China’s toy industry e-commerce sales in the first quarter increased 8.8% to $1.3 billion in 2022 from the same period last year, and 27% for the same segment in 2020, according to the latest figures from The NDP group.
Looking at the sales of larger product categories in the quarter, which runs from January to March each year, Toys, Games & Puzzles and Plush Exploration & Others grew the most, rising 33% respectively. , 24% and 22%.
“The rapid growth of games and puzzles was primarily driven by puzzles for adults, games for children and preschool games, which could be explained by the lockdown,” said Stanley Kee, senior vice president and director general for the Asia-Pacific countries with the NDP. “Parents needed to use something to occupy their children, and many adults needed to find something to do for entertainment at home.”
In the Explorative & Other Toys category, Scientific Toys saw the strongest growth in the first quarter of 2022, increasing by 40% compared to the first quarter of 2021. According to the NPD, this was mainly driven by local Chinese brands, including Mi Jia, Science Can and Dream Start.
“There is no indication that China’s e-commerce growth will slow down anytime soon,” Kee added. “Which provides a source of sales opportunities for brands around the world looking to tap into the Chinese market.”
According to the NDP Chinese Consumer Sentiment Study, launched in January 2022, 85% of Chinese consumers responded positively when asked about their personal financial situation over the next six months, saying their spending would increase or stay the same. Similarly, when asked how their personal finances would affect their children’s spending, most parents said they expected their spending to increase or stay the same.
“China is the most populous nation in the world with the most online shoppers and retailers,” Kee explained. “This trend continues to climb, fueled by the country’s growing middle class as well as its ever-increasing internet access and smartphone penetration for consumers across the country.”