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High Value-added Products are the Trend of Increasing the Profit of Toy Products in the Future
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High Value-added Products are the Trend of Increasing the Profit of Toy Products in the Future

Chinese toy enterprises are affected by the rising cost of traditional manufacturing industry and the serious homogeneity of toy products. In this case, the overall gross profit of toy products continues to decline and most toy enterprises gradually shift their resources to relatively high value-added products such as electric remote control toys.

As the largest toy producer and the second largest toy seller in the world, China has a large number of toy manufacturers, but nearly 80% of toy export enterprises are enterprises with small and medium size, owning uneven level of operation and management and lacking research and development capabilities.

In the toy area of the yiwu mart toys factory, most customers and tourists have surrendered their sight to the products such as some intelligent electric toy pets, various light-emitting toys, highly simulated models and so on. Apart from the popular blockbuster, the current popular animation IP toys attract more attention from buyers and consumers.

"The combination of animation IP and toy products is a way for toy enterprises to maintain long-term competitiveness." The head of Shanghai Toy Association said.

According to the Chinese and foreign toy Media Center released in 2017, China's domestic hot toy products show that animation IP class, science and education class, virtual (VR, AR) entity combination, building blocks and children's machinery class become the hot type of Chinese toy products.

Not only at domestic, but also abroad is spreading this trend. In 2017, the net profits of two toy giants, Hanzibao and Mattel, all showed negative growth, and the business income of Mattel declined sharply. SPIN MASTER, a new company engaged in intelligent toys, has considerable revenue and net profit. It can be seen that the foreign toy market is also developing towards the direction of new toys such as intellectualization. High value-added, differentiated and intelligent toy products are the trend of future profit margin promotion and market development.

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