Toys aren't just for children, at least not when the "world factory" — Dongguan in Guangdong province — is involved.

The city, with a string of entrepreneurial accolades, has ventured into manufacturing art toys — designer toys created by the fusion of art and toymaking — that are popular among young adults.

As a global toy manufacturing nexus, Dongguan is home to 4,000 toy-production enterprises, with nearly 1,500 related factories upstream and downstream. It produces about 85 percent of the nation's art toys, as well as a quarter of global anime merchandise.

Making toys isn't only engrained in production lines, but also in Dongguan's future, with its landscape brimming with toy figures and iconic intellectual properties.

In the heart of the bustling city, an imposing 12-meter-tall effigy was built in 2021 for a fictional girl Laura — a homegrown art figure emanating from circus clowns. Each year, the effigy changes costumes in accordance with different themes.

With a robust industrial chain and supply network, Dongguan's art-toy products have assumed an important role in domestic and overseas markets, reaching over 100 countries and regions.

Over the past three years, Laura has won the hearts of admirers across the globe. As the epitome of Dongguan, Laura, which was created by ToyCity — a company specializing in art toys — is an emblematic figure in her birthplace, a city branded the "capital of art toys in China".

Established in 2020, ToyCity is at the forefront of the country's art — toy industry, having given rise to a plethora of beloved original IPs, such as Laura, Mr PA and Angel Boy. Its annual sales were about 180 million yuan ($24.86 million) in 2023, up more than 20 percent year-on-year, with the number of followers on various social media platforms exceeding 3 million.

Qu Yao, the company's marketing director, believes the combination of competitive original IPs and Dongguan's complete supply chain have contributed to the firm's growth.

Qu points to the city's strong capacity for art-toy production, encompassing processes from design to mass production, 3D modeling and coloring, which allows for rapid product upgrades and a quick response to the evolving needs of consumers. ToyCity's flagship Laura series put out new products monthly, and the popular Mr PA has released eight series so far this year.

Until now, ToyCity has owned 32 trademarks, 33 design patents and 305 copyrights.

Power of creativity

Also banking on IPs to level the art-toy battlefield is Dongguan-based Hayidai Toys Co — an industry leader specializing in plush toys.

Hayidai, established in 1999, built up its base as an original equipment manufacturer for other toy IPs. It expanded its business landscape from OEM to a trifecta of businesses — the race business, which makes plush toys for major sports events such as the country's National Games and the Asian Games; the customized business, which is the traditional OEM business; and the business of nurturing its own brand and IPs.

According to Wang Chuanfu, Ha-yidai's associate marketing director, the company ventured into original IPs in 2021, and its art toys have reached markets in Europe, the United States and Southeast Asia. He sees the development of original IPs as a pivotal direction for the development of the art-toy industry.

Wang told China Daily Hayidai's brand business this year has doubled from that of 2023, and now has more than 100 original IP products.

During last year's "Double 11" shopping festival, sales of two of the company's flagship IP series rose more than 200 percent year-on-year.

Hayidai has woven regional characteristics into its creations. Its "Dongguan roast goose" plush toys and "Chinese medicine series" pendants, which offer an inventive way to present herbs, resonate profoundly with the public. Its other IPs draw inspiration from Chinese classics, such as Shan Hai Jing (the Classic of Mountains and Seas), or cultural heritage like the Mausoleum of the First Qin Emperor.

"Whether you are producing IPs or stories, it's important to marry international insight with China's own culture," says Wu Xian, an associate professor at the Beijing Film Academy's Digital Media School.

The value of Dongguan's toy exports from January to July this year surpassed 12 billion yuan, demonstrating the city's dominance in the industry. Its Shipai town epitomizes the strong momentum, housing the largest concentration of art-toy entities in the country with nearly 100 companies, including ToyCity.

Last year's launch of the 60,000 square-meter China Art Toy Center — a one-stop art-toy industry service area located in the town — has provided an integrated platform for IP incubation, brand operation, product design, and e-commerce sales. The center has attracted 28 enterprises, occupying an area of about 14,150 square meters and generating an annual revenue of about 680 million yuan.

Favorable environment

Li Yongjian, a research fellow at the Chinese Academy of Social Sciences' National Academy of Economic Strategy, acknowledges Dongguan's unparalleled edge in art-toy manufacturing. He attributes the city's success to robust production capabilities, product excellence, short lead times, designer collaboration, and process refinement.

He agrees that cultivating original IPs as a means of exporting brands and culture is significant. "After so many years of development, Dongguan's advantage in the art-toy industry is hard to replace," says Li, emphasizing that a conducive atmosphere and favorable government policies are imperative for realizing the city's transformation from manufacturing to creation.

Dongguan's fostering of the art — toy industry is evident in its introduction of policies and measures favorable to industry growth. The local authorities launched 11 specific initiatives last year to bolster all facets of the industry, including offering an annual subsidy of up to 3 million yuan each to related enterprises.

At the 14th China International Animation Copyright Fair held in Dongguan in late October, a new loan was introduced, enabling local art-toy companies to use their IPs as collateral. To secure the loan, enterprises are allowed to mortgage IPs such as copyrights, patents and trademarks. Based on their operation performance and tax records, the Bank of Dongguan will lend each applicant up to 30 million yuan at preferential interest rates. As the first batch of beneficiaries, three art-toy firms have secured a cumulative 55 million yuan in credit.

The trend toward cultivating IPs and the globalization of the art-toy industry is growing. This year's CIACF attracted more than 500 businesses from 60 countries and regions and displayed over 1,500 IPs. The event was graced by renowned IP creators and boosters, including Masataka Naruo, brand promoter of mascot Kumamon, and Daniel St Pierre, an American director behind animated films that include as The Lion King and Tarzan.

The fair, which has been held in Dongguan since 2009, is the only national animation copyright event of its kind. It drew over 30 million online and offline participants this year, racking up 110 million yuan in exhibition sales and securing cooperation agreements worth 1.24 billion yuan.