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Population dividend creates broad prospects for the children's toy industry

2024-03-11

The main user base of children's toys in our country is children under the age of 14. In recent years, due to the gradual shift from the one-child policy to the two child policy, the national level has clearly increased the encouragement of childbirth policies. From the analysis of historical population development data in our country, it is found that the parents of eligible childbearing families now happen to have grown up during the third baby boom in China, so the population suitable for childbirth happens to be at a peak period, The dual force will drive the explosive growth of the child population in the coming years. The children's toy market, as the mainstream market of the infant and toddler industry, will be the first to benefit from it, and the industry's development will enter a period of rapid development as a result.


In the past few years, the average growth rate of the domestic children's toy market has reached 10%, which is much higher than the global market growth rate by nearly three times. Driven by multiple factors such as the scale advantage of China's children's population, consumption level, and the updating and upgrading of parental education concepts, the huge potential for growth in the Chinese toy market in the future has shown domestic and foreign toy manufacturers huge industry opportunities. However, there are still significant differences in the ability of different brands of toys at home and abroad to seize market opportunities.


Some well-known national toy giants have developed mature profit models, and their main source of revenue has freed themselves from dependence on the production process. The logic of obtaining core profits is based on their brand appeal driven by their extremely advantageous market share, sales scale advantages, and of course, the advantages of sales channels established over the years, especially the added value of products brought by research and development innovation. All of these have led to international toy giants being in a dominant position in the industry chain, playing a leading role in the high-end toy market.



Compared to others, domestic toy manufacturers have long been mainly engaged in low-end processing and manufacturing, and even OEM manufacturing. The profits obtained from OEM production for international toy giants are very small and do not have a say in the industry chain. So if the domestic toy market wants to grow and strengthen, and control the dominant position in the industrial chain, it must make up its mind to increase investment in research and innovation. Strive to surpass international giants in terms of quality and creativity, and drive domestic children's toy brands to lead the industry trend.


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