BEIJING - China's toy makers are exploring new ways to break the bottlenecks of development as the ongoing European crisis continues to impact demand.

Toy makers are actively expanding industrial reaches, enriching cultural elements in products and tapping into the domestic market in their attempts to survive global headwinds, reporters from China Securities Journal learned at a news briefing held in Guangzhou, the sector's stronghold.

Official statistics showed China's toy exports totaled $24.78 billion in 2011, up 17.57 percent year-on-year.

After deducting for pricing factors, the amount of exports actually fell during the period, Li Zhuoming, executive vice director of the Guangzhou Toy Association, said, attributing the drop to waning demand from Europe.

He said a stricter standard on toy safety in the European Union last year had substantially lifted testing fees for Chinese makers, which, in turn, hurt sales.

In response to rising costs and waning demand, toy markers are tapping new grounds, with some branching out into animation and baby products.

Others are shifting focus from selling products to selling culture.

He Bin, president of Hexin Group in east China's Zhejiang province, said his company partnered with the Department of Education and children magazines to produce a range of themed products, which led to the company's successful transformation.

Li said with exploration and upgrading, China's toy industry will take on a new look and there is ample room for development once world economic recovery picks up.