Gifts / Sports & Toys

According to Huacheng Import and Export Data Observation, the toy industry has undergone tremendous changes compared to 20 years ago. Firstly, the target users of toys continue to expand, with toys not only serving children, but also expanding to the entire age group; Secondly, there are more and more people who can sell toys. On video platforms such as TikTok and YouTube, some people earn significant income through videos such as unboxing toys and parent-child interactions.

Which new channels are worth toy layout?

1) A Hundred Flowers Bloom on Online Emerging E-commerce Platforms

Different from offline stores, e-commerce platforms have the advantages of specialization and variety, such as traditional e-commerce platforms represented by Taobao, Tmall, JD, Pinduoduo, etc. These platforms, by virtue of price advantages and convenience in express delivery, are enough for consumers to shop around when buying toys.

At the same time, emerging online platforms such as Tiktok, Kwai and Xiaohongshu are also accelerating their commercial transformation, increasing their commodity sales functions and attracting many toy businesses to settle in. For example, on the Tiktok platform, online toy evaluation experiment videos have attracted a large number of user traffic and become a new channel for toy brands such as Lego, Enlightening Building Blocks, Bruco, Aobei, Babycare, Audi Double Diamond, etc. According to the data of Cicada Mama, from January to June 2022, the sales of toys and musical instruments on the Tiktok platform increased by 323% year on year, showing a trend of rapid growth. Huohuo Rabbit, who has been deeply involved in the industry for many years, has also been exploring new growth in the past two years by means of new channels, cooperation with Tiktok, Kwai and Daren, and self broadcasting in stores.

However, the development advantages of each platform are also different. Kwai is more sinking, Tiktok is more inclusive, and the display content is richer. The video number is more private, and Xiaohongshu has a stronger grass planting economy. For emerging community group buying, more toy merchants see it as a supplementary channel for toy sales, as reported by Huacheng Import and Export Data Observation.

2) Offline toy stores, trendy toy stores, convenience stores, and others

Convenience store/community store

In interviews conducted in the maternal and infant industry, senior toy players stated that channels with strong vitality are those with strong smoke and fire, and they continue to thrive.

Stationery stores and community stores on the school street are among them. They have been included in the category of toy brand expansion channels with the advantage of accurate target population and easy to form public praise. For example, brands such as Brooke, Enlightenment Building Blocks, Ye Luoli, etc. have all laid out such channels. Although this type of small store is not very eye-catching, operators can gain a close understanding of consumers' preferences and consumption habits, and can quickly receive feedback on whether products are selling well.

In terms of expanding channels, some toy brands have also turned their attention to convenience stores. According to the "2021 China Convenience Store Bestseller Interpretation and List" released by the China Chain Store Association, in the sales statistics of non food products, the "Super Universe Ultratech" hero card of Kayou has become the only item on the list in the category of cultural and entertainment products. Convenience stores are valued by toy manufacturers for their long operating hours, abundant product resources, and location advantages. Nowadays, brands such as Aofei Entertainment, 52TOYS, Card Game, Lingdong Chuangxiang, and Wandai are all laying out convenience stores. However, in convenience stores of brands such as 7-ELEVEN, Convenience Bee, and JD.com, the toy category mainly consists of small-sized blind boxes, water guns, cards, building blocks, and IP peripheral displays.

Trendy Playhouse/Trendy Department Store

In recent years, trendy department stores have also become the "standard" for toy brands to attack the market. It is reported that trendy department stores are mostly located in densely populated areas, such as large shopping centers, shopping malls, subway stations, and other places. Different toy brands can be seen in trendy department stores such as 1983, Jiumu Sundry Club, Kule Chaoplay, Miniso and Chaoplay collection store X11, TOP TOY. Brands include Disney, Wandai, Audi Double Diamond, Enlightenment, and Keepley building blocks, ranging from stickers, mini blind boxes, puzzles, building blocks, board games, to Stuffed toy.

Toy stores/independent stores

Although emerging online channels have given toy brands greater opportunities, toy brands that want to become bigger and stronger, expand brand awareness and product sales, and have unique offline consumer experiences are also essential. For example, LEGO, Bubble Mart, and Huotu are all planning to open more offline stores.

