Page 306 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
been working closely with Chinese stakeholders to Still, overseas players need to tackle challenges
replace animal testing – which, for cosmetics alone, from local competitions. Statistics show that China
requires the use of an estimated 500,000 animals exported US$44.15 billion of toys in 2017, accounting
per year around the world – with more modern for more than 70 percent of total toys for sales in the
and predictive technologies. China’s cosmetics world (Xinhua, Chinese Toy).
testing laws require all foreign cosmetics products
to be tested on animals before they can be sold Online sales channels have recently witnessed a
in the country. In 2014, China began to soften its boom in China with the evolution of smartphones
stance, allowing domestic cosmetic brands to sell and other digital media. As the quality and features
products not for “special use” (make-up, skincare, of products can be discussed among shoppers, and
and fragrances) without the need to test them on prices can be compared on various platforms, the
animals, but only so long as they adhered to strict online sales channels represent one of the fastest
standards and a list of pre-approved and tested growing distribution channels for toys in China.
ingredients. This also applied to foreign cosmetics These online platforms provide an opportunity to
brand that chose to manufacture products in China international brands to open exclusive online stores
for sale locally. It could take years to implement a and directly sell products to Chinese consumers
complete shift away from cosmetics testing using without being physically present in the country.
animals (Rapp). Evolution of these online sales channels has made
various categories of products and brands easily
Toys accessible to consumers and catalyzed the growth
of the market (R&M, China Toys).
China’s multibillion U.S. dollar toy market
continues to have big growth potential thanks to
the great number of kid population, expanding
middle class, rising popularity of digital devices and
other factors, according to industry experts. China
posted about US$11 billion of traditional toy sales
in 2017 with games and puzzles, construction toys
and plush toys as the top three categories. As the
second largest toy market in the world, China has
236 million kids ranging from zero to 14 years old,
and 76 percent of the Chinese urban population
is expected to become middle class by 2022 with
higher disposable income and expense. The value of
Chinese education demand has increased given the
big size of the child population and governmental
regulation to improve preschool education. Chinese
kids are estimated to have US$58.25 billion of
pocket money, six times that of U.S. counterparts.
Collections are popular across all age groups with
cards and stickers, mini cars, figurines and dolls
as the top choices of collections. As many as 60
percent of Chinese children use mobile phones
with 34 percent of kids owning a mobile phone and
22 percent of Chinese children owning a tabloid.
Digital devices are mostly used for watching movies
and cartoon channels, listening to music and doing
schoolwork, with much higher usage in weekends.
306
been working closely with Chinese stakeholders to Still, overseas players need to tackle challenges
replace animal testing – which, for cosmetics alone, from local competitions. Statistics show that China
requires the use of an estimated 500,000 animals exported US$44.15 billion of toys in 2017, accounting
per year around the world – with more modern for more than 70 percent of total toys for sales in the
and predictive technologies. China’s cosmetics world (Xinhua, Chinese Toy).
testing laws require all foreign cosmetics products
to be tested on animals before they can be sold Online sales channels have recently witnessed a
in the country. In 2014, China began to soften its boom in China with the evolution of smartphones
stance, allowing domestic cosmetic brands to sell and other digital media. As the quality and features
products not for “special use” (make-up, skincare, of products can be discussed among shoppers, and
and fragrances) without the need to test them on prices can be compared on various platforms, the
animals, but only so long as they adhered to strict online sales channels represent one of the fastest
standards and a list of pre-approved and tested growing distribution channels for toys in China.
ingredients. This also applied to foreign cosmetics These online platforms provide an opportunity to
brand that chose to manufacture products in China international brands to open exclusive online stores
for sale locally. It could take years to implement a and directly sell products to Chinese consumers
complete shift away from cosmetics testing using without being physically present in the country.
animals (Rapp). Evolution of these online sales channels has made
various categories of products and brands easily
Toys accessible to consumers and catalyzed the growth
of the market (R&M, China Toys).
China’s multibillion U.S. dollar toy market
continues to have big growth potential thanks to
the great number of kid population, expanding
middle class, rising popularity of digital devices and
other factors, according to industry experts. China
posted about US$11 billion of traditional toy sales
in 2017 with games and puzzles, construction toys
and plush toys as the top three categories. As the
second largest toy market in the world, China has
236 million kids ranging from zero to 14 years old,
and 76 percent of the Chinese urban population
is expected to become middle class by 2022 with
higher disposable income and expense. The value of
Chinese education demand has increased given the
big size of the child population and governmental
regulation to improve preschool education. Chinese
kids are estimated to have US$58.25 billion of
pocket money, six times that of U.S. counterparts.
Collections are popular across all age groups with
cards and stickers, mini cars, figurines and dolls
as the top choices of collections. As many as 60
percent of Chinese children use mobile phones
with 34 percent of kids owning a mobile phone and
22 percent of Chinese children owning a tabloid.
Digital devices are mostly used for watching movies
and cartoon channels, listening to music and doing
schoolwork, with much higher usage in weekends.
306
