Toys and Games in China

COVID-19 impact on toys and games

COVID-19 has had a mixed impact on sales of traditional toys and games and video games in China. On the one hand, distribution through store-based retailers has been significantly disrupted by the nationwide lockdown, with shopping malls, non-grocery specialists and mixed retailers being forced to close during the quarantine period.

COVID-19 country impact

There was a strict lockdown in Hubei province in China from 23 January to 8 April, while other provinces imposed different social distancing policies and partial lockdowns. Movement in and out of the worst-hit provinces was banned until 4 February, with 14 days quarantine required for those moving between provinces.

China tightens regulations for online gaming in 2019 while STEAM products find favour in traditional toys and games

Online gaming remained the main focus of video games in 2019 with sales being dominated by in-app purchases made through mobile and online games. Mobile games saw explosive growth over the review period as adults and children alike embraced the wide range of titles available from leading companies such as Tencent and NetEase, with consumers being willing to invest in in-app purchase to enhance their enjoyment of the games and to improve their chances of success.

Pop Mart continues to surprise with dynamic results while mobile games is the key driver of sales in video games

In traditional toys and games, the big story in 2019 was the dynamic growth recorded by Pop Mart from Beijing PopMart Culture Creative Co Ltd. The brand was behind the rapid rise of the blind collectibles trend at the end of the review period, with consumers rushing to try and obtain limited editions and to complete their collections.

Mobile games, blind collectables and construction set to remain the three pillars of strength for toys and games in China

The measures taken to control COVID-19 are expected to have a negative impact on China’s economy and this is likely to have an influence on purchasing decisions over the forecast period. Despite this, traditional toys and games is expected to see stronger growth over the forecast period than was seen during the review period.

Files are delivered directly into your account within a few minutes of purchase.