Core Insights - The 137th Canton Fair's third phase focuses on the theme of "Beautiful Life," with the "Play and Pets" section gaining significant attention [1] - The pet supplies sector is rapidly evolving towards smart and emotional products, showcasing resilience and vitality in the face of market challenges [1][2] Industry Trends - The Chinese pet market is expanding, driven by an increasing number of pet owners, with the pet supplies exhibition attracting international buyers [2] - There is a noticeable rise in interest for smart pet products, such as smart cat litter boxes and feeders, reflecting a shift in young consumers' demands towards interactivity and technology [4] Company Innovations - Companies like Tianyuan Pet Products are launching numerous new products monthly, focusing on interactive toys and upgraded pet supplies, including fashion items targeted at young female consumers [6] - The company emphasizes enhancing emotional connections between pets and owners, integrating eco-friendly designs, and incorporating AI technology into smart devices [6] Market Dynamics - Tianyuan Pet Products is expanding its overseas operations to mitigate risks from changing international trade environments, with a significant portion of its revenue coming from international markets [8] - The toy export market is experiencing a decline in 2024, but exports to Central Asian countries are on the rise, indicating a shift in market focus [8][10] Competitive Strategies - Companies are diversifying their markets beyond the U.S. to Europe, Southeast Asia, and the Middle East, leveraging China's cost advantages and robust supply chains [10] - Investment in R&D is crucial, with companies like Nanjing Kete Toys allocating 5%-10% of their annual output value to innovation, enhancing their competitive edge in global markets [12]

Group 1 - The 137th China Import and Export Fair (Canton Fair) is currently taking place in Guangzhou, showcasing the resilience and vitality of Chinese toy export companies through capacity adjustment, new market exploration, product innovation, and domestic demand potential [1] - According to the "2025 China Toy and Baby Products Industry Development White Paper," China's toy exports are expected to decline year-on-year in 2024, with the decline narrowing, while exports to the United States remain the highest and exports to Central Asian countries show growth [1] - Bestway holds approximately 35% of the global market share in inflatable sports and leisure products, with the U.S. accounting for about 50% of its total exports; however, U.S. clients are currently hesitant due to fluctuating tariff policies, leading to a pause in order negotiations for the first quarter of next year [1] Group 2 - Bestway plans to expand its production capacity in Vietnam and explore emerging markets, noting an increase in overseas buyers at the Canton Fair, particularly from Asia and South America, with a recovery in European clientele [1] - Beijing Taiyu Boyang International Trade Co., Ltd. has shifted from reliance on the U.S. market since 2022 to expanding into Europe and Southeast Asia, successfully entering the European market due to compliance with European toy safety standards [2] - The company emphasizes the competitiveness of Chinese toy products, highlighting their affordability, high cost-performance ratio, and the robust domestic supply chain [2] Group 3 - Nanjing Kete Toy Co., Ltd. has developed a multifunctional plush bag that has attracted interest from foreign buyers, showcasing the importance of product development and market responsiveness [2] - The company invests 5% to 10% of its output value in research and development, leading to strong sales on platforms like Amazon due to high quality, unique design, and patent advantages [2]