How many Chenghai toys have gone bankrupt? Real data and analysis of causes during the cold winter in the industry
Recently, the topic of "Chenghai toy company closures" has attracted widespread attention. As one of the world's largest toy production bases, the toy industry dynamics in Chenghai District, Guangdong affect the nerves of the entire industry. This article will combine hotspot data from the entire network in the past 10 days and reveal the true living conditions of Chenghai toy companies through structured analysis.
1. Statistics on bankruptcy of toy companies in Chenghai (latest in 2023)
| time range | Number of canceled/revoked enterprises | Proportion of industry | Main enterprise size |
|---|---|---|---|
| January-September 2023 | 217 | About 8.3% | Small and micro enterprises with annual revenue less than 5 million |
| Same period in 2022 | 184 | About 7.1% | Tongzuo |
| Last three months (2023Q3) | 89 homes | +18% month-on-month | Including some medium-sized foundries |
2. The core reasons behind the wave of bankruptcies
1.Foreign trade orders plummet: The inventory backlog in the European and American markets has led to a decrease in purchasing volume. From January to August 2023, Chenghai toy exports decreased by 23.7% year-on-year.
2.Costs continue to rise: The price of raw materials (plastic particles) has increased by 42% compared with before the epidemic, and the average annual increase in labor costs has reached 8%-10%.
3.Industrial transformation lags behind: About 65% of the bankrupt companies still rely on traditional OEM manufacturing and lack independent IP and brand building.
| Influencing factors | Degree of impact (5-point scale) | Typical business feedback |
|---|---|---|
| Decline in overseas demand | 4.8 | “Christmas order volume is only 60% of previous years” |
| Domestic competition intensifies | 4.2 | “Price war causes profits to fall below 5%” |
| Impact of cross-border e-commerce | 3.9 | “The traditional foreign trade model is unsustainable” |
3. Cases of industry self-rescue and transformation
1.Successful cases of IP transformation: Aofei Entertainment’s net profit bucked the trend and increased by 17% in the first half of 2023 through IP licensing such as “Super Wings”.
2.New channels for cross-border e-commerce: 380 companies have settled in Temu/SHEIN in Chenghai District, and 12 companies have a monthly GMV of over 10 million.
3.policy support measures: Local government rollouts include:
- Export credit insurance subsidy 30%
- High-tech enterprise recognition award of RMB 500,000
- Cross-border e-commerce logistics fee reduction and exemption
| Business type | survival rate | critical success factors |
|---|---|---|
| Enterprise with independent IP | 92% | Product premium ability |
| Pure OEM company | 68% | Customer Diversity |
| Cross-border e-commerce companies | 85% | Platform operation capabilities |
4. Expert opinions and industry outlook
Wang Jianjun, secretary-general of the China Toy Association, said: "The wave of bankruptcies is essentially an industry reshuffle. It is expected that the total number of toy companies in Chenghai will decrease by 15%-20% in the next two years, but the market share of leading companies will increase to more than 60%."
Li Yan, professor of industrial economics, pointed out: “The toy industry is undergoing a transformation from a ‘manufacturing base’ to a ‘brand cluster’. Surviving companies need to make breakthroughs in the following three aspects:
1. Establish a digital supply chain system
2. Develop new marketable categories (such as STEAM educational toys)
3. Lay out emerging markets (Southeast Asia, the Middle East)”
As of press time, the industrial and commercial registration in Chenghai District shows that there are 2,638 toy-related companies, a decrease of 13.6% from the peak in 2021. This industry winter is still continuing, but at the same time it is also giving birth to new industry opportunities.
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