Opportunities And Challenges for The Children's Toy Circuit in 2023

China's toys are export-oriented industries, and the operation of the industry is closely related to the prosperity of the world economy or not. Due to the epidemic, the toy consumption market in 2022 is full of unstable and uncertain factors. In fact, although the epidemic to a certain extent to promote the toy consumption, but the production and operation of enterprises also caused a lot of negative impact, is a double-edged sword, there are advantages and disadvantages.

Opportunities and challenges in 2023

One of the favorable situation: the world economy is expected to improve favorable toy consumption. Although the global epidemic is still severe, but the vaccine has been widely vaccinated, many countries manufacturing industry has resumed work and production, the world economy is expected to gradually return to normal in 2023. According to the IMF (International Monetary Fund) expects the world economy to grow steadily this year. Experts are therefore optimistic estimates: the global economic growth in 2023 is quite pleasing. The world economic recovery growth, will make a steady increase in household income, favorable toy consumption, thus helping China's toy exports to the world.

Favorable situation two: the epidemic has led to the expansion of the toy consumer groups. The ups and downs of the epidemic makes people home time increase, not only to stimulate all kinds of parent-child toys, intellectual toys, stress-relieving toys, especially the consumption of game consoles, but also prompted more big children to join. According to a well-known international market research agency, the average level of consumption of toys for older children is several times that of other children's toys. 2022 domestic market blind box toys and other trendy play products are all the rage, many of which are purchased by older children, and the formation of a booming trendy play consumption. In Europe's largest consumer of toys in the United Kingdom, big kids toys sales increased significantly year-on-year. In response to this situation, many toy brand companies have developed and launched related products, which is very favorable toy consumer market to maintain positive growth.

One of the downsides: tightening supply chains and inflation will keep production costs high for companies. "2021 opened with the outbreak of the new crown pneumonia, but 2022 ended with a price spike", a popular joke, which roughly reflects the situation of the outbreak of the epidemic after the production costs of enterprises continue to rise. During the epidemic, countries to stimulate the economy to issue a large number of currency, so that prices generally show a rising trend, although from the fourth quarter of last year, plastic chemical and other commodity prices have fallen, but this year, as enterprises in various countries have resumed work and production, the demand for raw materials is expected to continue to rise, prices are bullish, so that our enterprises suffer from "supply shock" The central economic work conference pointed out that the operating pressure.

The second adverse factor: the international market competition will continue to increase. Last year, China's toy exports and growth rate to set new records, one of the important factors, is that China took the lead in controlling the epidemic, and most of the toy factories in Southeast Asian countries shut down, international orders only to our enterprises. This year, Vietnam and other countries to resume normal production of toy manufacturing, our enterprises will inevitably be diverted from the international orders. In addition, due to the toy industry entry threshold is not high, India and other developing countries clearly support the development of the toy industry to solve problems such as employment; after the occurrence of trade friction between China and the United States, some toy brand companies to avoid the possible tariffs, but also intentionally divert orders from Chinese enterprises, and actively support the development of toy manufacturing in Vietnam and other countries. All kinds of situations, making China's toy industry will face more competitive pressure in the future.

But the huge population size of children aged 0-14 in China has brewed a huge potential market demand, the rapid rise of the children's economy has become a hot track of consumption. 80% of family spending on children accounts for 30%-50% of family spending, on the one hand, parents who spend money, on the other hand, the growing market demand. At present, China's children's consumption market size is close to 4.5 trillion yuan, including children's entertainment consumption market size exceeded 460 billion yuan. So the development of children's educational toys in the future is still promising, seize the opportunity to face the challenge is what we want to do!