Core Viewpoint - The Chinese secondary dimension market is expected to reach approximately 597.7 billion yuan in 2024, nearly double the size of 2019, driven by the growing popularity of domestic IPs and government support for their development [1][9]. Market Expansion - The market for character-related sectors such as animation and gaming in China is rapidly expanding, with a projected market size of about 12 trillion yen (approximately 580.5 billion yuan) in 2024, doubling from five years ago [1]. - The "BiliBili World" event in Shanghai attracted around 300,000 attendees over three days, indicating a significant increase in interest and participation in the secondary dimension culture [8]. Domestic IP Popularity - The popularity of domestic characters is on the rise, exemplified by the success of the animated film "Nezha," which grossed over 15.4 billion yuan during the Spring Festival, setting a record for Chinese box office earnings [12]. - The top trending IPs on China's second-hand trading platform include "Love and Deep Space" and "Identity V," showcasing the growing presence of Chinese IPs alongside popular Japanese works [15]. Government Support - The Chinese government is actively promoting the development of original IP brands, as outlined in the "Special Action Plan for Boosting Consumption," which emphasizes support for the animation, gaming, and esports sectors [14]. - Policies in Shanghai aim to revitalize tourism through IP and support the development of original IPs, reflecting a broader governmental strategy to enhance the domestic market [14]. Future Projections - The secondary dimension market in China is projected to expand to 834.4 billion yuan by 2029, driven by increased production and circulation of animation and gaming content, as well as the growth of emotional value consumption [9].

Core Insights - The article highlights the transformation of Dongguan from a "world factory" to a "trendy toy capital," driven by the rising global demand for Chinese original IPs and trendy toys [1][11] - According to Goldman Sachs, China's share of the trendy toy market in overseas markets is projected to increase from 3% in 2020 to 18% by 2025, indicating strong growth potential for the industry [1][11] - Dongguan produces 25% of global anime derivatives and 80% of China's trendy toys, showcasing its comprehensive industry chain from IP design to smart manufacturing and cross-border distribution [1][11] Industry Development - The trendy toy sector is experiencing a surge, with products like LABUBU's "Front High Energy" series becoming bestsellers [3][4] - Dongguan's manufacturing capabilities have evolved over decades, allowing it to quickly adapt to new product trends and maintain a competitive edge in the trendy toy market [4][6] - The city has established a collaborative ecosystem among its various districts, each specializing in different aspects of toy production, which enhances the industry's responsiveness [6][14] IP Creation and Brand Development - Many companies in Dongguan are shifting focus from OEM to developing their own IPs, recognizing the high profit margins associated with original creations [7][11] - The establishment of companies like Dongguan Duolang Cultural Creative Co. and ToyCity reflects the trend of nurturing original IPs, with ToyCity successfully launching 20 original IPs [8][11] - The article emphasizes the importance of original IPs for sustaining a company's vitality in the trendy toy industry, as seen with companies like Modonghe [13][14] Technological Integration - The integration of AI and digital technologies is reshaping traditional production processes, allowing for faster development cycles and more flexible manufacturing [9][19] - Companies are investing in smart manufacturing technologies, with projects like the 200 million yuan investment in a new smart factory aimed at enhancing production efficiency [9][19] - The collaboration between Dongguan and tech institutions aims to establish a talent training system for AI-driven toy design and manufacturing [19] Policy Support and Future Outlook - Dongguan has implemented various supportive policies to foster the growth of the trendy toy industry, including financial backing for original IP development and market expansion [15][19] - The establishment of the "China Trendy Toy Capital·Comic Expo Center" aims to create a hub for showcasing, trading, and incubating trendy toy products [15][19] - The article concludes that the future of Dongguan's trendy toy industry will revolve around AI, IP development, and international market expansion, marking the beginning of a new phase in its evolution [19]

