Why are big players escaping in the 100 billion toy market?

This conclusion has yet to be verified by data, but the importance of children's consumption is becoming more and more prominent, especially the introduction of the two-child policy at the national policy level, which has greatly stimulated the children's consumer market.

The market related to children's consumption is very large. Whether it is the children's hairdressing, the parent-child restaurant, or the children's paradise that has been transformed into a child's consumption in recent years, it is the new darling of new consumption, and there is another market, but it is The industry that has been temporarily ignored is the toy market.

Almost every one of us will be exposed to doll toys when we were young. The doll machine that is emerging today is also a format of the toy market. What kind of market is the consumer market that every childhood will touch? This market is getting more and more attention in children's education. Will there be new opportunities when the wave of consumption upgrades comes?

1. A brief history of the Chinese toy industry

A brief history of the classification of toys

First of all, let's first think about what a toy is. I believe many people will have different definitions, such as dolls, building blocks, and even some people define the toys in adult stores as one of the toys. But in fact the toy has an official definition of the concept. Before we analyze any industry, we need to clarify its industry classification and industry definition attributes.

According to the National Toy Safety Technical Code, toys refer to all products and materials that are used by children under the age of 14. There are two clearly defined terms in this rule:

One is that the target group for toys is a 14-year-old child. Therefore, the potential core group in the toy market is children under the age of 14. Although the toy market has begun to explore some toys that adults can play in recent years, we still have to clearly understand that the core user base of the toy market is still children.

Second, the core definition of toys is still play-based. That is to say, although the toy will take into account the role of education and enlightenment, the core function is still play.

Next, let's look at the classification of toys. In the national economic industry classification, the toy industry stipulates in the National Economic Industry Classification that toy manufacturing belongs to the manufacturing industry, culture, education, beauty, sports and entertainment products manufacturing. ".

The manufacture of toys in the "Culture and Related Industries Classification" of the National Bureau of Statistics is the production of stationery. A broad sense of toys refers to everything that can be used to play with objects or utensils.

The concept of toys has been clarified from the official level. The following is a detailed description of the classification of toys. Because the requirements and attributes of the division are different, toys can be divided into many types:

According to the age of use, toys can be divided into: children's toys and adult toys; according to the differences in production materials, toys can be divided into: plastic toys, plush toys, cloth toys, wooden toys, metal toys; according to the main function, toys can Divided into: educational toys, mobile toys, electric toys, smart toys and so on.

Through the clear classification and definition above, we can infer the uniqueness and complexity of the toy industry:

a: From the upstream and downstream of the industrial chain, it is closely related to chemical industries such as plastics and metals. Its price and market volatility are greatly affected by bulk materials such as plastics and metals.

b: From the perspective of the target user group. Because the core user is a child, the product security complexity is higher than the general adult industry requirements.

C: Because the toy has both entertainment attributes. In addition to the design of the general product, it also contains a large number of game and human intellectual design elements, not a simple level of industrial design.

d: Since childhood is a peak period for children's education, growth, and intellectual development, toys should have educational attributes in addition to recreational characteristics. It plays an important role in promoting children's intellectual growth and enlightening children's minds. Therefore, it also has educational attributes.

e: In addition to the upstream supply of toys, toys have a strong correlation with animation, film, games and other industries because they must have cultural connotations.

Because the toy industry has the cultural industry attribute, it is a comprehensive industry with a high degree of positive correlation, which is a culture + consumer goods + education + manufacturing + retail maternal and child chain industry. It is highly complex and is a cross-industry integration product. .

Therefore, in terms of comprehensive evaluation, the toy industry is a diverse industry with entertainment attributes, culture and education. Its complexity is very high. The manufacturing process involves mold technology, cultural knowledge IP authorization, and game design. It is very different from the general consumer goods manufacturing industry, and it is precisely because of this that it will be a future industry with great imagination.

2. Global and Chinese toy market

Clearly defining the definition of the toy market and the target population, it is necessary to introduce a few facts about what you must know about the global toy market.

