Xin Ou
Research expert covering Greater China
Toy industry in China - statistics & facts
China has long been associated with renowned brands such as Lego, Bandai, and Hasbro, serving as the world’s toy factory. However, due to rising labor costs and declining labor force in recent years, the country has seen intensifying challenges from other competing territories, requiring Chinese toy manufacturers to reposition themselves strategically.
Global toy powerhouse
For decades, China has been the world's largest toy manufacturer and exporter. Toy makers in China typically work as OEMs (Original Equipment Manufacturers), whose products are then branded and sold under names of other companies around the world. But now, although it is difficult to find comparable infrastructure and mature manufacturing lines elsewhere, toy companies are trying to shift production away from China to lower cost bases. In response, many Chinese toy makers have changed their marketing strategy and positioning, either developing their own intellectual property rights, establishing their own brands, or initiating cross-border e-commerce businesses.More than just child's play
The domestic market saw a steady growth over the past years despite a decline in newborns. Not only are parents more generous, but a booming number of adults who buy toys were responsible for the market surge. Lately, art toys usually designed for collecting purposes have won the heart of Chinese consumers, with the pop toy market experiencing phenomenal growth since 2017. Many toy brands have benefited from producing licensed toys and collectibles in cooperation with famous movie, game, or anime companies. Notably, a homegrown company, Pop Mart, has overcome Lego by offering a series of sensational blind box toys, becoming the leader of the Chinese art toy market.Work precisely or think boldly
To gain traction on the market amid the fierce competition of global giants, toy companies may either work precisely to offer the best product quality or think boldly to convince the market with creative and innovative toys. With the popularity of China-chic, toys bearing traditional Chinese elements might capture consumer attention more easily. In addition, the development of AI technologies has enabled the diversification of smart toys, which exhibit a substantial potential for growth.