Core Viewpoint - The article highlights the transformation of Dongguan from a "world factory" to a "trendy toy capital," driven by the booming demand for Chinese original IPs and the city's robust manufacturing capabilities [1][9]. Industry Overview - Dongguan produces 25% of global anime derivatives and 80% of China's trendy toys, establishing a complete industry chain from IP design to smart manufacturing and cross-border circulation [1][5]. - The market share of Chinese trendy toys in overseas markets is projected to rise from 3% in 2020 to 18% by 2025, indicating strong growth potential [1]. Manufacturing and Supply Chain - Dongguan's manufacturing sector has evolved from OEM to ODM, significantly enhancing its production capabilities and technical expertise, particularly through decades of experience working with global brands like Disney and Marvel [5][12]. - The city has developed a collaborative network among its various towns, each specializing in different aspects of toy production, which supports rapid response to market demands [5][12]. Innovation and Technology - Companies like Weisi are adopting modular approaches and advanced technologies such as 3D printing and AI to streamline production processes, reducing mold development time by 80% and overall production cycles from 60 days to 10 days [7][16]. - The establishment of AI technology sharing centers aims to integrate AI into toy design and manufacturing, enhancing the industry's innovation capabilities [16]. IP Development and Market Trends - The trend of developing original IPs is becoming a focal point for many Dongguan toy companies, with firms like ToyCity and Mo Dong He focusing on creating unique characters and stories to drive sales [6][11]. - The rise of Z-generation consumers is fueling demand for emotional value in products, leading to a surge in the popularity of original IPs and trendy toys [9][13]. Government Support and Future Prospects - Dongguan has implemented various supportive policies to foster the growth of the trendy toy industry, including financial incentives for R&D and market expansion [12][13]. - The city is positioning itself as a hub for trendy toy IP transformation, aiming to create a comprehensive ecosystem that integrates design, production, and sales [13][16].

Core Insights - The surge in overseas sales of LABUBU has spotlighted Dongguan's Shipaizhen, attracting both domestic and international businesses to the area [1] - Shipaizhen boasts a top-tier toy manufacturing industry chain in China, which supports the growth of brands like Pop Mart [1] - The rise of "trendy toys" is reshaping Dongguan's toy industry, with businesses pursuing opportunities in this sector [1] Industry Overview - Shipaizhen is recognized as the "Trendy Toy Capital of China," with over 400 toy and trendy toy production enterprises [11] - The total output value of the trendy toy industry cluster in Shipaizhen is projected to reach 13.218 billion yuan in 2024, reflecting a year-on-year growth of 12.3% [11] - The town accounts for approximately 30% of Dongguan's trendy toy industry output value, making it the largest in the city [11] Company Developments - Dongguan Yanchuang Cultural Development Co., Ltd. was established in 2024 and has developed its own trendy toy brand, EMMA, which has gained popularity [2][3] - The company transitioned from producing complex figurines to focusing on trendy toys due to market demand and operational challenges with previous partners [3] - Dapiaoqiang Toy Co., Ltd. has capitalized on the popularity of plush toys, achieving significant sales growth due to the demand for alternatives to high-priced limited-edition products from LABUBU [4][5] Market Dynamics - The trend of live-streaming sales has significantly influenced the growth of companies like Dapiaoqiang, which has amassed a large following and expanded its product offerings [5][6] - The competitive landscape is shifting as traditional toy manufacturers face pressure to adapt to the higher profit margins associated with trendy toys [9][10] - The entry of non-industry players into the trendy toy market has led to increased competition, with many struggling to sell their products [10] Technological and Operational Advancements - Companies like Wenbo Craft have upgraded their production capabilities by introducing advanced machinery and establishing a professional product laboratory [7][8] - The local industry benefits from a well-established supply chain, allowing for quick assembly and production of trendy toys [6] Consumer Behavior - Trendy toys differ from traditional toys in that they often rely on aesthetic appeal rather than established character narratives, leading to a stronger emotional connection with consumers [10] - The lower production costs associated with plush and rubber toys have made them more accessible for manufacturers, although this has also intensified competition [10]

