Plush Toy Market Analysis

Toys have a strong industrial connection.

Industry with a long industrial chain.

China is the largest toy in the world

Producing countries, large-scale toy companies have

1304

Home, made global

75%

About toys, three of them

The capital enterprises still occupy the leading position in the industry.

China's toy manufacturing industry is a region with a high degree of concentration

industry,

Mainly concentrated in the coastal areas where reforms and opening up were earlier and economically developed.

Guangdong,

Jiangsu,

Zhejiang,

Shanghai,

The five provinces and one city in Shandong and the annex have always been the most important production and export bases for Chinese toys.

China Toys Year

Sales of

95%

Above, Guangdong accounted for Chinese toy sales

50%

the above. China existing

14

Under the age of

For children

2.86

With more than 100 million people, the children’s market is extremely broad. At the same time, adult casual educational toys have become

A trend, containing huge business opportunities. The apparent demand of the toy industry in China is

2003

Get Fast

Exaggerated, but in

04.05

The year-on-year growth rate has dropped again. This is mainly due to the import of foreign toys.

Reduced production, but I

05

year

37.36

The apparent demand of billion U.S. dollars indicates that the demand of China’s toy market is still

It is quite large.

Toys in the domestic market are about

3

More than a million varieties,

Toy products mainly include:

Cloth and plush toys,

plastic

Toys, electronic toys, model toys, educational toys, etc., among which are plush toys and children's cars.

Model toys are best sellers.

With the development of our country’s economy,

In the consumption expenditure of urban and rural residents in China,

Toys

Spending has always maintained a good momentum of continuous growth.

However, as the world’s largest toy producer and exporter, China has long relied on foreign manufacturers.

Lack of own brand;

Having a huge market did not bring enough profits.

China's huge city

In the end, who is winning profit?

Toys are an industry with strong industry connections and long industry chains. China is the largest producer of toys in the world. There are 1,304 large-scale toy companies that produce about 75% of the world's toys. Three foreign-funded enterprises still dominate the industry. China's toy manufacturing industry is a highly concentrated industry in the region. It is mainly concentrated in the coastal areas where reforms and opening up were earlier and economically developed. Guangdong, Jiangsu, Zhejiang, Shanghai, Shandong and the annexes have always been the most important Chinese toys. The production and export bases account for more than 95% of the annual sales of Chinese toys, of which Guangdong accounted for more than 50% of Chinese toy sales. There are more than 286 million children under the age of 14 in China, and the children market is extremely broad. At the same time, adult casual educational toys have become a trend and have huge business opportunities. The apparent demand of China's toy industry was rapidly exaggerated in 2003, but the growth rate decreased again in 2004. This was mainly due to the decrease in foreign toy imports, but my apparent demand for $3.736 billion in 2005. This shows that the demand for China's toy market is still quite large.

There are about 30,000 kinds of toys on the domestic market. Toy products mainly include: cloth and plush toys, plastic toys, electronic toys, model toys, and educational toys, among which toy models based on plush toys and children's cars are also included. Best selling. With the development of our country’s economy, toy spending in China’s urban and rural residents’ expenditure has always maintained a good momentum of continuous growth.

However, China, as the world’s largest toy producer and exporter, has long relied on foreign manufacturers and lacked its own brand. However, having a large market has not brought sufficient profits. Who is winning profit for China's huge market?

Nearly 10,000 Chinese toy manufacturers have more than 3 million people engaged in toy manufacturing. In the global market, everywhere is the "Made In China" toy, but there are few brands that really belong to China. What are these toy manufacturers doing? The answer is processing.

Many of China’s toy manufacturers are simply relying on foreign companies for a long time, simply doing some simple processing such as processing and sample processing. There is no product at all. It is understood that in some areas where toy companies are relatively concentrated, the export prices of toys produced by some companies can be calculated using a very simple formula: export price = raw material price × weight + processing fee - that is to say, companies earn from it. The profits taken are only processing fees, and such profits have been pushed to a low level. According to the person in charge of the toy manufacturing company, some of the toys they produce often have very complicated processing procedures, and the processing fee that companies earn from each toy is only about US$2. Some processes are simple plush toys, and the processing fee for a single product is even a few cents. Those toys that are popular with children, such as Transformers and Barbie dolls, are manufactured in China and exported at a low price. They are affixed with the trademarks of famous foreign companies and sold at high prices. These toys are used in international and domestic markets. The selling price will increase more than 5-10 times.

In China, the rise of adult toys is still a matter of recent years. Toys are no longer children's patents—many toy designs are increasingly intelligent, and the content of electromechanical and scientific technology is increasing, and they are increasingly adapted to the needs of consumers of different ages. Toy psychologists believe that adults also have game psychology, and they always hope to find the balance lost in the real world in a game world. Because for adults, playing with toys in a stressful and busy life can temporarily forget about stress – so toys become the best tool for decompression. For the elderly, toys can be lonely, increase the amount of brain activity in the elderly.

