Toy Manufacturing Growth in China
Playthings Staff -- Gifts and Dec, 10/25/2012 6:26:18 AM
SAN FRANCISCO - The toy manufacturing industry in China is not slowing down, particularly as disposable incomes and toy sales continue to increase within the country. In fact, the industry is expected to generate $25.7 billion this year, according to research by IBISWorld.
In China, domestic revenue has continued to grow throughout the past five years at an annual rate of approximately 8.8 percent, and as disposable incomes continue to increase so do the number of toys purchased.
At present, China manufactures more than 70 percent of the world's toys. The industry is made up of a large number of small and medium-scale participants, with no one firm dominating the industry, according to the report. Most export-oriented toy manufacturers are original equipment manufacturers (OEM) for major global players like Mattel, and although exports have increased, its proportion of industry revenue has declined.
The current average per capita expenditure on toys for children under 14 years old is much lower than the global average, according to IBISWorld. As the share of income spent on children's products increases, domestic enterprises will find ways to satisfy this demand. Chinese manufacturers with their own brands will develop products that are distinctly Chinese in character, tapping into growing local and foreign markets whose needs are not being met.
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