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Anne Petterd, head of international commercial and trade, Asia Pacific, at the law firm Baker McKenzie, said: "Throughout the pandemic we have seen parts of towns and countries closing down and opening up again.

Apart from functioning as a sales channel, e-commerce also has a role to play in driving content marketing and reshaping brand image, something often neglected by traditional brands.

Apart from investing more on digitalization, the company established the group's head office for the Chinese mainland in Shanghai this year, to forge a closer bond with local exchanges, as well as create a better connection with local business partners, in order to integrate resources and diversify sales channels.

Apart from being poor at branding and design, many Chinese toy companies also find themselves caught in price competition and lag behind in intellectual property protection awareness. For example, in late April, police busted the Shenzhen-based Longjun Toy Factory for counterfeiting Lego products in a scandal involving more than 200 million yuan ( million).

Another key measure highlighted by Liu was to deepen the reform of State-owned enterprises, especially mixed-ownership reform, to improve SOEs' corporate governance structures and internal incentive mechanisms.