According to a survey conducted by the China Social Survey Office, the Chinese toy consumer market has great potential. It is estimated that the adult demand in the adult toys market in China is only about RMB 50 billion a year. Foreign experience also shows that the development and sale of toys is oriented toward adults and is a new hot spot in the world toy industry.

In foreign countries, many companies have specialized departments to develop toys suitable for adults. In China, the consumer market for adult toys has just begun to take shape. Expert analysis believes that for toy companies, as long as they seize opportunities,

Break through the traditional simple toy model, increase research and development efforts, from the development of educational, entertainment-type products to find ways to work hard to design and manufacture a product system with its own characteristics to meet market demand. Chinese toy companies can increase their market share. Only innovative thinking and innovative systems can make Chinese toys embark on the road to branding from processing.

In the distribution of Chinese toys, although 75% of the toys are made in China, the Chinese toy industry does not have a strong professional channel, which contrasts sharply with the department stores, home appliances, building materials and other industries. At present, people can hardly find any toy chain stores spanning more than five cities in China. Most of the toys are through agents, distributors, and wholesale markets, and finally reach a couple shop with an area of ​​less than 4 square meters. In this supply chain, it seems that no company other than Mattel or Walt Disney has a huge profit.

Toys R Us is a multinational toy retailer in the United States with nearly 1,500 stores worldwide. In 1980, he logged into Hong Kong and has so far had 9 branches in Hong Kong. In November 2006, it registered at Super Brand Mall, Lujiazui, Shanghai, China.

The market position of Toys R Us is to bring joy to the family with children. It is also the world's largest special chain for children's products. It collects toys and baby products with the most styles for customers, and offers a shopping environment that is both large and small in value.

The business model of Toys R Us is worth thinking about by Chinese businesses. one. Demand scale

1. According to statistics, out of more than 1.3 billion people in China, young children and children under the age of 14 are close to more than 300 million people, accounting for 25% of the country's population and accounting for about 1/3 of the world's school-age children. There are 80 million urban children in China, and they constitute an unusually large group of toy sales fees.

2. Since most young couples in modern families have only one child, parents are willing to spend on them.

3. According to the survey, 59% of the purchases of learning tools and toys are made by children. As for entertainment, the proportion of children who make decisions is also more than 50%.

4. According to statistics, domestic urban children's annual per capita toy consumption is about 35 yuan (RMB, the same below), rural children are less than 10 yuan, urban adults are 12 yuan, and rural adults are almost zero. Compared with other countries, domestic per capita toy consumption is low, and the per capita toy consumption in some developed countries reaches US$340, European countries US$144, and Asian countries US$13.

5. To spend at least 10 yuan per year for a family of three to buy a toy, the annual consumption of toys is as high as 4 billion yuan. With the improvement of living conditions of domestic residents, toy consumption will become higher and higher. It is predicted that sales of domestic toys will exceed 10 billion yuan in 2000, and will increase at a rate of 40% per year.

6. It is estimated that children in urban areas have an average of 10 to 15 toys each. According to the survey, 22% of the households surveyed are willing to purchase imported toys, indicating that imported children's toys should have good sales prospects in China.

7. It is understood that the price of toys generally accepted by consumers in major and medium-sized cities is roughly below 100 yuan. However, in many cities and even in some medium-sized cities, novel and upscale toys with a price of over 1,000 yuan and even 10,000 yuan also have their markets. Second, the market characteristics

1. Chinese toy products include plush toys, plastic toys, electronic toys, wooden toys, metal toys, leather toys, children's cars and other miscellaneous toys, among which soft toys and children's cars are best sellers.

2. In the past, consumers would buy some traditional toys such as electric type, assembled type or middle and low grade plush, cloth type toys. Now, their demand for toys has changed.

3. According to the survey, 34% of consumers will purchase electronic toys, 31% will choose smart toys, and 23% will love high-grade plush, cloth decorative toys. While rural consumers still use traditional toy types, 35% of rural consumers are willing to buy electric toys, 28% are willing to buy assembled toys, and 24% are willing to buy middle- and low-grade plush and cloth toys.

4. In recent years, the sales of children's toys continue to be promising, and the following characteristics have emerged:

Model Toys - Electric model toys also appeal to children and adults such as tanks, cars with siren, and so on. Although the price of these toys is not cheap, especially electric toys, generally about 70-80 yuan, and some even as high as 700-800 yuan, but the sales are good.

Remote Control Toys - Toys with high-tech appearance such as vocalization, glowing electronic toys, remote control toys, and interactive toys capable of speaking or performing a series of actions are all very popular. There are nearly 100 types of remote control toys currently on the market, mainly cars, boats, and airplanes. The remote control car is about 130-500 yuan, the remote control boat is about 150-400 yuan, and the remote control aircraft is between 3,400 yuan and 16,000 yuan.

