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Mixed worries and joys, talk about the toy industry under the Sino-US trade war

by:Toysmax     2021-05-14

Recently, the trade dispute between China and the United States has largely affected the development of various industries. With the continued increase in tariffs, this “war” will not stop in a short period of time. In the interlocking, end-to-end global chain, the future will inevitably affect more industries.

The Sino-U.S. dispute has been going on for some time. The relevant media in Hong Kong believes that the U.S. currently does not have enough Chinese industrial products to combat. IPhone, children's toys, and more directly affect other consumer imports. Toy export trade is facing severe challenges

China is the world’s largest toy exporter, and the United States is also an important export market for China, occupying 30% of the market. This industry background determines the toy industry’s trade war The 'life' in China is not easy.

Compared with industrial and agricultural products, toys are not a necessity of life. The market demand for products is affected by the intertwining of many factors. Consumers may be dependent on toys. no.

At the same time, although the volume of toys imported from China by the United States is still increasing each year, with a year-on-year growth of 54.8% in 2018, domestic brands in the United States still have a relatively high market share. With the bankruptcy and liquidation of the city, the revenues of Mattel and Hasbro have declined to varying degrees, but the power of international brands still cannot be ignored.

To sum up, my country’s toy industry may be severely impacted in export trade under the background of the national game. Times make heroes, opportunities and risks coexist

The domestic toy industry started late. Compared with the mature toy market in the United States and Japan, the domestic toy market has not been Have a complete industrial chain and a strong enough head enterprise. On the one hand, the rapid increase in demand has led to chaos in the industry and rampant pirated toys; on the other hand, the presence of foreign-funded enterprises occupy part of the market resources and space, and domestic brands cannot compete with it in a short time.

However, starting from June 1, China will impose tariffs on imported toys from the United States. Like domestic manufacturers, the US toy industry has to pay for the 'emerging policies.' But no matter how the market and policies change, consumer demand will not drop sharply. Under the circumstance of trade-offs, the domestic toy industry can start a turnaround.

Many domestic brands have realized a few years ago that the toy industry must gradually establish their own brands to form an influential IP culture. Generally speaking, during the steady development of the market, such goals are the result of long-term precipitation. However, as the so-called 'time makes heroes

At present, domestic players have already been involved in modeling design, raw material supply, mold processing, parts manufacturing, assembly molding, packaging and decoration, animation products, exhibition trade, sales and transportation, etc. A relatively complete system has been formed. With the support of years of IP precipitation and the assistance of national policies, there is a certain opportunity to restructure the industry brand structure. The way for domestic players to break the game

The increase in taxation affects the entire industry, but subdivided into consumers, we will find that consumers of high-priced toys have sufficient economic capacity. Their requirements for consumer products are not in price, but in quality. Therefore, the high-end and quality of toys must be the direction that domestic players aiming at the mid-to-high-end market to achieve breakthroughs. As for the low-end bending moment market, with the current domestic manufacturers' scale and capabilities, most of them can be self-sufficient and free from tariffs.

In terms of cooperation, it is not uncommon for toy brands and well-known IPs to join forces, each time they can earn enough eyeballs and economic effects. Coinciding with the special period of the Sino-US trade dispute, such 'group warming' can actually not be limited to the ACG industry. Film and television, sports, etc. may actually become partners in the toy industry.

Article source: Toy Frontier

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