Where Is The Next Outlet for The Toy Industry?

As the younger generation becomes the main consumer of mothers and babies, they are slowly changing the market, and consumer demand presents a development trend of high quality, branding and individualization. As a result, more and more subdivided cutting-edge brands continue to emerge, such as building blocks, trendy toys, STEAM toys and other subdivided categories are also opportunities for latecomers.

Among them, building blocks have always been a popular category on major e-commerce platforms. According to relevant data, building blocks account for 16% of the entire toy market in China, with an output of about 13 billion, making it the category with the highest proportion in the toy market.

In the field of building blocks, although Lego has dominated the market for many years, "China Building Blocks" has also been actively seeking changes in the past two years, exploring new opportunities in the category, especially taking advantage of the trend of the country's boom and the boom in play, to create a young Trendy originals, IP co-branded building blocks, collection building blocks and other products that people love, many brands have developed their own unique styles and achieved growth against the trend.

The emerging sub-category of STEAM toys also deserves the attention of merchants. According to Nint Rentuo's data, combining data from the three major platforms of Tmall, Taobao, and JD.com, STEAM toys/teaching aids increased by 13.6% year-on-year.

Especially under the influence of the "double reduction" policy, parents prefer educational toys that can cultivate children's creativity and hands-on ability. The strong demand of consumers has spurred technology innovation companies and toy companies to step down and launch STEAM-related products. However, industry insiders believe that the category of STEAM toys/teaching aids and toys is currently only at the conceptual level, and that brands can use its "Dongfeng" to boost sales growth, and there is still a lot of room to be explored for its product structure and pricing.

On the whole, the trend of educational, IP, fun and intelligence in the toy market is remarkable. As the new generation of consumers has increasingly refined demands for toys, diversified, highly targeted, and high-safety products will have more competitive advantages, and it will be easier to stand out in the market.