It is Imperative to Increase The Added Value of Products Due to The Expansion of Consumer Demand

1. Development environment: dual promotion of economic policies, broad industry market space

In recent years, the growth rate of my country's toy industry has slowed down, but the overall trend has shown a steady growth. According to statistics, children aged 0-14 are an important consumer group in my country's toy industry. Therefore, the increase in the overall number of children aged 0-14 in China will promote the expansion of the market size of my country's toy industry. With the opening of the birth policy and the gradual implementation of the three-child incentive policy, the number of infants and children in my country will increase significantly, the future market of the toy industry will be broader, and the market size will also have a broad room for growth. In recent years, my country's economic situation has been stable and improving, residents' living standards have been continuously improved, per capita consumption expenditures have increased, and social consumption patterns have continued to upgrade. At present, my country's economic situation is developing well. In the future, the per capita disposable income and consumption expenditure will continue to grow. People's consumption demand will continue to increase, consumption patterns will also be upgraded and diversified, and the willingness to consume toys will also increase accordingly.

2. Development status: production and demand are increasing simultaneously, and online shopping has become the mainstream consumption mode in the toy market

With the popularity of the Internet, smart phones, and online transactions, people's consumption habits and consumption scenarios have changed. In recent years, my country's e-commerce industry has ushered in rapid development. Based on many advantages such as online shopping can save shopping time, avoid shopping fatigue, save shopping costs, have a wide range of products, and satisfy consumers to "shop around and choose the best". Online shopping has gradually become the mainstream consumption mode in my country's toy market. Coupled with the rapid rise of online platforms such as Douyin, Kuaishou, Xiaohongshu, Weibo, Mogujie, etc., more and more consumers are marketing grass toy products on online platforms. At the same time, affected by home isolation during the new crown epidemic, Further promote the online consumption of toy products. In addition, with the start of a new round of innovation and reconstruction in the domestic consumer market, the "Generation Z" represented by the post-90s and 00s has become the main consumer group, and they are more willing to purchase toys through convenient online shopping. Under this situation, the consumption proportion of online channels in my country's toy market has further increased.

3. Market structure: profit margins are shrinking, and market competition is becoming increasingly fierce

my country is a big toy production and export country, with a large number of toy production enterprises, and it is the main concentration of toy production in the world. However, my country has not yet become a toy-producing country, and domestically produced toys are mainly at the low-to-medium level. Compared with well-known international companies, there is a certain gap in R&D and design levels, and the brand awareness is not high. The current domestic toy manufacturers are small and scattered, with a low degree of centralization and organization. The market share of a single enterprise is low, and the toy brands lack international reputation and influence. Judging from the operating conditions of the toy business of key enterprises in the industry, the profit margins of the toy industry have shrunk in recent years due to factors such as repeated COVID-19 epidemics, complex international trade situations, rising raw materials and logistics costs for toy products, and increasing pressure on operating funds. Businesses face many challenges.

4. Development trend: domestic consumer demand for toys will continue to expand, and it is imperative to increase the added value of toy products

With the growth of my country's national economy and the improvement of residents' consumption level, the upgrading of social consumption and the improvement of concepts, the purchasing power of society is concentrated towards high value-added products with brand connotations, innovative ideas, high technology, diverse functions, and rich educational attributes. The market competition in the toy industry As the competition becomes more intense, some small and medium-sized traditional toy companies will face elimination, while relatively strong key companies urgently need to adjust their toy product structure, take market demand as the guide, integrate technological innovation elements into toy products, and optimize and upgrade their own brands , Increase the added value of toy products, thereby enhancing the competitiveness of my country's toy manufacturing industry, broadening the market for high-end toys, and gradually moving towards the forefront of the global toy industry.