Yi Jiaying, a reporter from 21st Century Business Herald, and intern Dong Guoqi

The first thing that comes to mind is definitely Pop Mart.

When it comes to trendy toys, many of the interviewed consumers unsurprisingly gave the same answer. The global phenomenon-level performance of Labubu is influencing the entire trendy toy industry.

Xia Lin (a pseudonym), a 90s-born white-collar worker in Shanghai, has found that trendy toys are no longer exclusive to specialty stores. "In the past, there were very few specialized stores. Now, stationery stores and grocery stores all sell them." On the other side of the market expansion, trendy toys have grown wildly and come into the view of players.

Li Zhe (a pseudonym), a post-2000s office worker, has truly felt this change in the shopping mall. "There are more stalls, and many new brands have emerged. My classmates around me are climbing over the walls (switching from their favorite brands to others). It's easy to imagine that the competition must have become even more fierce."

In recent months, Letsvan has launched a brand-new original IP, SIINONO, and 52TOYS has successively introduced three original ips, namely CiCiLu, PoukaPouka, and NINNIC. TOPTOY and the Sanrio family have exclusively collaborated to launch new rosy-themed products...

The core value of trendy toys has shifted from "toys" to "emotional companionship" and "social currency". In this regard, Qu Yao, the brand marketing director of TOYCITY, told the 21st Century Business Herald that as the Chinese market gradually changes and consumer demands upgrade, from material pragmatism to the pursuit of "emotional consumption and spiritual needs", young people are not buying trendy toys but rather their identity recognition and affirmation of the values of trendy toy ips. In addition, the ingenious sales concept of the blind box hidden edition has also aroused players' "gambling mentality" and the booming of the second-hand market.

From the scattered observations of consumers and the terrifying speed of new product launches simultaneously, it seems that a panoramic view of the Chinese collectible toy market after the Labubu storm can be pieced together. On one hand, there is an unprecedented prosperity and penetration; on the other hand, there are constantly emerging new players and competitors. When Pop Mart reached the pinnacle of the industry, a core question emerged: Beyond the spotlight, how are other Chinese trendy toy brands responding to this transformation?

Let's get lively

"I think the market has become more lively. A few years ago when I was playing with trendy toys, I hardly knew about it." " Zhang Wei (a pseudonym), a seasoned consumer of trendy toys, couldn't help but exclaim after seeing the sudden popularity of Pop Mart. The explosive growth of the trendy toy market has become a consensus.

The "Report on the Development of China's Trendy Toys and Animation Industry (2024)" released by the Institute of Finance and Strategy of the Chinese Academy of Social Sciences shows that the total market value of China's trendy toys industry has grown from 6.3 billion yuan in 2015 to 60 billion yuan in 2023, nearly tenfold. It is expected that the total market value will reach 110.1 billion yuan in 2026.

It is undeniable that Pop Mart has brought an overwhelming amount of traffic. Wang Qi (a pseudonym), a post-2000s fan, said frankly, "Since I brought Labubu, my partners and I have been 'cyber queuing' in our respective cities. Now, trendy toy stores are very popular and convenient."

While the foot traffic in offline stores has soared, leading shopping malls have also proactively adjusted their recruitment strategies, making millet stores and trendy toy stores the standard for attracting customers, and even creating 2D themed streets for them. Tmall and Douyin, the online channels, have designated trendy toys as a first-level category, making it convenient for players to purchase them online.

In March this year, Quantum Song announced the acquisition of 61% of the equity of Letsvan, which officially became a wholly-owned subsidiary of Quantum Song, completing the largest acquisition in the domestic primary market in the field of trendy toys this year. In May, Wanda Film's wholly-owned subsidiary, Yingshiguang, and Ruyi Xingchen, a wholly-owned subsidiary of China Ruyi, jointly invested 144 million yuan in the trendy toy enterprise 52TOYS. Immediately following June, Yuewen participated in the strategic investment of the plush toy brand "Super Vitality Factory".