Core Insights - The gaming industry in Shanghai has shown strong growth in the first half of 2025, with total sales revenue reaching 83.283 billion yuan, a year-on-year increase of 10.8% [1] - The overseas market for Chinese games is growing faster than the domestic market, with a compound annual growth rate of 18.36% compared to 10.75% for domestic sales from 2015 to mid-2025 [2][3] - The success of Chinese gaming companies in international markets reflects a broader trend of globalization within the industry, with many companies focusing on overseas expansion [1][2] Industry Performance - In the first half of 2025, Shanghai's online gaming industry achieved a total sales revenue of 83.283 billion yuan, with domestic sales at 68.737 billion yuan and overseas sales at 14.546 billion yuan, marking increases of 10.73% and 11.12% respectively [1] - The electronic sports sector contributed 3.254 billion yuan, growing by 6.91% year-on-year [1] Globalization Trends - Chinese gaming companies are increasingly focusing on global strategies, with overseas market revenue growth outpacing domestic growth due to slower user growth in China [2][3] - The average spending per user in overseas markets is significantly higher, with U.S., Japan, and South Korea users spending 221, 249, and 218 USD respectively, compared to 63.34 USD for Chinese users [3] Technological Advancements - The development of AI technologies is facilitating the international expansion of Chinese gaming companies, enabling better localization and market analysis [4][5] - Companies like Mu Tong Technology are leveraging AI for player sentiment analysis and content creation, significantly reducing development costs and time [4][6] Challenges in International Markets - Despite the growth potential, Chinese gaming companies face challenges such as political and economic fluctuations, cultural differences, and legal barriers in foreign markets [6][7] - Smaller companies, particularly those with overseas revenues below 100 million yuan, are experiencing revenue declines due to these challenges [6] Strategic Recommendations - Companies are advised to focus on original IP development and long-term operational capabilities to enhance their presence in international markets [8][9] - The importance of cultural localization and community engagement is emphasized, with successful examples of integrating local cultural elements into games [10][11] Market Dynamics - The competitive landscape is intensifying, with rising costs of customer acquisition and increased competition from local developers in emerging markets [7][12] - The concentration of game types in the overseas market, particularly in strategy games, poses a risk as user preferences in developed countries lean towards casual and social games [7][12] Future Directions - Companies are encouraged to diversify their platforms and collaborate with overseas firms to enhance their global footprint [12][13] - The trend of establishing overseas studios is growing, with over 20 companies setting up operations in various countries to support their international strategies [13]

Core Viewpoint - The article highlights the rise of the潮玩 (trendy toy) industry in Shipaizhen, Dongguan, emphasizing the shift from being mere OEM factories for brands like Pop Mart to developing original IPs, reflecting a broader trend in the toy manufacturing sector in China [3][4][15]. Group 1: Industry Overview - Shipaizhen is a significant hub for潮玩 production, with over 400 toy manufacturers and a total output value of 132.2 billion yuan in 2024, marking a 12.3% year-on-year increase [3][4]. - Dongguan, known as the "world's factory," produces 1/4 of global anime derivatives, with Shipaizhen accounting for 50% of潮玩 products in Dongguan [9][10]. - The潮玩 industry in Shipaizhen has evolved from a focus on OEM production to a growing emphasis on original IP development, with the number of original IPs increasing from over 30 in 2021 to over 100 in 2024 [20][24]. Group 2: Company Dynamics - Many toy factory owners in Shipaizhen aspire to create their own original IPs, moving away from low-margin OEM work, which typically yields profits of only 3-10% [11][15]. - Pop Mart's collaboration with local factories has raised industry standards and introduced higher craftsmanship requirements, prompting factories to seek their own IPs for better profit margins [15][16]. - ToyCity, founded by a former OEM factory owner, has successfully developed around 20 original IPs, demonstrating the potential for local companies to transition from OEM to original content creation [18][19]. Group 3: Challenges and Opportunities - The transition to original IP development is fraught with challenges, including high costs and the need for effective marketing strategies, as many companies lack experience in market promotion [29][30]. - The investment required for IP development can be substantial, with companies often needing to cultivate a loyal fan base to ensure profitability [31][33]. - Despite the difficulties, the potential for success in the潮玩 market drives companies to explore various paths for IP development, including licensing and content creation [33][34].