Toys in all shapes and sizes.

China produces some 80% of the world's toys, but there is a dismal number of distribution channels on the Mainland for a market that's only just opening up.

That's all the more remarkable given that major international brands like Hasbro and Walt Disney have OEM facilities in China, with around 15,000 toy manufacturers in the major centres of Guangdong, Jiangsu and Fujian producing for foreign brands.

Local toymakers turned their eyes to the domestic market when export plummeted following the outbreak of the financial crisis - and only then came to realise the near absence of distribution.

Toys are mainly sold to small shops on the street through wholesale markets. They are cheap but their quality varies considerably. Department stores only sell expensive toys with high-end brands.

Toymakers reckon that China lacks a shopping channel with a price/performance ratio that offers a great shopping experience, so online shopping has moved into the void with an effective channel.

Over 80% of online shoppers and consumers are young people between the ages of 18 and 30. Among them, 83% regularly shop online. Adult educational toys are also hot favourites for online shoppers.

Taobao.com, one of Asia's largest B2C websites, grossed Rmb200 million in the sale of children's products during the week before International Children's Day on 1 June, double last year's turnover.

Letao.com, China's largest online toy retailer, also saw business booming before Children's Day, with sales of electronic gadgets like Rubik's Cube, DIY ice cream makers, Clocky alarm clocks and big-eyed doll recorders selling extremely well.

Parents find buying toys online highly convenient. They can easily find toys not available in department stores online.

The fact that online payments are now more widely accepted has given a strong boost to online toy sales.

Over 1,000 retailers of children's goods and toys are now using the online payment service of Alipay.com. Many of the large B2C shopping platforms recorded impressive growth around Children's Day. Even adult educational toys saw booming sales during the period.

from Jason Li, Beijing Office

(Image courtesy of Xinhua News Agency)