Why do I put the toy global toy market together with the Chinese toy market in the title, because the global toy market is increasingly influenced by the Chinese toy market.

What is surprising, however, is that the way Chinese toys affect the world's toy market depends on the production side to influence the world market, rather than relying on the consumer side to influence the market.

Therefore, the first fact we need to know here is that China is the world's largest toy producer and the world's largest toy exporter. In 2015, China's total toy exports reached 97.35 billion yuan, while the domestic retail market in the same period. It is about 65 billion.

Therefore, we can call China a big toy manufacturing country, but we can't call it a big toy country. Because of the current division of labor in the market, European and American countries are in an absolute leading position in both toy brand operations and toy channel sales.

And the toy manufacturing country China, at the other end of the smile curve, is mainly making money and basically the cost of OEM. Although local toy brands have consciously strengthened their brand-side investment and research and development in recent years, it is difficult to change the business model in which China's toy industry is dominated by export formats.

a. The status quo of the world toy market.

Similar to other consumer products, according to public information, as of 2013, the total retail sales of the global toy retail market was approximately US$845.18 billion, while the North American, Western European and Asian markets were basically the same, accounting for 25.86% and 22.75% of the global retail market, respectively. And 24.42%.

But in the most profitable brand segment, the world's largest top five toy brand companies are from developed countries. They are Mattel and Hasbro from the United States. Japan's Dome and Bandai, as well as Lego blocks from Denmark.

The accumulated sales of these five companies can account for one-fourth of the world toy market, and each of them has a world-renowned product in their hands. The following Dragon Cats show the hands of these toy giants through a table. Core products:

In addition to the toy market, the major players in these world markets will also enter the cultural industry such as movies, animation and games.

At present, the world toy market is showing many new features and trends:

1. Even in the wake of the financial crisis, the toy market in developed countries in Europe and America did not slow down rapidly. From here, we can analyze a new feature of the toy industry, that is, the toy industry is not affected by the macro economy, which is not the same as the impact of the diamond market in the previous Dragon Cat Jun, because the toy market is proportional to the overall per capita disposable income. Smaller, so the overall market did not show a downward trend in sales.

2. The toy market has strong growth momentum in emerging countries. Especially in China, Russia, Brazil, and the Middle East, the average growth rate is over 10%. This is because in the past, the average market consumption of the toy consumer market in developing countries was relatively low, so it showed a new trend of rapid growth.

3. Environmental protection is becoming a new trend in toy development. Countries around the world are constantly improving the safety and environmental standards of toy sites, which has higher requirements for domestic toy manufacturers.

4. Culturally authorized toys have gradually become the mainstream system of toys. In particular, a number of explosions affecting the world's animation culture IP, led to a new wave of toys and the growth of consumer goods.

b. Chinese toy market

Basically similar to other consumer goods, Chinese toys started in the mid-to-late 1980s, but in the beginning, they mainly relied on the OEM for large foreign brands. In the early 1990s, most domestic toy manufacturers lacked a clear and complete product strategy, mainly engaged in simple OEM production.

In this process, the toy production and export bases in Guangdong, Jiangsu, Zhejiang, and Shandong provinces were gradually formed based on the region, and Guangdong was the typical representative. In the process formed:

Guangdong mainly produces electric toys and plastic toys; Shandong produces video game toys and plush toys; Jiangsu produces plush toys and animal dolls; Zhejiang uses wooden toys as the main pattern.

Totoro Jun believes that in recent years, China's domestic toy market has also begun to realize that the traditional foundry model has limited profits as a downstream of the industrial chain, and has begun to consciously carry out some industrial changes:

1. Realizing the importance of cultural content and IP for brand premiums, we began to cut into the toy market from the upstream of the industry. The typical representative of this is the Austrian animation. More and more toy brand companies are aware of the need to cut through the upstream content, cultivate content fans, and then bring fans to the content to sell nearby toys.

