Guangdong: a global leader in toy making

China is the world’s largest toy producer and exporter, with Guangdong Province standing as the country’s largest base for the production and export of toys. Today, more than 50 per cent of toys sold on the global market are produced in the province.

Thriving since the 1980s

Guangdong’s toy industry began to rapidly develop around the 1980s. At that time, toy industries from places such as Hong Kong and Taiwan capitalised on China’s reform and opening-up policies — which offered preferential investment incentives — and relocated to the Pearl River Delta region in Guangdong. This stimulated the rise of local private enterprises and led to the formation of an industrial cluster that continues to flourish today. In 2022, the export value of China’s traditional toy products alone (the seven major categories of products under Code 9503 in China’s Harmonised Commodity Description and Coding System, excluding products such as video game consoles) reached US$48.356bn, about 70 per cent of which were originated from Guangdong.

By 2023, Guangdong had more than 5,000 toy manufacturers of considerable size and an estimated workforce of over 1.5 million people. The high concentration of manufacturers and workers has resulted in the development of eight major toy manufacturing clusters in Shenzhen, Dongguan, Foshan, Guangzhou, Zhongshan and Zhuhai in the Pearl River Delta, as well as in Shantou and Jieyang in eastern Guangdong. Together, these clusters boast an annual output value of over RMB100bn. A number of famous domestic toy brands have emerged from this environment, including Alpha Group, ShiFeng, XingHui and Qman. In recent years, Dongguan and Shantou have further developed into renowned research, development and production bases for local and internationally popular toy products.

Currently, Guangdong’s toy manufacturing industry leads the world in terms of production technology, factory equipment and product development. Toy products featuring hi-tech elements, like drones, robots and various electronic, electric and smart-tech toys, are commonly produced in Guangdong. Many multinational toy corporations also commission Guangdong’s toy companies to manufacture and process their products.

Leading the world

Guangdong’s toy manufacturing industry is a worldwide frontrunner in scale, research and development advantage and manufacturing equipment. The industry holds several competitive edges. First, Guangdong excels in production technology, boasting advanced toy manufacturing skills and equipment. Second, the industry possesses a comprehensive industrial system, as Guangdong has a complete toy production chain. A large quantity of raw materials, fabrics, parts, components and moulds can be supplied to meet manufacturers’ production needs. Third, the industry manufactures a vast variety of high-quality toys.

Today, renowned toy brands and companies, with stringent quality requirements for their products, prefer to place production orders with toy companies in Guangdong. The province’s toys sell well in more than 200 countries and regions around the world. They have a market share of up to 80 per cent in economically developed countries and regions like the US and Europe, where environmental awareness and high toy quality standards prevail. Considering the present trajectory of the global toy industry, Guangdong’s toy manufacturing industry is poised to maintain its leading position worldwide.

Guangdong Toys Association

With the rise of the Guangdong toy industry in the 1980s, the Guangdong Toys Association was established in 1988. The association is a social organisation comprised of enterprises, institutions and social groups in Guangdong Province engaged in toy production, sales, research and development and education. It is one of the most powerful, cohesive and influential toy industry organisations in China, rated by the Department of Civil Affairs of Guangdong Province as a “5A-level social organisation” and an “outstanding social organisation”. Since its establishment, the association has been active in safeguarding industry rights and interests, reflecting reasonable demands and serving the industry. The association’s work includes:

• Acting as a “bridge and bond”: The secretariat has established a dedicated department for industry research and analysis to grasp industry developments and market dynamics at home and abroad in a timely fashion. This enables it to provide a variety of useful information to the government and enterprises. The secretariat also helps to articulate the demands of the industry and enterprises, and undertakes various research projects required by government departments, providing a basis for the government to effectively monitor industry operations and formulate policies.
• Defending the rights and interests of the industry and enterprises: The association actively intervenes in the handling of various industry matters and safeguards the rights and interests of the industry from an objective and fair standpoint. Concurrently, the association advocates for the enactment and implementation of policies to support businesses in response to industry changes and evolving circumstances. It provides co-ordination and consulting services for the industry and enterprises to promote the healthy development of the industry.
• Carrying out industry planning, technical training, marketing, brand building and other campaigns: The association organises a range of activities to enhance the industry’s innovation capability, promotes the transformation and upgrading of the industry in a comprehensive and multi-level manner and strives for sustainable development, all of which have been highly recognised and praised by enterprises.

Currently, the Guangdong Toys Association supports enterprises and promotes industry development through two channels:

• Organising key industry exhibitions: the Shenzhen International Toy and Education Fair, the Shenzhen International Stroller, Mother and Baby Product Fair, and the Shenzhen International Licensing and Licensed Product Fair. In addition, the Guangdong Toys Association is the largest agent for Guangdong’s toy enterprises at the HKTDC Hong Kong Toys and Games Fair and the HKTDC Hong Kong Baby Products Fair, both held annually in January. These exhibitions offer strong support for Guangdong’s toy enterprises to explore overseas markets.
• Building renowned media platforms in the industry: the Toy Industry monthly magazine, the ctoy.com.cn website and the new media matrix. The ctoy.com.cn website frequently hosts online events such as product displays, sourcing and business matching sessions, all crucial for promoting industry development.

The Guangdong Toys Association not only fosters close relationships with manufacturers and enterprises, serving as their home base, but has also established extensive connections with domestic and overseas toy and trade associations in places including Hong Kong, the US, Japan, India, Russia and Malaysia. These connections allow the association to stay abreast of industry and market developments, effectively serve its member enterprises and promote the industry’s healthy development.