China’s rising middle-class craves imported goods, as Chinese society is undergoing a recent upgrade in consumption. Fast-growing personal income, relaxed one-child policy and a tradition to value education have jointly made children products one of hottest sections in the market at the moment. An increasing number of overseas toys retailer, including European leading seller JAKO-O, realize the potential and start to sell to China via various channels.
The disposable personal income of Chinese residents has increased dramatically in the past 30 years, reaching an all-time high of RMB 31,195 (US$ 46,605) in 2015 . As urban dwellers’ income rises and quality of life improves, their demands for toys are beginning to change. There is a shift turning from traditional, medium- to low-end battery-operated toys, construction sets and decorative toys to innovative electronic toys, intelligent toys as well as upmarket plush toys. In addition, Chinese consumers are now emphasizing on quality and unique features. While most domestic brands still lack competitiveness, overseas products are perceived as more reliable and better designed. This consumer favor for imported products underlies the great opportunity for overseas toys retailers and brands.
The total retail sales of toys and games in China have soared from RMB71.7 billion in 2010 to RMB192.3 billion in 2015, registering an average annual growth rate of 21.8% and are expected to exceed RMB300 billion by 2019, according to data from market research company Euromonitor, China has imported toys with value of US$ 896.8 million in 2015, increasing 42% from 2014. 
Besides the boost from a steady economic, China’s toy market will continue to buoy with an expected jump in the number of future customers. There are around 226 million children under the age of 14 on the Chinese mainland. Thanks to several relaxed policies in birth-control in the past several years, the National Health and Family Planning Commission of China predicts that the number of newborns will climb to between 17.5 million and 21 million annually for the next five years.
Among all the overseas toys retailers selling to China, JAKO-O, a German toys online retailer, stands out as an innovator. It has recently started to sell directly to China through cross-border eCommerce. Azoya, one of China’s leading eCommerce solutions’ provider, helped JAKO-O establish its online presence in China. "Azoya approached us last year and presented us a solution how we could expand our business to China. We had already considered the Chinese market at this time and Azoya’s market expertise and know-how convinced us", says Frau Peetz, Managing Director Sales and Marketing JAKO-O. "We decided to cooperate with Azoya and we are pleased that our Chinese online store is now live. We are very excited about the development in the upcoming months."
The cooperation enables JAKO-O to sell directly to China with a branded Chinese eCommerce website, and a well-managed local operation without setting up a local entity.