The sudden popularity of Labubu has brought many influences to the trendy toy industry. On the positive side, it has attracted more consumers' attention to the field of trendy toys, promoted the wider dissemination of trendy toy culture, and enabled more people to understand the potential of the trendy toy market. It has also drawn more capital and enterprises into this industry, promoting its development." Some insiders point out, "However, it also inevitably leads to a tilt in resources. Some popular ips and brands will receive more resources and attention, while some niche ips may be overlooked." One tree cannot make a forest. Any healthy industry needs a variety of flowers to bloom.

Qu Yao further pointed out that social media platforms promote the breaking of the circle of trendy toys through unboxing videos, trendy adaptations and other content, forming a social recognition that "showing off trendy toys = trendy identity". The content narrative of trendy toy ips also promotes the formation of fan communities similar to anime culture. On Xiaohongshu, the topic of "modifying kids" has received over a million views. Players have been sharing their modification achievements one after another, triggering behaviors such as comics and editing for secondary creation, further expanding the coverage of the trendy toy IP.

However, the prosperity of the market has not benefited all players, and the trend of differentiation is becoming increasingly obvious. Zhang Wei said, "The fun of trendy toys is truly lively, and the 'competition' is truly 'competition'." Labubu has turned "trendy toys" into social currency. Trendy toys are no longer niche, and the threshold has been raised. It seems that players' eyes have become more discerning, and aesthetic fatigue is getting faster. The small brands I used to pay attention to are now finding it very difficult.

A hundred flowers bloom in profusion

As the saying goes, "A single flower does not make spring; a garden in full bloom does."

According to the "2025-2030 China Trendy Toys In-depth Analysis and Development Prospect Research Forecast Report" released by the China Commerce Industry Research Institute, the combined market share of the top five IP toy companies in China's trendy toys market is only 20.8%. The industry as a whole presents a situation of "one superpower and many strong players, with fragmented competition", and monopolies have not yet been formed. All trendy toy merchants are building up their strength Strive to build the next Labubu.

The primary issue at hand is how to create or discover an IP with potential. A successful IP needs to have a highly recognizable "personified design" to form a good visual symbol. The IP image should catch the eye within three seconds and avoid being overly complex. Qu Yao pointed out that another part is the emotional story and world view of the IP. Even if it is as simple as a blind box, background Settings are still needed to enhance the sense of immersion.

It is not difficult to notice that nowadays, "emotion", "companionship" and "resonance" have become the key words for trendy toys. The design team of the newly launched IP SIINONO by Letsvan introduced that they aim to create a companion that can resonate with users' emotions, making the IP an emotional anchor and outlet in the fast-paced urban life, and conveying the emotional resonance of "even if it is not perfect, it still has unique cuteness".

"SIINONO is not a work of sudden inspiration by a designer, but a collective creation refined repeatedly by a professional team." " A person close to Quantum Song disclosed. Unlike Pop Mart, which mainly operates artist ips, Letsvan has always adopted a model where the team develops its own ips.

In fact, increasing investment in self-developed products has also become a consensus in the industry. Sun Yuanwen, the founder and CEO of TOP TOY, also stated in an interview with the media that the company plans to increase the proportion of self-developed products from 40% to 70%. Although 52TOYS has not disclosed specific indicators, it also emphasized the importance of the commercialization capabilities of its own and licensed ips in its prospectus. The financial report shows that Brucor's R&D investment in 2024 reached as high as 193 million yuan, demonstrating its determination.

TOYCITY, on the other hand, has taken a different approach by incorporating AI empowerment, featuring an emotion-sensing AI companion doll called "Little Rake AI". Its chairman, Zheng Bo, said, "We want trendy toys not just to be on the shelves but to truly accompany everyone." The future of trendy toys might enable everyone to have a companion who is more patient than a friend and smarter than a pet.

And even further, how to create a hit IP? What have everyone learned from the Labubu case? "Indeed, it requires the right timing, favorable conditions and harmonious human relations. It requires luck, but more importantly, it needs operation." " A worker from a trendy toy brand told the 21st Century Business Herald reporter, "Lisa's product promotion, on the one hand, has shown everyone the possibility of the star effect. On the other hand, it cannot be ignored that Pop Mart's series of operational actions have been well-timed."

