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Challenges and opportunities coexist, where is the way forward for the toy industry?

by:Toysmax     2021-06-05

As an old traditional industry, although the toy industry has undergone many changes, it still maintains a complete industrial chain and ecosystem. Although in the early stages of the industry’s development, Europe, America and Japan accounted for most of the market share. However, my country has been developing the toy industry rapidly in recent years as a catcher. Especially in terms of toy market retail sales, it has been ranked first in the world for the past two years. Since the wave of the world economic crisis in 2007, China’s toy market retail sales have maintained a strong upward trend. In 2019, toy The retail sales of the industry are expected to reach 300 billion yuan. In other words, the toy industry is facing huge opportunities and challenges in the coming year.

The increase in market demand

The domestic market for children under the age of 14 is as high as 226 million, and this data is bound to be due to the opening of the national second-child policy. With the continuous rise, toy manufacturers have to deal with not only plush toys and building block educational toys for children’s audiences, but also to be vigilant towards mature adult toys. As the younger generation’s spending power increases significantly With the promotion, the market share of electronic toys and intelligent toys is also increasing.

The rapid rise of the domestic market determines the pattern of the global toy industry. As the world’s largest toy producer and exporter, the growth rate of the Chinese market’s sales is twice that of the global growth rate. The consumption level of China is only 1/8 of that of the United States over the same period, so there is still a lot of room for the development of market breadth.

The Internet is subverting traditional sales channels

The Internet age is affecting the reform of most industries, and the toy industry is affected by several major domestic e-commerce platforms According to the 'White Paper on the Development of China's Toys and Baby Products Industry in 2019Online toy purchases Taobao and Tmall accounted for 54.3%, accounted for 25.4%, and Pinduoduo accounted for 9.1%. This is due to the fact that young parents spend less and less time in toy stores. The rapid and convenient online shopping has a direct impact on their purchase of toys.

The rise of e-commerce has given the toy retail industry greater opportunities, but it has brought greater challenges to the traditional toy manufacturing industry.

According to the comprehensive statistics of the China Toys and Baby Products Association, in 2018, the national toy market reached 70.48 billion yuan, a year-on-year increase of 9%; and in 2018, Chinese companies achieved traditional toy exports of US$25.84 billion, a year-on-year increase 4.5%; the import of traditional toys was US$649 million, an increase of 15.9%. The substantial increase in the import of traditional toys indicates that domestic related consumption is vigorous. In terms of the types, structure, and brands of some products, imported toys have certain advantages and can complement domestic toys.

Through the combination of the Internet and mobile phones, most consumers can obtain entertainment information at the first time, which means that everyone has higher requirements for the quality of consumer products, so IP authorization Toys and intelligent toys have emerged at the historic moment, and people's consumption of cultural images has also become higher and higher. Not only China, but the global sales of IP-licensed toys continue to rise. On the other hand, the increase in the number of second-dimensional users indicates that licensed toys will continue to be popular.

As one of today’s three cutting-edge technologies, artificial intelligence is also affecting the transformation of the toy industry. In recent years, the era of artificial intelligence has kicked off, and it will inevitably make a big difference in the next ten years. The development of the industry has led to another industry wave. Whether the toy industry can keep up with the pace of artificial intelligence technology and usher in the explosion of the industry remains to be determined.

Low brand awareness and lack of independent research and development capabilities

Throughout the world’s toy industry, Lego, Mattel, Hasbro, and BANDAI all have relatively High reputation and sufficient market share. In contrast, domestic brands such as Aofei Entertainment, Xinghui Entertainment, Bangbao Puzzle, and Interactive Entertainment have a common market share of less than 10%, which is equivalent to talking about The 'sweetest' piece of cake on the market was given to a foreign independent brand.

One of the reasons for this phenomenon is the lack of funds invested by domestic manufacturers in product creation, which has led to a lack of research and development capabilities. Ru0026D innovation has always been the core competitiveness of toy companies. The technology of toy products cannot keep up with the times, and the overall loss is inevitable. The resulting evil cycle will inevitably become the shackles of corporate breakthroughs.

Challenges and opportunities coexist is the only way for every industry. If you want to advance in the Internet wave, there is much more to do!

Article source: Toy Frontier

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