plush toys that simulate pet companions such as cats and dogs to meet their needs. Recently, chat robots (Chat GPT), which have aroused heated discussion among the society, also have prototype products for toys. Many enterprises at this Shenzhen Toy Exhibition have displayed voice toys.

In order to help enterprises "seize orders and stabilize foreign trade", the organizers of Shenzhen Toy Exhibition took advantage of the restart of domestic and foreign trade exchanges to widely invite overseas buyers to return to the production area for procurement trips. For a small number of foreign buyers who are still limited in their visits, the exhibition organizers continue to provide online business matching services, creating more opportunities for Chinese toy companies to go overseas. Huacheng Import and Export Data Observation reports.