[Weekly Sneak Peek] Chinese Trendy Toy Brands Find Growth Market in Southeast Asia (AI Translation)

【周刊提前读】中国潮玩品牌在东南亚找到增量市场

[para. 1] The rise of "chao wan," or trendy toys, has captured the attention of collectors like Fonny Nurhadi in Indonesia, with LABUBU, a popular character from Pop Mart, becoming particularly prominent. Designed by Long Jiashe, LABUBU dolls feature unique artistic designs and are primarily purchased by adults with economic means and aesthetic tastes. These toys are valued for their distinctive materials and manufacturing techniques.

[para. 1][para. 2] LABUBU, introduced by Pop Mart in 2019, became a best-seller, particularly after the release of the LABUBU soft vinyl plush doll in October 2023. In the first half of 2024, Pop Mart's THE MONSTERS series, which includes LABUBU, reported a revenue of 630 million yuan, a 292.2% increase year-over-year. Pop Mart's success in Southeast Asia, fostered by celebrity endorsements like Thai K-pop star Lisa's, has fueled huge interest both online and offline. Pop Mart's Southeast Asian market revenue surged by 478.3%, becoming the company's largest market outside mainland China.

[para. 1][para. 3] The success of Pop Mart in Southeast Asia marks a significant shift as China's domestic trendy toy market slows down. The burgeoning middle class in Southeast Asia, combined with a young demographic, provides fertile ground for the expansion of trendy toys. Brands like 52TOYS and MINISO's TOPTOY brand are expanding their presence, with Pop Mart alone experiencing a 300% stock price increase.

[para. 1][para. 3][para. 4] Pop Mart's international expansion, particularly in Thailand and Singapore, has greatly improved its brand recognition. In Thailand, numerous stores were launched within a year, driven by social media influence from celebrities. Singapore also became an important market, with Pop Mart opening multiple stores tailored to young consumers. The diversity and potential of trendy toy markets in Southeast Asia are highlighted by a forecast indicating market growth from $5.64 billion in 2023 to $6.52 billion by 2028.

[para. 5] 52TOYS and MINISO are aggressively increasing their market footprints, capitalizing on their strong identities with unique IP characters and collaborative products. Pop Mart's retail strategies focus on optimal placement within high-traffic areas and engaging consumers emotionally, replicating the success strategies of animated IP-driven brands.

[para. 6][para. 7] Pop Mart has adopted a dual-channel strategy, investing heavily in both physical stores and e-commerce platforms across Southeast Asia, and partnerships with local celebrities and influencers have bolstered brand awareness. Pop Mart's focus on high-value locations in shopping malls for store openings enhances brand appeal through meticulously crafted customer experiences, akin to those of major animated brand stores.

[para. 8] As Pop Mart concentrates on elevating its brand influence, its primary strategy in determining which markets to enter hinges upon certain demographic metrics. The approach is largely mirrored by other Chinese trendy toy brands, while collaborations with local artists further bolster Pop Mart's market expansion.

[para. 9][para. 10] Companies like Pop Mart place a strong emphasis on exclusive IPs and localized product offerings. Miniso, for instance, adapts its strategies to align with cultural preferences, using local IPs where necessary. Celebrity endorsements play a strategic role in marketing efforts, with notable growth observed in plush toys and strengths in exclusive IPs.

[para. 11][para. 12] Pop Mart's plush toys and innovative designs contribute significantly to revenue growth. The emerging secondary market in Southeast Asia further facilitates the trendy toy ecosystem, with experienced collectors engaging in secondary creations like bespoke outfits and customizations for these figures.

[para. 13] Pop Mart and other trend-driven brands aim to establish sustainable expansion despite global supply challenges. With competitive pricing leveraging China's strong toy manufacturing sector, Pop Mart has maintained profitability and efficiency through strategic production and distribution adjustments.

[para. 14][para. 15][para. 16] The Southeast Asian market's trend-driven consumption behavior has attracted a new wave of interest, although some caution against over-reliance on hype. Lasting success requires diverse, rapidly evolving product lines and maintaining a strong IP core, suggesting that Pop Mart's caution in market penetration is strategic.

[para. 17][para. 18] Expansion beyond Southeast Asia, particularly into North America, is in focus for trend-driven brands like Pop Mart and MINISO. These brands aim to replicate their successes globally while addressing market variables like competition and IP longevity.

[para. 19] Despite robust growth overseas, debates linger about sustainability, with company executives selling shares possibly reflecting concerns about long-term stability. While the overseas trendy toy trend seems promising, the market's true potential remains to be fully validated by time and market dynamics.