The newly opened Hamleys in Nanjing, Jiangsu province, gives children a hands-on experience. [WANG LUXIAN/CHINA DAILY]

For decades, Hamleys in London's Regent Street battled it out with FAO Schwarz from New York to be known as the world's most prestigious toy store.

Now, just over a year after FAO Schwarz closed, a victim of soaring rents, Hamleys has gained a new lease of life under Chinese ownership with the launch of a massive superstore in the Chinese city of Nanjing that was timed to coincide with China's National Day holiday on Oct 1.

Plans were also announced for more than 100 new stores throughout China.

The Nanjing store offers shoppers the chance to visit four floors spread over 7,000 square meters at the Xinjiekou Sanpower Plaza.

Hamley's CEO Gudjohn Reynisson, clutching one of Hamleys' iconic teddy bears, said at the Nanjing opening: "We have been preparing to enter the Chinese market for the past 256 years in London."

Analysts said Hamleys was also looking to cash in on the easing of China's family planning policy.

Xinhua News Agency quoted the China General Administration of Customs as reporting that toy imports into China surged 38.27 percent in 2015.

Hong Kong-listed retailer C Banner International Holdings acquired Hamleys last October from French company Ludendo Groupe, which had owned it for two years. C Banner is a strategic partner of Sanpower, which has a major stake in House of Fraser, a British department store chain.

C Banner paid 100 million pounds ($127.5 million) for Hamleys.

Honor Westnedge, senior analyst at research group Verdict Research, said: "Retailers with British heritage and iconic brand appeal are attractive acquisition opportunities for overseas investors, particularly those from China and the Middle East. These buyers see the potential in growing the retailers globally, knowing that their British brand image will translate well internationally and stimulate demand from local consumers－providing lucrative returns on investment, if done respectfully of the brands' heritage."

Analysts say the key to Hamleys' continuing success has been its ability to maintain its branding. Traditional products, such as teddy bears, toy trains and model cars, are still on the shelves, but the retailer also stocks more up-to-date electronic and digital items.

"My parents took me to Hamleys, I took my children and now they are taking their children," said Richard Page, a father of two from Greenwich in east London. "The key thing is that there's always a slightly wonderful atmosphere which kids love. It's a treat for them, but there's continuity too. The model electric trains that I remember as a kid are still there."

Hamleys traces its roots back to 1760, when William Hamley founded a toy store in London's High Holborn. The shop moved to its Regent Street site in the heart of London's West End shopping district in1881, changing its name to Hamleys.

One attraction for parents and children has been the "hands-on" aspect, with kids able to try out toys.

Dai Tian and Xue Bai in London also contributed to this story.