It is worth mentioning that some trendy toy ips have begun to put this into practice. At the end of 2024, under the introduction of Quantum Song, Lehua Entertainment and Letsvan jointly established Yuhua Tongxing (Beijing) Culture Development Co., LTD. Relying on the star resources of the former, the trendy toy IP WAKUKU began to gain popularity. Since the beginning of this year, WAKUKU has frequently appeared in the life scenes and social media of celebrities such as Yu Shuxin, Ding Yuxi, Zhang Ruonan and Qi Wei.

In terms of operational strategies, WAKUKU and SIINONO share the same approach: strengthening IP recognition through multiple touchpoints such as social media, star scene placement, and fan content co-creation. SIINONO has also appeared on the social media platforms of celebrities such as Zhang Jingyi and Zhang Ruoyun, quickly establishing user familiarity. The person close to Quantum Song further introduced that in the future, they will intensify their IP collaboration plans, including in-depth cooperation with well-known commercial brands, popular events, and cultural ips."

The road ahead is long

The star effect can temporarily ignite an IP, lift the traffic lever, and enable the IP to cross boundaries and break through circles. Star-themed collaborations can attract non-trendy toy audiences, but it is necessary to pay attention to the matching degree between the fans and the IP's tone. Qu Yao stated directly that over-reliance on celebrities might lead to the IP being regarded as a "star peripheral" rather than an independent cultural symbol.

She further stated that community operation is also a very important link. From users to "co-creators", the forms of operation can be encouraging fans to create secondary works, opening up designer collaborations, and offline scene penetration, theme exhibitions, etc.

In this regard, the person close to Quantum Song also said that apart from the "IP+ blind box + omni-channel" model, there are many other forms of trendy toys worth exploring.

Firstly, trendy toy pop-up stores still have great potential. As a product and form that is deeply favored by young people, they can drive traffic to traditional business districts and achieve a win-win situation.

Secondly, carry out immersive experience activities with the theme of trendy toys, such as creating various trendy play-themed stores. While consumers enjoy delicious food or participate in games, they can immerse themselves in the culture of trendy toys, enhancing their sense of identity and belonging to the trendy toy IP.

Thirdly, cross-border cooperation with intangible cultural heritage and traditional art, integrating traditional Chinese elements into the design of trendy toys, can not only inherit and promote traditional culture, but also add unique cultural charm to trendy toy products, attracting more consumers with different needs.

In fact, in the industry's view, the current market for trendy toys is still far from mature. Consumer feedback mainly revolves around first - and second-tier cities. More people think this is just a "toy for city dwellers". Fans are willing to spend 3,000 yuan on the hidden version, but there is still another voice asking, "Why is this thing more expensive than rice?"

In response to this, a continuous stream of brands, ips, and new products have emerged, all jointly promoting the popularization of this once niche market. "For major labels, they will do their best to turn originally niche circle ips into popular ips among the general public." " The above-mentioned industry insiders pointed out that at the same time, it is necessary to reach a wider range of consumers through online e-commerce platforms, social media platforms, as well as offline trendy stores, supermarkets, boutiques, etc.

According to data from Qichacha, there are currently 23,600 domestic enterprises related to trendy toys. In the past decade, the number of related enterprises registered has shown a rapid growth trend. In 2024, a total of 9,129 related enterprises were registered throughout the year, representing a year-on-year increase of 30.23%. As of now, 6,330 enterprises related to trendy toys have been registered this year, among which 5,491 were registered in the first six months, representing a year-on-year growth of 41.08%.

"Breadth is there, but depth is far behind!" " Qu Yao believes that the industry has just survived the period of wild growth and is now in a period of painful transformation. The fading of the bubble period will make consumers more deliberate in their purchasing decisions. More new competitors are beginning to enter the industry, and the requirements for product quality and story-telling are higher. Of course, this is a good thing for consumers. Trendy toys are still far from being truly popularized. At present, they have merely come into the public eye.