Who Will Come Out on Top in The Toy Market?

Toy companies have both opportunities and risks ahead. According to the 2022 China Toy and Baby Products Industry Development White Paper, in 2021, the total retail sales of toys in the domestic market was 85.46 billion yuan, an increase of 9.6% over the previous year. Along with the steady growth, the domestic toy market has also shown some new changes.

In particular, the rise of the Z generation consumer group, toys are no longer exclusive to children, more and more big kids are willing to pay for love, toy products show a clear trend of diversification, all-age development.

In recent years, the tide play market has returned to rational consumption, but in the tide play market representative brands such as Bubble Mart, 52TOYS, Ruo Lai, looking for unicorns, created MOLLY, BOX series, Farmer Bob, Nanci Nanshi and a large number of IP favoured by consumers.

At the same time, the epidemic, double reduction policy also prompted parents to increasing demand for educational and educational toys, building blocks, STEAM toys, etc. are ushering in rapid development.

In the field of building blocks, LEGO has been entrenched in the industry for many years, local brands Enlightenment and Sambo Building Blocks continue to plough deeper, while Bruco Building Blocks has experimented with small micro-particles in addition to large particle building blocks, launching the ancient building construction series Taihe Temple. It is worth mentioning that mortise and tenon dovetails have also brought significant inspiration to the development of today's block toys, with many brands incorporating STEAM concepts while creating traditional Chinese block features, injecting new energy into the industry's development.

In addition, along with the rise of the block craze, many brands have also started to layout the block field, such as TOP TOY and Starlight Entertainment. At the same time, block brands are also receiving attention from capital, according to incomplete statistics, since 2020, Bruco has completed A-round and B-round financing, of which B-round financing reached 600 million yuan in April last year; in February this year, Senbao blocks completed several hundred million yuan A-round financing, with investors including Alibaba, Head to Head Fund and Hong Hui Capital. New consumer demand, as well as capital to help, the toy industry will also usher in a new stage of development.