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The Most Complete Analysis of the Status of the Toy Industry Chain

Views:191     Author:Site Editor     Publish Time: 2020-10-29      Origin:Site Inquire

The toy industry refers to the collection of all supporting enterprises that target toy products, including toy brand operations, toy R&D and design, toy manufacturing, toy logistics and transportation, toy retail and other sub-industries. There are two value chains in the toy industry, one is the toy industry value chain driven by the content industry; the other is the toy industry value chain driven by R&D and design.



1. Toy brand operation

Brand and IP are the core of toy companies, and the ability to manage brands and IP is the core competitiveness of the toy industry. Toy giants have already promoted the entire IP industry chain, such as wooden train sets and wooden princess castles: establishing core brands in the upstream, actively stocking IP, and cooperating with well-known brands; in the midstream, they dilute the production and manufacturing business and strive to enter the film and television animation manufacturing, and invest in TV channels to guide toy products; downstream channel and sales side of the company will give full play to the advantages of the upper and midstream linkages, play a large-scale effect, and actively deploy in emerging markets.

toy industry



2. Toy R&D and design

We must have a broad understanding of the complex world of toys, including handmade wooden toys, plastic blocks toys, shark bath toys, etc. An in-depth understanding of existing toys is the basis for us to do a good job in toy innovation design, especially American bricks toy in the foreign toy market. In fact, the basic functions of many classic wooden toys have not changed in the past 100 years. What designers need to do is to use new technologies, new materials and new crafts to upgrade and integrate the original toys through new artistic expressions.



3. Toy manufacturing

From the perspective of manufacturing, the upstream of the toy industry chain is mainly raw material suppliers, mainly including the plastics industry, the hardware industry, the electronic accessories industry and the packaging industry. Toy manufacturing companies need to sell products to consumers through distributors, so the downstream mainly includes retail, wholesale and other sales industries.



4. Toy logistics transportation

The current savage and rough loading and unloading phenomena in logistics are common and some wooden puzzle toys may be broken during transportation. In order to effectively cope with this phenomenon, manufacturers have two options: one is to strengthen the overall packaging material of the product to make the product more resistant to fall and pressure. The second is to change the logistics company as appropriate. But in practice, option one is more practical for the company. The goal is to find the optimal effect between packaging costs and logistics losses. The loss caused in the logistics process is not small, and their current logistics use their own designated company to ensure safe and convenient transportation.


toy industry wooden puzzle toys


5. Purchase channels

Downstream toy sales channels include wholesale channels, department store retail, supermarket stores, specialty stores, chain stores for mothers and babies, and e-commerce platforms. Traditional toy sales channels mainly include: one is a wholesale market; the other is a large department store, which mainly sells mid-to-high-end and international brand toys, such as the wooden play gym; and the third is a supermarket store, which is an important store for low-priced and medium-priced toys, such as small plastic horses. In recent years, specialty stores and franchise chains have been developing. 

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