Three Major Trends See The Future of The Toy Industry

First, the trend of intelligent toy products is the general trend.
With the rapid development of artificial intelligence technology, the functionality of toys is also constantly enriched. Compared with traditional toys, smart toys are more interactive and interesting. At the same time, the smart toy market is also "rolling" towards black technology. Many toy companies are trying to expand categories and increments by applying cutting-edge toy technologies, and strive to expand new growth points.

 

The category of smart toys has not only been loaded with more educational functions by play companies, but also improved profitability and industry competitiveness through various innovative technologies. In addition, in the long run, with the implementation of the double reduction policy, parents will pay more attention to the quality education of their children, and toys also carry parents' awareness that their children can obtain cognitive enlightenment and ability training, which is also a good thing for the toy industry Opportunity.

 

The second is to upgrade the demand for refined parenting, boosting the rapid growth of the educational toy track, and also bringing new business opportunities in disguise.
According to the report, the global educational toy market size will be US$68.81 billion in 2021, and it is estimated that it will maintain a compound annual growth rate of 9.83% in the future, and will increase to US$132.5 billion in 2028.

 

Toy companies have launched educational toys one after another, such as the building block products launched by Brook, to develop the creativity and hands-on ability of young children. Milu focuses on growth and advanced puzzles, which are in line with the law of children's intellectual development, increasing in order from simple to complicated, and cultivating the baby's logical thinking. The product also has an innovative selling point. While co-creating with many domestic and foreign artists, it also integrates cultural elements from different countries into the product, which continues to win the favor of consumers.

 

It is worth noting that when purchasing toys, the product's scientific and educational properties, material safety, and design sense are the top priorities for mother and baby consumers.

 

On the Douyin platform, the amount of content related to educational toys is far ahead of all children's toy categories, and smart dolls/dolls, building blocks, puzzles/boards, etc. are suitable for children of different ages and have "benefits". Toys with "intelligent" attributes are all in the top position in terms of play volume, which shows that "educational" has become the "just need" of users for children's toys.

 

 

Third, the competition in the IP licensing market is gradually heating up.
IP has already become a new popular "currency", and behind this is the confidence of toy giants to resist the cold winter. For example, with Disney's strong IP reserves, licensing once again ushered in new growth. In 2022, the annual sales of Disney licensed merchandise will be US$61.7 billion (annual sales of licensed merchandise will be US$56.2 billion in 2021).

 

Lego's IP products sell well and have high prices. According to reports, as of July 28, 2022, in Lego's Tmall official flagship store, there are 12 items with a monthly sales volume of more than 20,000, of which 7 are IP authorized products (58 %), there are 12 single products with a price of more than 3,000 yuan, including 8 IP licensed products (67%). Disney, Mattel, Bandai, Lego and other foreign toy brands are all beneficiaries of IP.

 

Disney, which holds many heavyweight IPs, has naturally become the focus of competition among players. Last year, Mattel regained the authorization to produce Disney Princess and Frozen dolls from Hasbro. This move further saved the decline in performance. In the category of plush toys, IP-licensed dolls are more likely to be favored by consumers. Many consumers who buy such toys are mostly loyal fans of IP.

 

The high premium and high returns brought about by product IP licensing also directly lead to the continuous expansion of the IP licensing market. According to the "2022 White Paper on the Development of China's Brand Licensing Industry" released by the China Toy and Baby Products Association, the total number of brand licensing companies in China is 632, a year-on-year increase of 7.8%, and 2,354 IPs have been authorized, a year-on-year increase of 7.9% . The increase in the number means that it is not an easy task for enterprises to quickly get out of the circle in a large number of IP cooperation.

 

In addition, due to the influence of cultural and national self-confidence and national trend factors, some new IPs are also given opportunities to be born, such as the launch of special products such as Bingdundun, Rongbao, Sanxingdui, and only this green, highlighting IP attributes and product differentiation At the same time as the core, it also launched the rapid development of the industry.