Plastic Toys - Plastics have replaced metal, wood, and ceramics as the main toy making materials because of their low cost, ease of handling, safety, and portability.

· Children's toys changed from seasonal to seasonal bestsellers. In the past, parents only bought toys for children during the Chinese New Year. With the change in people’s consumption concepts, children’s toys have become popular products throughout the year.

5. At present, there are about 30,000 kinds of toys in China, but most of them are suitable toys for children aged 4-8. Not many toys are suitable for infants, early childhood and children, and toys for adults are fewer. . As the toy sales target is expanding from children to adult markets, this will become a new hot spot for the toy market.

6. According to the survey, in addition to the traditional war chess, chess, chess, checkers, and kites, adult men prefer computer intelligence toys; adult women prefer high-end and exquisite decorative toys. Materials include wood, clay, porcelain, velvet, cloth, etc. Species such as dolls, plush dolls, wooden toys and small animals and long-haired dogs, etc.; middle-aged people will buy recreational and mild sports toys; and older people prefer various kinds of ornamental toys. , small animal toys, doll toys, etc.

7. In the United States, companies that already have adult toy products, more than 40% of their toys are designed and manufactured specifically for adults. Weapons and toys, such as aircrafts, warships, tanks, pistols, artificial pistols, emulational brand cars, and even electronic pets, which have been popular in the Japanese market in recent years, are very popular with adults. According to the survey, the proportion of toys for entertainment, education, and decoration is 40%, 35%, and 20% respectively.

8. In addition, more than 80% of Chinese children live in rural areas. This is also a huge consumer group and the demand for their toys cannot be ignored. In addition, markets such as mentally handicapped children's toys and handicapped children's toys have yet to be developed.

9. Domestic consumers’ demand for toys is mainly concentrated on medium- or low-grade products, which account for more than 80% of overall toy sales. Although low-end toys have an absolute advantage in terms of price, most of their products are of poor quality, have a low degree of security, and infringe the original product's patent rights. Most medium-sized and large shopping malls prohibit the sale of such products.

10. Distribution Channels • As China did not have a complete toy supply and marketing system in the past, large department stores or retail companies relied on buyers to purchase directly from manufacturers.

· In recent years, a number of toy wholesale markets have been established in China, such as large toy wholesale markets in Xi'an, Guangzhou and Shenzhen, which have been launched. These modern, multi-functional, large-scale toy center wholesale markets have a wider radiation surface and play an important role in production, supply, and sales.

• While some domestic companies have also joined major toy manufacturers in Hong Kong, Shenzhen and other parts of Guangdong, they have launched toy stores and implemented chain operations. Third, the competition situation

1. China is a world-famous toy production and exporting place. One-third of the world’s toy production comes from China. In 1998 alone, the value of toy production reached 50 billion yuan, and exports reached 5.4 billion US dollars. According to statistics, more than 80% of domestic toy export products belong to processing trade. At present, there are about 6,000 toy manufacturers nationwide employing more than 13 million people. Most toy manufacturers are concentrated in coastal provinces; Guangdong alone has about 4,000 toy factories, most of which are invested by Hong Kong companies.

2. At present, foreign manufacturers produce as many as 150,000 toys each year, of which 5,000 to 6,000 are new products. The competition among toy makers produced by domestic companies is mainly concentrated on middle and low-end products.

3. However, some toy companies in China have also established their own brands. For example, the four-wheel-drive fans produced by Audi Toys in Guangdong, Chicco toys produced in Dongguan, Guangdong Province, and remote-controlled cars, simulation vehicles, simulated motorcycles and simulated aircrafts produced in Shanghai and Fuzhou, etc., are highly popular with consumers. Favor. Other domestic toy products include Jiafei Plush Toys, Veyron Jigsaw, Bailiwei Toy Models, and high-build toys.

4. According to investigations, currently the world-famous toy companies have set up factories in China or domestic manufacturers to produce toys. Like Japan’s Bandai Corporation, which produces [electronic pets], the long-established toy Barbie dolls have many branches in the country. Other foreign brands popular in the country include Mickey Mouse and Lego.

5. Due to the issue of import tariffs, the prices of foreign-made toys are generally high in the mainland market. With different traditional cultures, the share of imported toys in the domestic market is still relatively small. However, if foreign companies adopt a joint venture approach to transport their foreign designs and raw materials to China for processing, this should be of great help in infiltrating the mainland market because most of these companies have a good distribution network.

6. Chinese toy exports have become a major pillar industry for light industry, and Japan and Southeast Asia are still the main markets for Chinese toy exports. The main products are long-nap toys and electric car models. From the second half of 1998, China Toys has successfully opened up markets in the United States and Europe, and export products are still dominated by long-lasting toys.


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