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What are the challenges facing the children's smart toy market

by:Toysmax     2021-05-06

Only toys are becoming more and more popular with the public, and their market conditions are quite impressive. Although smart toys sell well, most of them are children's toys of foreign brands. So what challenges does my country's domestic smart toy market face?

Smart toys lack their own brands

There are not many domestic companies that have their own brands and their brands are influential and well-known in the market. Private brands The lack of this has led to the result that smart toy manufacturers have produced first-class products, but have not exchanged reasonable profits from the market. Moreover, even self-developed products lack vitality and appeal due to the product image, which makes the product unable to have a long life cycle and rich value-added return.

Smart toy non-planned consumer goods

Smart toys are suitable for impulsive consumption, not planned consumption. Most parents born in the 1980s buy toys for their children, not when they plan to buy them, but are attracted by various smart toys. Therefore, the purchase of smart toys is also arbitrary.

Domestic peak season is less

In China, it is difficult to have a peak season for smart toys, except for International Children’s Day, unlike in the United States, where Halloween, Christmas and other festivals Both are shopping peaks for toys.

Severely rely on the international market

In addition, most smart toy manufacturers are processing or sample processing enterprises and rely heavily on the international market. The heavy dependence on the international market has caused the survival and development of enterprises to be affected during the turbulent and volatile historical period of the international situation. For example, the various directives and regulations continuously issued by various countries in the near future are also having a profound impact on the domestic smart toy industry.

High cost of after-sales service

The structure of smart toys is more complex than ordinary toys, so the cost of after-sales service is also high. In the e-commerce environment, after-sales services such as cleaning, maintenance and repair of smart toys also require logistics participation. In addition, because smart toys are not standardized products, the user experience is difficult to be consistent, so there are more after-sales problems that follow.

Smart toys lack innovation

Most of the smart toys produced by domestic toy manufacturers are plush electronic pets and simulation dolls with very serious homogeneity. In the smart toy industry, novel and strange packaging and styles are extremely attractive to children. However, some smart toy manufacturers stick to one or a few products, do not pay attention to the development of new products, and still use old products to cope with new market competition and fight price wars.

The industrial chain is in a passive position

In the division of labor in the international industrial chain, my country’s smart toy industry is mainly based on processing trade, generally supplemented by trade, and is in the smart toy industry chain. Low-end manufacturing links, while other links such as production research and development, product design, order processing, logistics and transportation, warehousing, wholesale, and retail are in the hands of foreign investors, and the entire industrial chain is almost controlled by foreign manufacturers. Relying on its dominant industrial chain and superiority in orders, foreign companies have continuously lowered the ex-factory price, and

easy to provoke price wars among Chinese manufacturers, leading to fierce price competition among domestic manufacturers and making Chinese manufacturing go vicious cycle.

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