China's toy industry transformation and upgrading have achieved initial results

On the eve of the opening of the 29th Guangzhou International Toy Fair, China Securities Journal reporter interviewed Li Zhuoming, president of the Guangdong Toy Association, learned that the transformation and upgrading of China's toy industry in 2016 has achieved gratifying results: product exports increased by 9.46% year-on-year, general toys (commonly known as Small-caliber statistics) increased by 24.9%. The “general trade” exported by its own brand has surpassed the “processing trade”, which means that the Chinese toy industry has begun to get rid of the production model dominated by OEM for decades.

Animation derivatives become the biggest boost in the industry

In 2016, many cartoons such as "Frozen", "Star Wars", "Little Yellow Man's Eyes", "Kung Fu Panda" and "Bottom Story" were staged by children and parents. Stimulated by these popular animation and film works, the sales market is hot, which effectively promotes and expands the export value of Chinese toys. In the Chinese mainland market, as the economy continues to develop and people's purchasing power and brand awareness increase, the market for licensed products (IP derivatives) is also growing rapidly. According to a report released by LIMA (Global Concession Authorized Commodities Association), East Asia, including China, Japan, and South Korea, is the world's third largest licensed retail market for franchises, and its growth rate far exceeds the global average.

Guangdong Province is the world's largest toy production and export base. The annual Guangzhou International Toy Fair is also known as the vane of the Chinese toy market. The 29th exhibition will be held from April 8th to 10th at the Poly World Trade Expo Center in Pazhou, Guangzhou. The exhibition area will reach 3578 booths with an exhibition area of ​​81,200 square meters, attracting more than 1,000 domestic and foreign companies to participate.

It is reported that last year, the toy industry enthusiastically sought after IP with commercial value. In addition to the role image of animation and film, their opponents, online games, big movies and related project authorizations are also very interested. According to Li Zhuoming, this year's ELBM Matchmaking Conference was co-sponsored by the Guangdong Toy Industry Association, the Guangdong Game Industry Association and the Guangzhou Animation Industry Association. "This kind of industry associations working together to create a high starting point, high-efficiency information exchange, brand authorization, investment cooperation and copyright trading platform is a useful attempt to extend the animation industry, transform and upgrade the toy industry, and reform the industry supply side. It is very helpful."

Significant achievements in industrial transformation and upgrading

For a long time, the Chinese toy industry has always been regarded as a typical industry of processing trade. However, with the improvement of the brand awareness of enterprises in recent years, the Chinese toy industry is obviously no longer based on processing trade.

President Li Zhuoming told reporters that the rise of China's toy industry originated from the migration of Hong Kong and Taiwan toy companies in the early days of reform and opening up. However, with the rise of domestic private toy companies, especially since 2007, the industry has experienced the US toy recalls, economic crisis and The difficulty of the European debt crisis has forced enterprises to continually commit to product innovation and self-owned brands to enhance the added value of products. The industrial production model has also quietly changed. The export structure of products has shown a trend of “general trade” increasing year by year and “processing trade” decreasing year by year. By 2016, processing trade has accounted for nearly 90% of the initial period of reform and opening up, falling to only 29.04%. At present, China's toy industry not only leads the world in production technology, but also has the ability to innovate in products and cost-effectiveness in all aspects. It has already stood at the forefront of the world's advanced level. Many high-tech toy products are basically designed and produced by Chinese companies.

Another gratifying change is that with the improvement of the brand capacity of China's toy industry, the high-end consumer market for toys in China is no longer dominated by imported products. Attentive consumers may notice that at present, the big store toy shelves are often sold by Chinese “Ke Dolls” and “Barbie dolls”. Some consumers who want to buy Lego bricks may be afraid to browse products in the mall. Will buy the domestic "Bonbao building blocks", "Le Dr. building blocks", because regardless of product design, creativity or product quality, domestic brand toys and imported products have not been much more, but the price is much more economical. Many of the high-tech toy Chinese brands have already overturned, such as remote-controlled aircraft toys, which are basically the Chinese brand.

Looking forward to the global market in 2017, President Li Zhuoming expressed optimism. He analyzed to reporters: Europe and the United States are the largest consumer market for Chinese toys. According to analysis by the World Bank and other institutions, the European and American economies will continue to recover steadily in 2017, while the Asian economy is still driven by China. It will maintain a medium-to-high-speed development. Under the general favorable environment of the world economy, toys as children's entertainment and educational products, I believe that consumers' spending on purchasing toys will increase. On the other hand, this year Disney and DreamWorks will launch a number of cartoons such as "Beauty and the Beast" and "Galaxy Guard". The animation toy derivative market is not losing heat, that is, the factors that contributed to the prosperity of the toy market in 2016. It still exists this year. China has the world's most advanced toy production technology, and it does not face the fierce competition of Southeast Asian countries like the clothing, shoes, hats and other industries. Therefore, as long as enterprises actively innovate products, China's toy exports are expected to remain optimistic this year.

Source: Network

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