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Why China Is “The World’s Toy Factory”?

The toys produced by China Toy Factory are not only large in market size, but also have low after-sales costs for returns and exchanges. What’s even more surprising is that China is already the largest producer and exporter in this category, with a 75% global market share.

Who are the toys that have become a hit in the US?

Talking about the past year’s performance, a post-90s cross-border e-commerce seller confessed, “Last year we reached 15 million yuan in sales, and we conservatively estimate that we can double that this year.” And these products are all from China Toy Factory.

According to the latest charts of Amazon, 1688 and other global e-commerce platforms, during this year’s “June 1” period, a series of pressurized relief toys became cross-border e-commerce explosion, and this kind of new toys that European and American families are hot, 90% are produced by China Toy Factory.

According to the above-mentioned seller: “One pressure relief toy has accounted for about 70% of our sales, and recently it has risen by another 20%-30%”.

The “made in China” stress relieving toys have been on the rise since the end of last year, and have recently been in the top five of the list, occupying the Top 1 of Amazon’s Hot Toys list before “June 1”.

China Toy Factory
Silicone Pop Fidget Toys

The changing face of the toy industry

China’s toy industry began with ‘wooden’, ‘Muppet’ and ‘tin-plated’ products, and developed with ‘Rubik’s Cube’ and other educational products. “In the millennium, the industry transformed into electronic and intelligent products, and then relied on IPs to make its way towards intelligence.

When it comes to China Toy Factory, we have to mention Guangdong, China’s largest toy production base, accounting for 70% of the country’s toy output, while the Chenghai District in Guangdong is home to 80% of the country’s listed toy companies.

In 2008, due to the financial tsunami, toy factory in the Pearl River Delta closed down, and the largest toy production base at the time, Dongguan, sold millions of dollars of production equipment as scrap metal by the kilo to toy enterprises in Chenghai, which gave Chenghai District the opportunity to overtake the market.

China Toy Factory has a high quality of labour and unrivalled production efficiency

Although labour costs have increased in recent years, it is clear that China’s labour cost advantage has been maintained for a long time, and that Chinese industrial workers are extremely productive, hard-working and disciplined in a way that is unmatched by other countries. China still has between 200 million and 250 million rural people to move, a large proportion of whom will inevitably move to manufacturing.

India is the world’s second most populous country after China, and with its large and young population, it seems logical that it will be the next ‘factory of the world’. However, Indians generally live and work at a slow pace, and many workers have low self-esteem, low overall productivity, and far less ability to work hard and with less discipline than Chinese workers.

In recent years, the country has made a big push for ‘Make in India’. In order to develop the toy industry, the government introduced a ban on toy imports from China in 2009 and raised tariffs on toy imports this year in an attempt to erect trade barriers to Chinese toy imports and develop the country’s toy manufacturing industry. However, this has not been the case and the local toy industry has not seen much improvement.

The US toy company Basic Fun has been involved in the Chinese market for more than 30 years, with about 90 per cent of its production capacity in China and a deep partnership with Chinese manufacturers. The head of the company, Foreman, says that China has a strong workforce and efficient productivity that many countries struggle to match, and that his company relies heavily on. This also speaks to the sentiments of many European and American toy companies.

China Toy Factories
The changing face of the toy industry

China Toy Factorys’ production processes are technologically advanced

Last year, during the hearings on the US tariffs on US$300 billion of Chinese goods, a large number of American businessmen and entrepreneurs were full of praise for Made in China and Chinese workers. In their view, the best industrial workers in the world are almost all in China. “Chinese workers do their work like artists.” “Chinese workers work hard and are very intelligent, and many premium products come from China Toy Factoriesthat other countries simply can’t produce.”

Hasbro has also considered shifting its chain in recent years, yet after nearly 10 years of shifting, Hasbro still relies on China to produce about 60% of its products. Such as one of the iconic products – “Transformers” series, OEM product quality is high because the foundry used high-precision machine tools, mold accuracy is good. In addition to importing foreign machine tools, China has always strived to develop its own machine tools and moulds to improve quality, and has now reached a first-class level that other developing countries cannot compare with.

Affected by the epidemic, the toy industry, which is dominated by traditional foreign trade, has been hit in no small way. The younger generation of toy manufacturers in Chenghai have been optimistic about the rise of cross-border e-commerce channels.

China Toy Factories
China Toy Factory’ production processes are technologically advanced

China Toy Factorys’ cross-border outbound

A block manufacturer who has been engaged in foreign trade for many years and has sold his products to more than 100 countries around the world through cross-border e-commerce, said, “Adding e-commerce channels will allow him to understand the C-end customers better.”

A number of small and medium-sized manufacturers, on the other hand, see cross-border e-commerce as a way to build their brands in a lighter way. They use the familiar domestic traffic play, with toys abroad in the initial flow dividend, on Amazon to earn a lot of money. And then switched to an independent station as Amazon closed its shops in a big way.

In 2020, a team of 100 people + a custom production line will be able to collect annual profits ranging from $30 million to $60 million, and this is only a “small to medium” size.

China Toy Factories
China Toy Factories’ cross-border outbound

China Toy Factorys’ Market Sense

Since this year, the overseas toy market has changed from the previous years when smart toys were the only ones in the market and demand for traditional children’s toys has started to pick up, with orders returning to traditional sound, light and plastic toys.

The audience for toys has also begun to change, toys are no longer the preserve of children, more and more adults are willing to buy toys that suit them, and the boom in the pet market has also created a pet toy market.

The change can be seen in Amazon’s sales charts. The top seller is a seasonal toy for adults (Monterey Hammock), second is a sound and light educational toy, and third is a highly creative double-sided plush toy that tells your family your mood and whether you can be disturbed by the change in colour.

The toys that sold well were teaching related toys such as coloured pencils and writing pads, creative related toys such as clay and play sand, board games and cards for adults, and party water filled balloons that are enjoyed by adults and children alike in the summer.

High-end quality, innovative designs. In the toy industry, China Toy Factories is without a doubt the best choice for every retailer.

China Toy Factories
China Toy Factories’ Market Sense
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