Gifts / Sports & Toys

China is the main concentration place of global toy production and the world's largest toy exporter. However, compared with toy enterprises in developed countries, China's toy industry has a low market concentration ratio and low brand awareness, so there is a great opportunity for integration. According to Huacheng Import and Export Data Observation, the Chinese toy market accounts for 13.8% of global toy retail sales, making it the largest toy consumer country in Asia. It can be seen that the Chinese toy market has a large scale and growth potential.

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

According to Huacheng Import and Export Data Observation, Chinese toys account for about 70% of the world market share, while Guangdong is China's largest toy production and export base. Thanks to the rapid expansion of toy consumption towards the adult population in recent years, such as models, handmade toys, trendy products, and game consoles, global toy consumption reached $100.4 billion last year, 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, and Mattel are all facing huge inventory pressure and poor performance. They have announced layoffs this year, and the market outlook is not optimistic. Huacheng Import and Export Data Observation Report.

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

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 contracting parties, including China, have committed to reducing tariffs, opening up markets, and reducing standard barriers to facilitate trade development. Will the production costs of ASEAN countries' enterprises be relatively low compared to China, which will have an impact on labor-intensive industries such as toys in China? 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 entrust production to Chinese enterprises. China's industrial advantages will not change in the next decade. The current industry urgently needs to address its shortcomings, which is the lack of world-renowned brands. So, Shenzhen Toy Exhibition has specially opened a display area for award-winning products of the "Sino foreign Toy Awards", fully supporting Chinese enterprises in innovating products and expanding brands.

In fact, the Chinese toy industry is aware of the pressing situation at home and abroad, and many enterprises have taken the initiative to upgrade and upgrade for differentiated development, actively applying for "specialized, refined, and new small and medium-sized enterprises" and "specialized, refined, and 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, refinement, and innovation. Toys are creative products, and specialization, refinement, and innovation can not only effectively expand the market, but also reduce the pressure of homogeneous competition, "Li Zhuoming believes.

Shenzhen Toy Exhibition is known as the "wind vane of the Chinese 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, collectible pocket models with anime IP authorization, and other items are more likely to be popular, "said an industry veteran from the exhibition organizer

Another trend that cannot be ignored is that foreign toy brands seize every opportunity to actively explore the Chinese market. Famous anime IP derivative products such as "Disney", "Ultraman", and "Pok é mon" 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. Some companies are also optimistic about the toy consumption power of the youth group, and have launched plush toys with pet companions such as simulated cats and dogs to meet their needs. ChatGPT, which has recently sparked social discussion, also has prototype products for toys. Many companies 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 invite overseas buyers to return to the production area for procurement trips. For a small number of foreign buyers who are still restricted from visiting, 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 Report.