1. Toys and Games Market China November 2010

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Executive SummaryToys and games market in China is pegged at USD A bn in 20-- and is estimated to grow at B% Toys and games are being viewed as instruments for the all round development of a child Market Manufacturers have been innovative and specialize in creating toys with new features and designChinese toy manufacturers are typically OEM, producing toys for foreign brands, so most of the toys are exported to other parts of the world Toy ExportDrivers:PLE China is the largest toy exporter globally accounting for C% of world exports for toys Guangdong is China's largest toy-manufacturing center Challenges: Drivers & Challenges Online purchase Low labor wagesSAM Rising middle income group Highly efficient industrial clustering A tool for the development of children Low quality of Chinese products Appreciating currency Rising crude oil prices Fundamental problems Inefficient health, safety and environment regulationGovernmentChina had suffered major export recalls in 20--, after which the Chinese government set certain standards and certifications for the toys manufactured in ChinaRegulation Government expanded the nations compulsory certification system to include toys and gamesMajor Players Competition Company 1 Company 2 Company 3TOYS AND GAMES MARKET IN CHINA 2010.PPT 2 3. Market Introduction Overview Export Scenario Drivers & Challenges Government Regulation CompetitionTOYS AND GAMES MARKET IN CHINA 2010.PPT 3 4. Demand for toys and games in China is expected to grow rapidly China Toys and Games OverviewMarket Size and Growth Toys and games are being viewed as instruments forUSD bn the all round development of a child 30Ef% Electronic and educational toys have become a D20 dominant segment in the market and is followed byC plastic board games, puzzles and stuffed toysB10A Parents are increasingly willing to pay more for a toy which LE has an educational purpose rather than for entertainment0 Chinas culture acknowledges toys as a tool to develop20--20--20--e20--e 20--e intelligence Chinese manufacturers have been innovative and MP This segment has been growing at nearly G% every yearMarket SegmentationSA specialize in creating toys with new features and Toys Type 1Toys type 2 design Toy and games factories have become an important part of the economic boom that has providedToys type 5 employment to a large section in ChinaToys type 4Toys type 3 TOYS AND GAMES MARKET IN CHINA 2010.PPT4 5. China leads the global exports of toys and games primarily due to cost effective operations Export Overview Chinese toy manufacturers are typically OEMs, producing toys for foreign brands, so most of the toys are exported to other parts of the world LE This makes Chinas toy and games market an export oriented industry which accounts for A% of the total exports to the world The industry has also been affected by the recession but as the economies recover worldwide, export of toys is expected to improve from 20-- MP Demand from emerging markets has increased graduallySA In 20--, export to ASEAN increased by B% and there is an C% increase in exports to the Middle East Chinas own brand exports has risen to D% in 20--Export of Toys by Province Province 5Toys export market Province 4has grown by E% Province 3from Month 20-- to Month 20-- Province 2 Province 1Month 20--Month 20-- TOYS AND GAMES MARKET IN CHINA 2010.PPT5 6. Drivers and Challenges Summary Drivers Rising middle income groupChallenges Low quality of Chinese products Highly efficient industrial clustering Appreciating currency A tool for the development of children Rising crude oil prices Online purchase Fundamental problemsLow labor wagesInefficient health, safety and environment regulationTOYS AND GAMES MARKET IN CHINA 2010.PPT6 7. Players are required to obtain product certification through Chinas Compulsory Certification process Government regulation China had suffered major export recalls in 20--, after which the Chinese government set certain standards to be maintained and forwarded some compulsory certifications for the toys and games manufactured in China Government expanded the nations ABC System to include toys and gamesLEIt requires manufacturers to apply for ABC Certification from the nations certification and accreditation administration PSince 20--, toys manufactures have had to apply to any of the three certification agencies nominated by nation's Body D to certify theirproducts exported to other countries or imported into China S M Since 20--, no toy has been allowed to leave the factories without CCC certificates either to be sold domestically orAThis will help in securing the increasing international pressure for environmental protection as well as further expand exportsSafety Standards for ToysToys Types Safety Standards Bicycles for young children GB ----- Safety Requirements for Bicycles for Young Children Child tricycles GB ----- Safety Requirements for Child Tricycles Wheeled child conveyances GB ----- Safety Requirements for Wheeled Child Conveyances Baby walking frames GB ----- Safety Requirements for Baby Walking Frames Toy bicycles, Electrically driven ride-on vehicles for children, Doll Toys, Electric Toys, Metal Toys, Plastics Toys, Projectile Toys and GB ----- National Safety Technical Code for Toys Other toy vehicle GB ----- Electric toys - Safety Electric Toys(excluding clause 20 Radiation, toxicity and similar hazards) TOYS AND GAMES MARKET IN CHINA 2010.PPT7 8. Major Players in the Market (1/10)Company Snapshot: Company 1 Corporate Information Financial Performance USD mnTotal Revenue USD mn HeadquartersProvince A100Net Profit20 Product TypeProduct 1, Product 28015 60 10 Founded 19--40 205 Key PeoplePerson X 00 E20--20-- 20--20--Business Highlights PL It operates in the animation industry and conducts 2D and 3D cartoon planning and production S M It also involves in comic magazine, book publishing business as well as engages in the manufacture and sale of toysA In 20--, it was given the honor of the Chinese Famous Brand and the Chinese Top Brand Product by the government, which was the first and only one given to domestic toy manufacturers Its products include model cars, licensing toys, cartoon characters, other related products, remote control toys and mechanical toys It sells toys under the brand name of brand B and brand CTOYS AND GAMES MARKET IN CHINA 2010.PPT8 9. Thank you for the attention The Toys and Games Market - China report is part of Netscribes Consumer Goods Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 22 4098 7530 Phone: +91 33 4064 6214 E-Mail:gagan.uppal@netscribes.com E-Mail:gaurav.kumar@netscribes.com About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The companys expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfill clients profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.TOYS AND GAMES MARKET IN CHINA 2010.PPT 9