Li Xin, the founder of Huohuo Tu, once told the observation of the mother and baby industry that in the channel end, the focus will be on private domain and authorization. Huohuo Tu will also re impact the third and fourth tier markets, and IP authorization and channel capabilities will be released to increase market coverage. At present, Huohuo Tu has 6 direct stores, with 5 in second and third tier cities.

In addition, offline channels include mother and baby stores, supermarkets, retail stores, robot stores, Pop-up retail, toy fairs and distribution channels. Toy brands can gain a deeper understanding of consumer demand and industry trends, such as baby toy exhibitions, trendy toy exhibitions, and anime exhibitions. If expanding into overseas markets, they can also gain a deeper understanding of local markets.

02

What is the next trend in the toy industry?

As the younger generation becomes the main consumer of mothers and infants, they are gradually changing the market, and consumer demand is showing a trend of high-quality, branded, and personalized development. As a result, more and more segmented new and cutting-edge brands are constantly emerging, such as building blocks, trendy toys, STEAM toys and other segmented categories, which are also opportunities for latecomers. Huacheng Import and Export Data Observation Report.

Among them, building blocks have always been a popular category on major e-commerce platforms. According to Huacheng Import and Export Data Observation, building blocks account for 16% of the entire toy market in China, with production reaching about 13 billion yuan, making them the category with the highest proportion in the toy market.

In the field of building blocks, although Lego has dominated the market for many years, "Chinese building blocks" have also been actively seeking changes in the past two years to explore new opportunities in the category. In particular, taking advantage of the trend of the country and the trend of playing, Lego has created trendy original, IP co branded building blocks, collectible building blocks and other products that young people like. Many brands have gone out of their own unique style and achieved growth against the trend. Extended Reading: 2022 Children's Building Block Brand Power Ranking Top 20 Released! Emerging players are poised for new changes in the building block toy industry?

Compared with the building blocks with strong educational properties, Stuffed toy appear to be a bit "off the beaten track". Loveliness, companionship and comfort are their unique labels. In the adult world with increasing pressure, Stuffed toy are no longer exclusive to children. More and more young consumers become the main consumers of Stuffed toy. Young consumers pursue more comfortable touch, more fashionable design, more yuan of IP and social play. Amazon data shows that Stuffed toy dominated the growth of toy categories, and its sales revenue rose by 32% from the beginning of 2022 to November. In addition, more interactive and interesting intelligent toys are also worth market attention.

STEAM toys, an emerging sub category, also deserves attention from businesses. According to Nint Rentuo's data, combining data from the three major platforms of Tmall, Taobao, and JD.com, STEAM toys/teaching aids increased by 13.6% year-on-year.

Especially under the influence of the "double reduction" policy, parents prefer educational toys that can cultivate children's creativity and hands-on abilities. The strong demand from consumers has prompted science and technology innovation companies and toy companies to step down and launch STEAM related products. However, industry insiders believe that the STEAM toy/teaching aid toy category is currently only at the conceptual level, and brands can use its "Dongfeng" to boost sales growth. There is still significant room for exploration in its product structure and pricing.

In addition to building block toys, STEAM toys/teaching aids have become a sales trend, and as a regular variety of simulation/home toys, they have also become a new favorite in the market. It is reported that children's kitchen cooking toys can cultivate children's hands-on ability, and their cooking tools can be subdivided into different food production and food application scenarios, such as Rice cooker, Non-stick surface, milk pans, and dumplings.

Food and Play Cooking Kitchenware Set

It is worth noting that new products are the main driving force for brand growth. According to Tmall data, in 2022, there were over 70 "million new products" of toy toys, with a year-on-year increase of over 150% in the number of new children's toys and over 300% in the number of trendy toys; The new product, Cherry Meatball's Home, debuted during the Double 11 season and broke the million mark; The Lego Group's 2022 financial report also shows that 48% of the products sold last year are new products. Huacheng Import and Export Data Observation Report.

Overall, there is a significant trend in the toy market towards intelligence, IP, fun, and intelligence. As the new generation of consumers increasingly refine their demand for toys, diversified, highly targeted, and safe products will have a more competitive advantage and be easier to stand out in the market. (Translated from: Toy Frontier)