Going overseas has become an important development direction for many domestic toy companies
In recent years, with the intensification of competition in the domestic toy market, more and more companies have turned their attention to overseas markets. Data from the General Administration of Customs shows that in the first three quarters of 2023, China's toy exports reached US$48.32 billion, a year-on-year increase of 12.7%. This trend is particularly evident among the hot topics in the past 10 days. Many companies have accelerated their global layout through cross-border e-commerce and overseas factory building.
The following are hot data related to the toy industry going overseas in the past 10 days:
| Hot events | time | Involved in enterprises | Key data |
|---|---|---|---|
| Toy companies' overseas orders surge | 2023-11-05 | Aofei Entertainment, Star Entertainment | Amazon's toy sales increased by 35% month-on-month |
| Special toys for cross-border e-commerce platform | 2023-11-08 | AliExpress, Temu | Toy GMV of Double 11 preheating period exceeded US$200 million |
| Vietnam factory starts production | 2023-11-10 | Pop Mart | Annual production capacity is expected to increase to 50 million pieces |
| IP authorization to go overseas | 2023-11-12 | Tencent Animation | Signed toy licensees from five Southeast Asian countries |
1. Analysis of market driver factors
1.Policy support: The Ministry of Commerce and 17 other departments jointly issued the "Notice on Several Measures to Revitalize Automobile Circulation and Expand Automobile Consumption", which clearly supports cross-border e-commerce exports and gives priority to customs clearance for toy categories.
2.Cost Advantage: The labor cost of domestic toy manufacturing industry is about 1/3 of that of the European and American markets, and the land cost of Southeast Asian factories is 40%-60% lower than that of the Pearl River Delta region.
3.Requirements upgrade: The global educational toy market size is expected to reach US$22 billion in 2025, and Chinese manufacturers have technical accumulation in the field of STEM educational toys.
2. Typical corporate overseas model
| Company Name | Ways to go to sea | Key markets | Overseas revenue share in 2023 |
|---|---|---|---|
| Aofei Entertainment | Brand authorization + localized operation | Southeast Asia, Middle East | 42% |
| Star Entertainment | Cross-border e-commerce direct sales | North America, Europe | 58% |
| Pop Mart | Overseas direct store + IP joint name | Japan, South Korea, Singapore | 37% |
3. Challenges and countermeasures
1.Trade barriers: The new EU regulations require toy traceability labels, and it is recommended that enterprises establish ERP systems to achieve full-process traceability.
2.Cultural differences: A certain company's dinosaur model was removed from the Middle East due to color matching issues, and a local design team is needed.
3.Logistics bottleneck: Freight rates for South America routes fluctuate greatly, and overseas warehouse pre-stocking mode can be used to reduce risks.
4. Future development trends
Industry experts predict that toys will show three characteristics in 2024:The proportion of intelligent products has increased to 25%,Emerging market growth rate exceeds 30%,DTC mode becomes mainstream. A research report from a securities firm shows that the average price-to-earnings ratio of toy companies that are deploying overseas markets is 15-20 times higher than that of pure domestic sales companies.
It is worth noting that the number of readings on the topic of "national toys going overseas" that has been hotly discussed on social media in the past 10 days has exceeded 300 million times. Dunhuang cultural and creative joint building blocks have achieved a 500% fundraising target on the crowdfunding platform Kickstarter, confirming the premium space brought by cultural added value.
Overall, toy companies have been upgraded from simple production capacity output to"Product + IP + Service"comprehensive competitiveness competition. As the RCEP dividend continues to be released, this 200 billion export market is reshaping the global toy industry structure.
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