2021 Global Toy Market Analysis

The positive and negative impact of the epidemic on the industry

The impact of the COVID-19 outbreak on the toy industry is complex.At the beginning of 2020, many toy factories in China stopped production due to epidemic prevention and isolation measures.And the industry has been severely disrupted.Fortunately, in the second quarter, as the epidemic eased, the production of enterprises gradually returned to normal.As the world's largest toy producer and exporter, China has basically operated normally.

Unexpectedly, due to the raging epidemic, many countries have implemented home isolation measures.Therefore, parents increase their children's consumption of toys.The market demand is strong, and the sales volume of online toys has increased significantly.This situation continues to this day.so, For the toy industry in 2021, opportunities and challenges coexist.

Chance: As the main toy consumption regions in the world, European and American countries have been troubled by the epidemic so far.The home isolation measures adopted by various countries have made outdoor toys, puzzles, building blocks and other products popular.In the United States, toy sales in the first three quarters of last year increased by 19% year-on-year.Toy sales on multiple e-commerce platforms increased by more than 50% year-on-year.

The development of cross-border e-commerce is particularly eye-catching.Guangdong is China's largest toy export base. In the first three quarters of 2020, the export of 'other trade' including cross-border e-commerce increased by 79.08% year-on-year.In the past, the export of toys was mainly composed of 'general trade' and 'processing trade'.

In recent years, 'other trade' has grown rapidly.By the third quarter of last year, the export volume of 'other trade' of Guangdong toys exceeded that of 'general trade', becoming the second main force of product export.This can be seen from the rapid development of cross-border e-commerce.This is expected to continue in 2021.

In terms of challenges: 'Today's world is undergoing major changes unseen in a century'.If the world economy recovers in 2021 as expected by major financial institutions, it is likely to cause raw material prices to continue to rise on top of last year's sharp rise.And trade protectionism will rise.What export enterprises should pay special attention to is that the central work conference in December last year proposed 'deepening the market-oriented reform of interest rates and exchange rates, and maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level'.'.

It is expected that the RMB will not appreciate rapidly against the US dollar in the short term last year, but given the global optimism towards China's economic development, it is believed that the RMB exchange rate will remain strong.In terms of production costs, the country clearly puts forward 'to increase the proportion of labor remuneration in the primary distribution, to improve the wage system, and to improve the reasonable wage growth mechanism'.

Therefore, labor costs may rise in the future.Under such an industrial economic background, enterprises must focus on strengthening product innovation and increasing product added value.

Industry development prospects are still bright

Since the current increase in demand in the toy market is largely due to the epidemic and home isolation measures, some people worry about whether the demand for the toy market will decline significantly in the future as the epidemic is brought under control.

Such concerns are not groundless.However, toys are different from daily necessities.They have the attributes of creative products, and the market demand is elastic.As long as enterprises can develop enough creative products, they can stimulate consumption and expand market capacity.Therefore, as long as enterprises pay close attention to the market and actively explore and innovate, the market demand can expand rapidly.

Early last year, Steve Pasher, chairman and CEO of the American Toy Association, said in an exclusive interview with Xinhua News Agency: As a major producer, exporter and consumer, China's important position in the global toy industry will not change due to the epidemic.to the COVID-19 pandemic