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How to Develop and Manufacture a New Wholesale Toy Product in China? (New product development process with example)

Price competition in the toy industry continues to increase, and more and more small and medium-sized toy companies are involved in price competition. In this situation, many toy wholesalers have decided to develop and manufacture new toy products to earn more profit. However, it is very difficult to develop and manufacture new toys. Fortunately, we have assisted several overseas customers to wholesale toys from China and have gained a lot of valuable experience. If you are interested, please read on.

Wholesale Toy Product

1.Have a new product idea

According to our past experience, there are two main categories of new product ideas.
1.1 Creating brand new products
The benefits of creating a brand new product are immeasurable. The benefits of creating a brand new product are immeasurable. Of course, the premise of wholesale toy products is that this brand new product has very good market prospects.

1.2 Improving existing toy products and adding features
Improvement is difficult for a product. This change can be big or small. But what is important is that it brings greater value to the consumer, that the consumer remembers the new product and is willing to pay for it.

So to develop a new toy product, first research the market and identify potential opportunities for a new toy product. Once you have identified a product idea, start designing it. But still consider factors such as safety, playability and target age group.

2.Create a prototype or design of the product.

Preparing a design draft or model can facilitate communication between you and your suppliers
2.1 You can sketch in advance: According to the product requirements, you can draw a simple sketch by hand first, including the product shape, structure, parts, functions and other design elements, which can be used as a preliminary design reference.

2.2 Design software modeling: Input the sketch into the design software for 3D modeling. The designer can draw a specific 3D model according to the product requirements and design elements. 3D design can visually show the appearance, structure, and material of the product, which can better demonstrate your ideas and intentions, and more easily attract the attention of users and investors. Let them know where your new project is. Also, verify whether your toy idea makes sense with the help of 3D design drawings.
In addition, 3D drawings can help increase your confidence in facilitating collaboration with the manufacturer. Because you have already taken the first successful step toward this project. In the subsequent in-depth discussion, Chinese toy manufacturers will also share some of their own opinions and suggestions for better improvement.

2.3 Make a physical model: Make a physical model based on the 3D model, which can be done by 3D printing, CNC machining, handcrafting, etc. The physical model can visually show the product appearance, function, material, etc., and help designers better understand the actual effect and problems of the product.

Wholesale Toy Product

3.Find the right supplier

This part of the process can easily be daunting if you have no previous experience in wholesale toy products in China. It can be difficult to sift through the vast amount of information and decide what is best for your business.There are several key points to consider when choosing the right manufacturer for your product:

3.1 Communication – Open lines of communication between you and your supplier are critical throughout the manufacturing process and help avoid major problems. Also, make sure that a non-disclosure agreement (NDA) is signed when manufacturing a new product in China, as it protects your ideas from being copied. the NDA must be signed with the finalized supplier. If the contracting is done through a substitute, the substitute needs to be contracted and kept confidential with the factory. A complete NDA includes the following elements:
Your company information (contact/phone/email, etc.)
Your product information (cost, appearance, design, features, etc.)
Your packaging information (logo, design, etc.)
Your order information (order quantity, order schedule, shipping schedule, etc.)

3.2. Supplier certifications and licenses – Make sure your suppliers have the relevant business licenses to operate their facilities and have any relevant compliance certifications to manufacture your products. There are many websites and resources available to check the reputation of Chinese manufacturers.

3.3. Minimum order quantity for wholesale toy products (Minimum Order Quantity) – Many factories in China have large minimum order quantities. For small businesses, this may not be a viable option. If you are not familiar with the Chinese toy market, or if you do not know what factory or trading company to work with, then you can look for a buying agent to fulfill your order.

A sourcing agent will keep in mind your cost control and quality control requirements and will find the right factory for you before shipping. Chinese buying agents are local operations and will be more familiar with the factories. For example, if a factory’s MOQ is 2000, the buying agent will find a way to help you get down to 1500 or even lower.

Wholesale Toy Product

4.Estimate the cost of the entire project

Pre-production Costs
Prototype cost (including design cost, 3D printing cost, hand-made cost)
Factory tooling costs (best to avoid plastic molds, otherwise you will incur expensive tooling fees)
Inspection costs (checking which items are required and which are not can save you a lot of money)
Sample costs and courier costs
Patent and brand registration fees (regarding patents, if you have the budget, you can apply for the PCT. but the usual way is to get the shield first and then start with the country of sale and add more countries as sales increase)

Production costs
Product cost (the biggest part of the value)
Inner packaging costs (better packaging will result in higher retail prices)
Outer packaging costs (if your product is packaged in 1 piece/outer box and will be shipped directly from the warehouse to the consumer via logistics, then you need to drop test the outer box to ensure that the product inside does not fall off and get damaged)
Packaging costs (if you combine goods from several factories into one finished product, you will get this cost on the list.)
Production losses (losses occur during the production process and need to be added to the specific defective rate)

Post-production costs
Shipping costs: Most buyers do not pay enough attention to shipping costs. By the time they realize the problem, it’s too late. Therefore, you need to consider how the product will be shipped and whether it is suitable for ground, water or air transportation.
Loss in transit: Special care should be taken for fragile items. Set a specific loss rate in your costing to ensure it is included in the retail price calculation.
Warehousing costs: If your warehouse has offsetting prices, you may consider storing more items for cheaper shipping costs. If your warehouse prices are too high, you can ask the factory to keep more inventory and ship on demand.
Marketing Cost: Calculate the budget you want to spend on platforms like Amazon, Google SEM, etc. and allocate it to the unit cost of each product. This cost is also an important part of the puzzle to complete the total price of the product to determine its retail price.

5.Customized pre-production samples

Determine the material and production process of the product.
You need to discuss this clearly with your supplier before formal production. They have more experience with the materials and production process and can provide it.

Improvement of pre-production samples.
When you receive pre-production samples, collect all reviews possible, including negative ones.
Pay special attention to those bad reviews, which are reasonable and unreasonable, and if they are reasonable, make sure to find a way to solve them in the meantime, don’t wait until it’s too late to change them for mass production.

In addition, when doing the trial mold, some reliable suppliers will give their opinion based on their experience, to remind you where not wise enough and need to improve.

6.Intellectual property and compliance certification.

Before wholesale toy products, it is also very important to carry out intellectual property rights and compliance certification
6.1 Intellectual property protection: You need to apply for and protect intellectual property rights such as patents, trademarks and copyrights for your toy products to prevent infringement and safeguard your brand rights.

6.2 Compliance certification: Toy products need to be assessed for compliance to ensure that they meet relevant national and regional regulations, standards and requirements, such as CE certification standards for the EU market, FCC certification standards for the US market, etc. Enterprises can commission third-party organizations to conduct assessments and certifications to ensure product compliance and reliability.

6.3 Safety assessment: Toy products need to be assessed for safety to ensure the safety of children and users, such as testing and evaluation of toy materials, structure, design, etc., to ensure compliance with relevant safety standards and regulations.

Wholesale Toy Product

7.Start of mass production

We have finally reached this point, and your order delivery is coming to an end, thank you for your hard work! Finally it was time to make. This is the starting line for your new product business to run and make money.

During production, you need to constantly monitor quality and delivery schedules, and also start contacting freight forwarders to arrange shipments.

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