Guangdong's toy industry remains strong amid global market recession

Amidst the doldrums of the global toy market, the upcoming Guangzhou International Toy and Education Fair is expected to help Guangdong toy makers fortify their foothold in and outside China. The event, set for April 8-10, will feature over 1,100 exhibitors and an estimated 60,000+ visitors from around the world, the organizer said.

The Guangzhou International Stroller and Baby Product Fair will also be held at the same venue as a supplement to the toy event.

"Both the United States and Europe, the world's two key toy markets, are at a low and are unlikely to bottom out in the foreseeable future," noted Li Zhuoming, chairman of the Guangdong Toy Association.

"This will force toy makers around the world to turn to China, the world's second largest toy market, for new business opportunities, resulting in escalated competition in the domestic market," he explained.

Due to the bankruptcy of Toys "R" Us, once an internationally leading toy retailer, and the trade war between the United States and China, among other reason, toy sales around the world posted just US$87.5 billion in 2018, falling 2 percent from 2017, he said.

China's toy makers, based mostly in Guangdong, will face equal, if not greater pressure to tap into the global market, particularly traditional markets in the United States and Europe, he continued.

Nevertheless, he said, Guangdong's toy makers still have some trump cards, citing their branding, cost-effectiveness and innovativeness as their core strengths.

The chairman said that organizers have tried to maximize exhibition space and will sponsor a series of seminars highlighting educational toys such as building blocks, which are believed to be good for the brain development of children, and smart toys, which are believed to help children learn.

"Building block toys make use of STEAM (science, technology, engineering, art, and mathematics) concepts, said Zhan Kada, general manager of Guangdong Qman Culture Communication CO Ltd.

"Benefiting from the importance Chinese consumers attaching to their children as well as the growing popularity of STEAM, Qman has been able to achieve a compound growth rate of over 30 percent year-on-year over the past five years," disclosed the general manager.

"Our branding endeavors have also paid off," said Xu Xing, brand director of Qman, adding that Qman has become the second most prominent building block brand in China and some European markets, with Lego being number one.

During the previous toy fair last April, Qman introduced 60 new building block toys to visitors while unveiling its new logo, earning a positive response from customers, according to Xu.

As the nation's long-time toy manufacturing and export center, Guangdong achieved $14.96 billion in toy sales in 2018, an increase of 14.67 percent over 2017. This accounted for 59.62 percent of the nation's total toy sales, according to customs statistics.

The province imported $457 million in toys last year, about the same as in 2017, representing 42.3 percent of the nation's total toy imports.