In recent years, the local animation brands of Xihongyang and Big Big Wolf, Pigman and Guobao have been cut from the content side to attract a group of loyal small users, and then quickly cut into the surrounding products and become an animation brand through authorized means.

2. Strengthen the educational function of toys and let the toys begin to be closely integrated with education. In order to get rid of the status of the downstream chain of the industry chain, the brand must strengthen the operation of the content, combined with the application of STEAM teaching, to play the educational function of the toy to a greater extent, and cut into the educational products at an earlier time.

3. Pay more attention to vertical segmentation and positioning. In the past, Chinese local toy manufacturers pursued a large and comprehensive product to cover the entire product line. However, under the trend of the future, brand owners must pay more attention to the single product strategy and gain a leading market position in a few products. This trend can be seen in the development of such world toy manufacturers.

Finally, we introduce three current business models of China's toy industry:

1. OEM OEM is OEM production, OEM production, brand manufacturers do not directly produce products. Instead, it uses its core technology to design and develop new products and control sales channels. Product processing is commissioned by other manufacturers of similar products through contract ordering, and then the products are bought at low prices and branded. Trademark. China's toy companies mostly provide OEM services for internationally renowned toy brand manufacturers.

2. ODM and ODM refer to the manufacturing party entrusted by the purchaser. The manufacturer shall be responsible for the production method from the design to the production, and the purchaser shall be responsible for the production method of the sales. The purchaser usually authorizes the manufacturer to produce the product with the brand. OEM and ODM are the most common business models of domestic toy companies.

3. OBM OBM is the production of its own brand, which means that the manufacturer establishes its own brand, independently designs, purchases and produces, and develops the market with its own brand. At present, a few dominant enterprises in China adopt this business model, do not rely on a specific customer, independently develop new products according to market demand, and obtain high value-added effects such as brands. The profitability is far greater than the other two business models.

Toy industry player analysis and introduction

The front briefly introduces the domestic and foreign toy market. The following part of the Dragon Cat Jun scans the big players in the international toy market.

Hasbro: listed on the New York Stock Exchange, is one of the world's largest toy companies.

Since the 1980s, Hasbro has launched classic images and related toy products such as Transformers, Special Forces, Star Wars, Batman and Spiderman, which has set off a sales boom in the market.

In 2005, Hasbro's sales of only Star Wars products reached US$490 million, which contributed 16% of the total sales after the merger. In 2007, the sales revenue of Transformers products was US$480 million, accounting for the combined total of the year. 12.6% of sales revenue.

Bandai, Japan: Listed on the Tokyo Stock Exchange, it is the largest toy company in Japan.

Since the launch of the first animated image in 1963, Astro Boy, Bandai has produced a large number of classic anime images, and on this basis, many popular anime toy products have been launched.

Toys such as the Mobile Suit Gundam series, the dinosaur team series, the Iron Warrior series, Altman and other classic animation images have been sold for more than 20 years.

It is still very popular today. Among the total sales of Bandai's 4,266.4 billion yen in 2008, the revenue contribution rate of the four classic images of Mobile Suit Gundam, Team Series, Dragon Ball and Masked Superman has reached 22.19%.

LEGO Group: The Lego Group of Denmark was founded in 1932 and is the world's largest manufacturer of building block toys.

It aims to develop children's intelligence in the process of playing and learning, and is committed to the development and sales of plastic building blocks. At present, LEGO has a series of girls, creative building series, Star Wars series, hero factory series, toy mobilization and other products, which are sold to more than 130 countries around the world. In 2014, Lego's operating income was 28.758 billion Danish kronor, an increase of 12.59%.

LEGO has a strong R&D team. The designers come from many countries around the world and maintain strategic partnerships with many famous universities.

At first, the company was just a small family business. It was founded in 1932 by Ole Kirk Christiansen in Billund, Denmark.

Christiansen makes wooden utensils, including escalators and toys. His company has been making wooden toys until a fire destroyed his wooden toy warehouse in 1960. In 1934, he named the company "LEGO" (Lego), which is the abbreviation of the Danish word "leg godt", meaning "fun".

