Chenghai Toy Industry: Three Did Not Expect

1.Market orders recover so quickly

Orders and merchants came unexpectedly quickly. This year, China Shantou (Chenghai) International Toys and Gifts Fair attracted more than 70,000 people to visit the exhibition within 3 days, and the on-site turnover of the exhibition was 3 billion yuan.

 

While the recovery of the toy industry is accelerating, more profound changes are also taking place. First of all, the purchase volume in the domestic market has increased significantly, while the proportion of foreign trade orders has steadily declined. In addition, the best-selling toy categories are also different from the past. According to the transaction data of a head toy company, the proportion of toy orders for young children has dropped from 90% to 65%; trendy toys mainly for adult consumers, also known as "fashion toys", accounted for 10% of the total. % increased to 35%.

 

The rapid recovery of the market and orders not only surprised the reporter, but also exceeded the expectations of many toy manufacturers. They said that in the past, when there were fewer orders, they would worry, and when there were too many orders, they would also worry, because many times the orders came in a hurry, but many links of toy production depended on labor, and the human factor was often unstable, resulting in insufficient production capacity. But with so many orders this year, many toy companies are not worried that they will not be able to deliver on time. One of the keys is the new changes in the toy production process.

2.Such a fine division of labor in the industry

In a newly completed factory in Chenghai this year, general-purpose building blocks are continuously "spit out" from the injection molding machine. Hong Jiawen, director of the production and manufacturing center of Godus Precision Technology Co., Ltd., said that now is the peak order period, and the daily output of the factory is 30 million to 40 million particles. Their size error is controlled below one-fifth of the diameter of a hair, and their colors will basically not deviate from continuous production of 100 batches. These building blocks will be provided to dozens of toy manufacturers in Chenghai, large and small.

 

The building block parts are made by a specialized factory. This model has never been thought of before. There is a leading toy company in the local area. The general manager Lin Zezhe is a native of Chenghai and is very familiar with the entire local toy industry. He told reporters that after more than 40 years of development, Chenghai has formed a complete toy industry cluster. Few toy factories are family businesses. The old habit is to have a business, or do it yourself or ask relatives and friends to do it. From toy production to carton packaging, they want to do everything by themselves in order to maximize profits. In fact, with the continuous upgrading of toy products, the requirements for product quality are getting higher and higher, and the requirements for the degree of specialization of production are also getting higher and higher.

 

In the past two years, new players appeared in the toy industry in Chenghai. Referring to the model of the chip industry, they established a foundry for building block manufacturing. The manufacturing process was all completed by the foundry. transferred to the foundry. The foundry does not focus on branding and quality, and can use most of the profits to improve the quality and efficiency of building block production. This change is actually introducing a highly subdivided and highly specialized production model into the traditional toy manufacturing industry. Du Kehong, executive vice president of the Toy Association of Chenghai District, Shantou City, said that in the past, 60% of the energy of the toy factory was used for manufacturing, 20% for research and development, and 20% for marketing. For manufacturing, toy factories divide 100% of their energy into two and 50% on R&D and marketing. The investment of energy and concentration of funds must run faster than the original old model.

 

From this point of view, similar to the toy industry in Chenghai, many industries may undergo changes like the chip industry, that is, from the original design, production to sales are completed by themselves, to the outsourcing of the production process, and then the foundry takes most of the income. Profits are invested in the construction of new production lines and new equipment, which makes the production efficiency of equipment and production lines higher and higher, and iterates at an extremely fast speed.

 

As a world-renowned "toy and gift capital", Chenghai's toy industry has grown by nearly 4,000 times in more than 40 years, and its annual output value has reached more than 46 billion. For the toy industry to reach a scale of 100 billion and achieve high-quality development, to really do a good job in this big article, not only must reshape the production process to improve manufacturing efficiency, but also rely on the full development of the service industry that is inseparable from the manufacturing industry. "Kung Fu is beyond poetry", which is also an important entry point for Chenghai to accelerate the upgrading of its manufacturing industry.

3.Upgrading of the manufacturing industry is beyond the manufacturing industry

In a local science and innovation center covering an area of about 50 acres, the reporter saw that each floor has a professional service around the toy industry, some are toy design, some are toy testing, and some are live e-commerce companies. He Zhiyuan is the head of a toy design company, a few years ago, seeing many local small and medium-sized toy enterprises themselves lack of design capabilities, he decided to set up a company that specializes in providing design solutions for these enterprises. In just a few years, it has grown from an initial studio of a few people to a design company with dozens of full-time designers. He said that the core of toy design is human creativity, and compared with the design department in the toy factory, professional design companies gather a group of people who like to design, good at design, designers together is easier to inspire each other and creativity, they can now provide hundreds of companies with nearly a thousand toy design solutions each year.

 

Currently in Chenghai, toy design, mold research and development, trade and logistics, e-commerce live, quality testing, supply chain management and other different types of supporting services reached tens of thousands of institutions. The reporter found that the distance between them and toy manufacturers, often no more than 500 meters, and some are even "left and right". In order to create a service industry ecology associated with toy manufacturing, the local government aims to improve the level and effectiveness of public services. In response to the painful point of urgent intellectual property protection in the process of upgrading the toy industry, the only rapid intellectual property rights defense center in the domestic toy industry has been set up in Chenghai to carry out rapid pre-application for design patents, search for design patents, and rapid defense of infringement disputes. Shantou (toys) intellectual property rights of the Director Chen smoothly told reporters, if through the ordinary channel and platform to apply for patents, almost three to five months, but through the fast maintenance center this fast channel, basically ten days to be able to get the patent authorization, which is very significant for the development and sales of the whole product.

 

Chenghai currently has more than 10,000 toy manufacturers, toy industry output value of more than 46 billion yuan last year, this figure and the global head of the toy company's annual revenue compared to the basic equivalent. This also reflects from another side of the status quo of small and scattered toy enterprises in Chenghai, Chenghai toys to be bigger and stronger, there is still a long way to go. The person in charge of a local domestic brand toy company told reporters that the real domestic private brand is a process, the process is to rely on time to precipitate, not to say that today's talk can be done, but he is very confident in this, I believe that through efforts, Chinese enterprises will be among the ranks of the world's leading toy enterprises.