[Targeting China's "second child" bonus, the world's largest toy store opened in China. However, it is not so easy to rely on China to overturn. 】
Recently, the 257-year-old British brand-name toy store Hamleys opened in Wangfujing, Beijing. The store covers an area of ​​10,700 square meters and has 5 floors. It is the largest single store in Hamres so far, and the 127th in the world, and the third branch in China since Nanjing and Xuzhou stores.
Looking at the domestic toy market in recent years, Hamres is just a microcosm of the global toy giants raising China.
In March of this year, LEGO's first authorized franchise store in mainland China opened in Shanghai, becoming the first of its plans to open more than 10 new stores in China in 2017.
Global toy giants target the Chinese market
Compared with the ingenuity of these toy giants in China, their performance this year is not satisfactory.
In the first half of 2017, published by Lego on September 5, the Group's overall revenue fell 5% year-on-year, and operating profit fell 6%. This is the first time that LEGO has experienced a decline in revenue in more than 10 years.
Also in September of this year, Toys R"Us, one of the world's largest toy retailers, declared bankruptcy in the US and Canada due to continued losses.
Intriguingly, Toys R Us issued a clarification statement to the media when it filed for bankruptcy protection in North America, saying it would continue to expand its operations in Asia, especially in China. At that time, Andre Javes, president of Toys R Us Asia Pacific, said that he currently operates more than 135 stores in China and will continue to add 22 new stores.
According to US media reports, Toys R Us is also actively seeking financing for its expanding Asian business, including listing on the Hong Kong Stock Exchange IPO.
The days of other toy giants are not good. According to CNN, Mattel, one of the world's largest toy companies, expects overall sales to fall by 6% in the fourth quarter of this year. This year, the company's share price has fallen 45%. Barbie and Fisher are also struggling.
The decline in the performance of traditional toy giants is not new. On the one hand, it is the impact from e-commerce. At present, more and more toy manufacturers choose to sell goods on e-commerce companies such as Amazon. Online shopping malls tend to sell at lower prices.
On the other hand, after the booming of electronic goods, children are more willing to choose to play video games on computers and mobile devices, causing the sales of electronic game consoles to “slow up†and the traditional toys to be cold.
It is worth noting that despite the overall lack of growth in the performance of major global toy giants, the Chinese market has grown strongly year after year. In the first half of this year, Lego’s revenue in the Chinese market achieved double-digit growth; Toys R Us continued to grow in the Asia Pacific market in the first quarter of this year; Mattel’s sales in the Asia Pacific region also increased by 16% in the most recent quarter.
In order to restore the trend, opening up the Chinese market has become their common choice.
Domestic toy market is highly competitive
Compared with the easing of consumer enthusiasm in Europe and the United States, the demand for toys by Chinese consumers, both in quantity and quality, is increasing. This is why international traditional toy giants have gained a lot in China.
Since the implementation of the comprehensive two-child policy, the birth population of the country has increased significantly. In 2016, the number of births in China increased by 1.91 million. After 80s and 90s, consumers formed a new generation of child-rearing families. The income level has improved and the family structure has become more refined and willing. Putting more income into children will make the toy and baby products market a new round of just-needed dividends.
According to the survey data released by China Toys and Baby Products Association and GfK China, the market size of toys, baby strollers, child safety seats and baby bottles in China will reach 60.7 billion yuan and 12.3 billion respectively. Yuan, 6.14 billion yuan, and 5.1 billion yuan, with growth rates of 9.2%, 15%, 35%, and 24.4%, respectively.
However, for the international toy giant, the fat in the Chinese market is not so easy to eat. The big market prospects also mean that competition will be more intense. In the competitiveness of the domestic toy market, the strength of local toy companies is also very strong, and does not lose the international toy giant.
Euromonitor data shows that the top five companies in the domestic toy business market share three companies belonging to China, namely Aofei Entertainment, Yao Ji, and Smart Creative. Among them, Aofei Entertainment ranks as the largest toy company in China with a market share of 5.3. %. The other two foreign companies are Lego and Mattel, accounting for about 3.5% and 2.2% respectively.
Benefiting from cultural resonance and social habits, local toys have unique development advantages. For example, the domestic brand “Korean Doll†and the Western “Barbie†of Mattel have become the main toy products of many supermarkets.
"Ke Doll" produced by Keer Toys Co., Ltd.
From the many IPs of Aofei Entertainment, you can see many cultural factors, such as "Tai Chi Mouse", "Kung Fu Cuisine", "100,000 Cold Jokes" and other IPs have deep roots with Chinese traditional culture.
It is worth noting that China is actually the world's largest toy producer and exporter. The latest statistics released by the Eurostat on the 5th of this month show that EU member states imported a total of nearly 7.2 billion euros (about 55.8 billion yuan) of toys last year, most of which were "made in China."
Foreign media pointed out that in the past ten years, during this period, China's share of the EU toy import market has remained at around 80%. In addition to the price advantage, the “Made in China†toy is constantly improving its quality, which is why it is becoming more and more popular.
In the next few years, perhaps not only will the competition in the domestic toy industry become more intense, but the toys of Chinese local companies can also take a share in the international market.
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