LEGO began making plastic toys in 1947 and was the first company in Denmark to use plastic injection molding machines. By 1951, plastic toys accounted for half of the company's exports of toys.

The company continued to improve the design between 1949 and 1958, but since 1958, the basic building blocks have remained unchanged. At present, LEGO bricks are popular all over the world, occupying markets in more than 130 countries. It is estimated that there are more than 300 million children with LEGO bricks. The average annual play height is 5 billion hours.

American Fisher Toys (hereinafter referred to as Fisher Toys) is a manufacturer of infant toys. The company is headquartered in East Aurora, New York.

Fisher Toys has been a wholly-owned subsidiary of Mattel Mattel since 1993. Fisher is the world's number one baby toy. It has the only laboratory in the toy industry and has a 36% market share in the US.

Tomei, the English name TAKARATOMY, Dome Group has 25 subsidiaries. Distributed in Japan, Southeast Asia, China and other places, the products are designed in Japan, produced in Asia and sold all over the world. It has a significant market share in the world toy market.

TAKARA TOMY is a well-known toy brand that was formally merged between TOMY (formerly Japan's third largest toy company) and TAKARA (formerly Japan's second largest toy company) in March 2006.

Finally, Totoro Jun will briefly analyze the current problems facing the Chinese toy industry and the core business model:

1. The first question is why, even if the Chinese toy industry has listed companies such as Aofei Animation and Converse, the Chinese toy market is still in a state of foreign brands. This is actually the core issue of this article today.

In the previous section, Totoro Jun focused on a problem, that is, we believe that the toy industry is not a single industry. It is a comprehensive industry that integrates culture, animation and media industries. In particular, if you want to obtain a high premium, you must have strong IP and animation, film and television content as support.

Due to the limited status of the domestic animation industry and the IP manufacturing capabilities of the local film and television industry, China's toy industry has to use a large number of foreign IP licensing status, and the channel system is still behind the European and American market layout, in key brands and channels. Behind the opponent. Leading foreign brands to occupy most of the market.

Therefore, for the local toy brand, it is easier to obtain a high premium from the content end, but the production cycle of the content is long, and the IP incubation time requires a huge fixed cost.

This is not something that local toy brands can admit. There are not many companies that can enter the upstream of the content industry like Aofei Animation. Because the time spent before and after is very long, the amount of funds needed and the number of talents are also high.

2. How to get rid of the inertia brought by foreign trade processing in the past. In fact, the land toy company is also trying hard to extend the content or game industry. However, due to the inertia of the business model and the stability of the foreign trade business, it is not too easy to turn to the local channel sales and brand building.

3. The future of the toy company must be content + brand company. The foundry manufacturing industry will end up with China's local human resources dividends. In the future, the traditional pure manufacturing industry will further shift to a cheaper region like Southeast Asia, and the entry into the upstream of the content through investment, mergers and acquisitions will become the mainstream format.

Toy industry consumption upgrade: How do we learn from the Japanese toy industry?

It is undeniable that one thing is our neighboring country, Japan. As a big country in the animation industry and toy industry, we are at the forefront of the world in the toy industry. As a Japanese consumer with similar cultural consumption habits, we are in this wave of children. In the bonus, how should we learn about Japan in the toy industry and complete the consumption upgrade of the toy industry? Totoro Jun believes that the following points are worth learning:

1. Further highlight the educational and family parenting attributes in toy design. In addition to the advantages of the animation IP license, the Japanese toy design is excellent in highlighting the user's needs and satisfying the characteristics of the family. For example, the toy will be designed to take care of the needs of the family pet, such as highlighting Parent-child interaction.

2. Don't give up on the demand for the adult market. As we have grown up from the generation of small toys, the emotional migration of adults to toys has not been neglected. The demand for toys for adults in the market is still relatively small, especially with the rise of the post-90s and 95s, this part of demand has begun to become a new toy market growth driving force.

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