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.

Cuteness, companionship, and comfort are the unique labels of plush toys. In the stress-intensive adult world, plush toys are no longer exclusive to children. More and more young consumers have become the main consumers of plush toys. Young consumers Those looking for a more comfortable touch, a more trendy design, more diverse IP and social gameplay. According to Amazon data, plush toys dominate the growth of the toy category, and its sales revenue will increase by 32% from the beginning of 2022 to November. In addition, more interactive and interesting smart toys are also worthy of market attention.

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.

It is worth noting that new products are the main driving force driving brand growth. The data shows that in 2022, there will be more than 70 "ten million new products" in trendy toys. Among them, the number of new children's toys will increase by more than 150% year-on-year, and the number of trendy toys will increase by more than 300% year-on-year; During the period, the first launch broke one million; the 2022 financial report of the Lego Group also showed that 48% of the products sold last year were new products.

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.