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[Chinese and Foreign Toys Network March 21st News] As the world's largest toy production and export base, China is the world's second largest toy consumer. On the occasion of the new year's exhibition of the domestic toy industry-the 30th Guangzhou International Toys and Models Exhibition and the 9th Guangzhou International Baby Carriage and Baby Products Exhibition are about to be held, Li Zhuoming, president of the Guangdong Toy Association, notified the media The relevant situation of the operation of China's toy industry in the past year. 

Li Zhuoming, President of Guangdong Toy Association (profile picture)



1. Industry operation



In 2017, the overall operation of China's toy industry was good. According to data from the Ministry of Industry and Information Technology and other relevant departments, the industry's production and sales rate last year was 97.8%, a slight decrease of 0.3% year-on-year; the main business income was 235.71 billion yuan, an increase of 8.5% year-on-year; total profit was 127.8 100 million yuan, an increase of 8.8% year-on-year; there are estimated to be more than 7,000 toy manufacturers in the country, and only 9,659 companies have export records in 2016. China's toy industry has made greater development in 2017, and the biggest highlight is that the export volume of products hit the largest increase in 10 years after the world economic crisis in 2007.

2017 Guangzhou Toy Fair site (data picture)



2. Product Export



In 2017, China's toy export performance was impressive. The annual toy export was US $ 44.15 billion, a year-on-year increase of 31.2%, of which the export value of traditional toys was US $ 23.961 billion, an increase of 30.4%. More than 70% of the products sold on the world toy market are made in China, and more than 80% in the European and American markets. Guangdong is still the largest province in China ’s toy exports, with annual product exports of US $ 22.706 billion, a year-on-year increase of 24.1%, accounting for 51.49% of the national total toy export, including traditional toy exports of US $ 13.043 billion, an increase of 14.36%, accounting for the national export value 54.47%. The above is the statistics of the customs. In fact, due to the migration of export data of corporate products, the proportion of Guangdong's toy exports in the country is larger than the statistical data, especially traditional toys, still account for about 70% of the country.

A toy factory in Guangdong (data picture)



3. World Market



European and American countries are still the world's major toy consumer market, accounting for about 60% of the global share. In 2017, the sales of toy markets in Europe and the United States were satisfactory. At the beginning of the year, fingertip tops were popular in the market. Collectible products such as Hatchimals and Shopkins sold well throughout the year. During the Christmas toy sales, the United States even had a scalper The finger-tip monkey, which priced at $ 14.99, was frowned on the Internet for $ 200, which caused congressmen to intervene. The demand for toys in emerging markets is equally gratifying. Take Guangdong as an example. Last year, the export volume of Guangdong toys to Latin America increased by 31.4% year-on-year, Africa increased by 60.4%, to the BRICS countries India increased by 162.5%, Russia 84.1%, Brazil 35.6%, South Africa 33.4%. According to estimates of customs data of various countries, last year's world toy market consumption was about 89.87 billion US dollars. Among them, the United States accounts for 33.8%, the EU 26.4%, and China is second only to the United States. It is the world's second toy consumer, accounting for 9.6% of global consumption.

The activities of Chinese original building block brands in shopping malls are extremely popular (profile picture)



Five, consumer trends



Toys have the attributes of trendy consumer goods, and what products are better sold is often related to the promotion of the market by film and television works, especially cartoons. There were three main categories of toys that were more popular in China last year:



First, animation IP derivatives. Affected by the popularity of "Racing Cars 3" and "Wonder Woman", related derivatives are more popular in Europe and the United States, becoming a bright spot in the market. Domestic IP "Super Hero" and "Pig Pig" continue to exert force, and derivative toys are very popular. The integration of the animation and toy industries has now become a trend. Guangdong is not only a big province for toy production, but also a big province for animation games. Therefore, Guangzhou International Toy Fair has become the first choice for the industrialization of animation IP. At the exhibition, there are many animation-derived products and become a major feature.

2017 Guangzhou Toy Fair Animation IP Authorized Exhibition Area (profile picture)



The second is intellectual toys. Wangzi Jackie Chan is the common wish of parents all over the world, so traditional toys such as building blocks, puzzles, robots, etc. that are good for nurturing children's intelligence and practical ability are not only sold in the European and American markets, but also in China.



The third is the recovery of market demand for game consoles. Last year, due to the launch of a new generation of consoles by the gaming giant Sony, many game fans updated their equipment. Last year, the sales of the game console market were ideal, which also promoted the substantial growth of China's game console product exports in 2017. The number increased by 45.65% year-on-year, and the amount reached US $ 3.227 billion, an increase of 373.39%.



6. Brand Competitiveness



After years of hard work by Chinese toy companies, the domestic toy high-end market has been firmly controlled by imported products. Some domestic brands have been able to fight against imported products, although some traditional categories of products such as dolls are still occupied by Barbie dolls and building blocks by Lego products. However, the share has been shrinking, and the proportion of domestic brands of the same type is constantly expanding, especially many innovative products such as robots for technology toys, remote control aircraft, and car models. Obviously, no foreign brands can compete with Chinese products. Chinese brands such as Aofei, Meizhi, Yade, Xinghui, Xinyu Technology, Shuangying, Jiaqi, Weili, Wange, Bangbao, Enlightenment, Kerr, etc., have obviously shared the high-end toys market at home and abroad. In fact, the Guangdong toy industry, which is dominated by "processing trade", the share of products exported by "processing trade" in 2017 continued to decline by 9.7% year-on-year, from more than 90% at the beginning of the reform and opening up, to only account for 42.52% means that significant progress has been made in industrial transformation and upgrading. Guangdong's toy industry, which accounts for 70% of the country's toy production capacity, is no longer dominated by processing trade.

The market share of domestic brand toys continues to expand



Seven, sales channels



Affected by e-commerce, toy sales channels, supermarkets and department stores and district shops have shown a downward trend in recent years, but online sales have developed rapidly. At present, online sales of enterprises (including B2B and B2C) account for about 20% to 30% of the annual sales. On domestic e-commerce platforms, toy selling products are mostly traditional products such as building blocks, plush and baby toys. The professional exhibition is still the main channel for manufacturers to display products and expand the market. The exhibition area of the 30th Guangzhou International Toy Fair and the 9th Guangzhou International Baby Car Show will be expanded to 10 from April 8 to 10, 2018. 10,000 square meters, an increase of 23% over the previous year, with nearly 4,000 booths, it is expected that more than 55,000 global professional buyers will purchase on the spot.    

2017 Guangzhou Toy Fair site (data picture)



8. Market forecast



Toy consumption is closely related to economic development. According to the International Monetary Fund (IMF) forecast: The global economy will grow steadily in 2018 to reach 3.8%, higher than 3.7% in 2017. For such reasons, as long as there is no war and natural Disasters and other events are expected to maintain a good trend in world toy consumption this year. Especially in the domestic market when the two-child policy is fully liberalized and the economy is accelerating, the demand for toys is even more substantial.