The children's interactive experience zone at a major Chaoyang District shopping mall in Beijing was alive with energy. Kids clustered around various stations, eagerly testing out smart toys, while parents listened closely to staff explaining product features and safety standards.

"Today's children's products combine fun with smart educational technology," remarked one parent trying a picture book projector. "They really let kids learn through play."

"To better serve children's diverse needs," said mall manager surnamed Liu, "we've been upgrading our product mix and customer experience. Our new educational interactive products have been a hit with both children and their parents."

At the checkout counter, 7-year-old Qiqi gleefully wheeled her shopping cart to a stop, carefully unloading each prized selection onto the conveyor belt. Her haul showcased thoughtful independence: an eco-friendly building block set, a programmable robot and an interactive storybook enhanced by augmented reality (AR).

Her mother smiled and said, "As parents, we are happy to pay for hi-tech, safe and environmentally friendly toys for our kids."

Demand upgraded 

As millennials and Gen Zs become the main parenting demographic, consumption of children's products is no longer confined to clothing and toys but has extended into fields such as educational, cultural, travel and parent-child experiences. The 2024 China Consumer Outlook, a report released by leading market research firm Nielsen IQ in 2024, revealed that children's education had become one of the areas Chinese consumers are most willing to invest in. Consumption formats like parent-child study tours and children's education camps, in particular, have gained greater favor among young parents.

"The children's product market is becoming more diversified and intelligent," said Dong Chao, Director of the Circulation and Consumption Research Institute at the Chinese Academy of International Trade and Economic Cooperation.

"With rising household incomes, the focus of parental spending has gradually shifted from basic necessities to service-oriented domains like education, entertainment and healthcare," Dong added. A growing array of learning apps, online platforms and multilingual e-book subscriptions now cater to children's developmental needs at every age.

In the United States, platforms like ABCmouse and Khan Academy Kids have gained tens of millions of family subscribers through gamified lessons and age-adaptive curricula.

Meanwhile, Europe has seen rapid growth in the number of digital libraries offering interactive reading and multilingual learning tools—helping children engage with global cultures from their earliest years. Increasingly, these content providers collaborate with schools and publishers to build richer, safer and more inclusive digital ecosystems.

The green light 

Green consumption and sustainable concepts are another rapid shift in household purchasing decisions. When you step into shopping malls or log onto e-commerce platforms, labels such as "eco-friendly," "non-toxic" or "biodegradable" immediately catch the eye.

In Dong's view, as policy guidance, corporate transformation and family values continue to evolve, this green consumption trend on the children's market will become more prominent. "Environmental responsibility is no longer confined to adults but has become an intrinsic part of childhood development," Dong stressed.

Renowned Chinese children's brand Goodbaby has advanced its use of eco-materials in recent years, incorporating renewable and biodegradable materials into strollers and apparel, while adopting energy-saving and emission-reduction technologies to lower its carbon footprint. Children's clothing brand Balabala has launched its "Eco-Childrenswear" line featuring organic cotton and eco-friendly dyes to minimize the negative impact on children's skin and the environment, while reducing plastic usage in packaging to promote recyclability. Meanwhile, popular infant and children's wear label YeeHoO uses global organic textile standard fabrics for its clothing and applies enhanced wastewater and waste management protocols throughout its manufacturing process.

Moving forward, the establishment of green supply chains, implementation of full product lifecycle design, and enhanced carbon footprint transparency will serve as key metrics for evaluating corporate sustainability performance. "For Chinese children's brands," Dong emphasized, "embracing the dual-drive strategy of 'environmental protection plus good quality' presents great potential to cultivate a more proactive and responsible brand image in global markets."

Factory to frontrunner 

China, once known primarily as the "world's factory" for contract manufacturing, is now seeing its domestic brands gain international presence.

Children's products industry in China long operated primarily through original equipment manufacturing (OEM), providing cost-efficient production for major Western and Japanese brands. However, this OEM-centric development model relegated Chinese companies to a subordinate position in the value chain, limiting their core competitiveness and pricing power, as Dong observed.

Stimulated by maturing domestic markets with upgraded consumption demands, alongside rising international standards for product design and quality, forward-looking enterprises have pivoted toward proprietary brand operations. This strategic move propels product innovation and brand building while expanding their footprint into diverse markets.

According to data from the China Toy and Juvenile Products Association (CTJPA), by the end of 2024, over 300 of China's children's products enterprises had initiated overseas brand expansion, with many achieving breakthroughs across the Southeast Asian, Middle Eastern and European markets.

During this process, innovation has become the crucial driving force. Diverging from the historical pattern that prioritized manufacturing over design, an increasing number of enterprises now focus on product originality and cultural resonance, conducting personalized research and development tailored to regional user habits.

To comply with international safety regulations, manufacturers align their materials, craftsmanship and testing protocols with global standards such as the European Union's Conformité Européenne Marking, a mandatory certification indicating that a product meets health, safety and environmental standards for sale in the European Economic Area, and the U.S. American Society for Testing and Materials standards, substantially enhancing product competitiveness.

Furthermore, widespread adoption of digital tools accelerates product iteration. Through data-driven analysis of consumer needs, enterprises rapidly optimize product features while compressing research and development (R&D)-to-market cycles, establishing competitive advantages for brand building abroad.

According to an official with the CTJPA, children's product enterprises in China are now evolving from a singular export-oriented approach toward a new phase of omni-channel global expansion that integrates online and offline strategies. Beyond leveraging established cross-border e-commerce platforms like Amazon, Lazada and Shopee, many brands are establishing localized sales networks, participating in international trade fairs, and partnering with local educational institutions. 

While children's products in China have achieved initial success in international markets, the industry still faces several hurdles. Language and cultural barriers, lack of brand awareness, insufficient intellectual property (IP) protection, and global market volatility impose heightened demands on companies' globalization strategies.

"To build enduring global advantages, the children's product sector must prioritize sustained R&D investment, brand cultivation and a deeper alignment with international standards," Dong emphasized. "Meanwhile, government support in policy guidance, trade facilitation and IP protection will play a positive role."

As Chinese companies continue enhancing their innovation capabilities and advancing brand strategies, a global shift from "made in China" to "created in China" is steadily reshaping the children's product landscape. BR

This article was first published in China Today magazine 

Copyedited by Elsbeth van Paridon 

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