While much attention is being paid to the reopening of businesses in the U.S., newly released data out of China could offer an indicator as to how consumer preferences and spending could play out in the remainder of the year.
In a new report from The NPD Group on China’s road to retail recovery, “reopening doesn’t mean a rebound.” A Consumer Sentiment Study conducted in May shows plans for decreased spending across a variety of categories. However, just as certain categories of toys have seen a boom in the U.S. fueled by stay-at-home orders, the Chinese toy market has experienced big growth despite some planned changes in future spending.
In a post-pandemic market, 59% of respondents said that they plan to spend about the same on toys. 16% said they expect to spend more while 24% said they plan to spend less.
While it was games, puzzles, and outdoor toys that attracted families during quarantine in the U.S., e-commerce data from NPD shows a massive eight-fold increase in sales for preschool learning toys in China during the first two months of the year. The report notes consumer appreciation for messaging regarding good hygiene and the importance of cleaning and sanitizing. The LEGO Group, which has been rapidly expanding in China over the past few years, offered digital classes for kids to learn how to play with LEGO bricks alongside messaging about good habits of cleanliness.
The full report can be viewed here.
