A Toys "R" store in Beijing, Nov 30, 2013. [Photo/VCG]

"Internet retailing continues to gain a strong share, as the pricing of products in online stores helps it capture sales from other channels," according to Euromonitor International Senior Associate Carol Lu.

"For toy and game firms, internet retailing is an important tool for marketing their products in regions where they have a limited presence," said Lu.

Sammartino said popular global and domestic movies drive the sales of toys and the impact lasts a long time.

Zhang Yuchen, general manager of Hasbro China, agreed that toys and movies are complementary. Hasbro gained success with its well-known brands including Marvel, Transformers, Star Wars and Play-Doh.

In addition to toys related to movies and TV programs, experience toys and educational toys are becoming favorites among younger Chinese parents.

"How to learn a better character and values through playing with toys is what Chinese parents care about," said Zhang.

In China, the total toy and game market was worth 218 billion yuan ($31.6 billion) in 2016. Traditional toys and games accounted for around 70 billion yuan, according to Euromonitor.