Core Insights - The report highlights the rapid expansion of Chinese trendy toy brands in global markets, particularly in Southeast Asia and Europe, reshaping the competitive landscape of the toy industry [1][2][6] - The global toy market reached a size of 773.1 billion yuan in 2023, with a projected compound annual growth rate (CAGR) of 5.1% from 2024 to 2028, driven primarily by the rise of collectible toys [2][16] - The shift in consumer demographics towards adult collectors, termed "Kidult" culture, is a significant driver of this market transformation [2][3] Market Dynamics - The collectible toy segment has become a core growth engine, with the global market for collectible toys reaching 57.1 billion USD in 2023 and expected to exceed 69.6 billion USD by 2028, reflecting a CAGR of 4.0% [2][17] - Traditional toy giants like Mattel and Hasbro are facing challenges due to aging IPs and reliance on offline channels, leading to a decline in market share [3][37] - The competitive landscape is shifting, with new brands like Squishmallows and Funko gaining traction, while established brands struggle to maintain their positions [3][33] Competitive Advantages of Chinese Brands - Chinese trendy toy brands leverage a three-pronged advantage: designer talent, supply chain efficiency, and IP ecosystem development [4][5] - The number of art students in China has increased significantly, from 133,000 in 2004 to 647,000 in 2024, providing a robust talent pool for design innovation [4] - Chinese manufacturers are enhancing production precision and efficiency, exemplified by companies like Gaodesi, which produces over 10 billion building blocks annually [4] Regional Market Insights - Southeast Asia is identified as a key battleground for Chinese brands, with a toy market size of 4.1 billion USD in 2023 and a young population driving demand [6][7] - The U.S. market shows high consumer spending on toys, with an average of 136.8 USD per person, significantly higher than in China [7][8] - Chinese brands are successfully penetrating the U.S. market through localized strategies and partnerships with popular IPs, achieving notable sales growth [7][8] Strategic Developments - Companies like Pop Mart are adopting a dual strategy of original IP development and global licensing partnerships, enhancing their market presence [5][8] - The trend of "prosumer" engagement is emerging, where consumers actively participate in the creation and promotion of IPs, increasing brand loyalty [8][9] - The report emphasizes the transformation of the Chinese toy industry from a manufacturing base to a global brand powerhouse, with significant cultural implications [9]

Investment Rating - The report maintains an "Overweight" rating for the consumer discretionary sector [10]. Core Insights - The report highlights that the潮玩 (trendy toys) industry is entering a golden era of international expansion, with significant growth opportunities in Southeast Asia and Europe [3][6]. - The global toy market is projected to reach approximately 773.1 billion yuan in 2023, with a CAGR of about 5.1% from 2024 to 2028 [4][24]. - The report emphasizes the competitive advantages of Chinese trendy toy brands, which have made substantial progress in product design, IP operation, and supply chain management [3][4]. Summary by Sections Global Toy Market Overview - The global toy market is expected to grow steadily, with North America, Europe, and Asia accounting for the majority of consumption [24]. - The collectible toy segment is rapidly gaining market share, with projections indicating a market size of 57.1 billion USD in 2023, expected to reach 69.6 billion USD by 2028, reflecting a CAGR of 4.0% [25]. Consumer Demographics and Trends - The consumer base for toys is shifting from children to a broader audience, with 25% of toy consumption in the U.S. and 29% in Europe coming from individuals aged 12 and older [5][6]. - The rise of social media and e-commerce has transformed toy marketing and sales channels, allowing for greater reach and engagement with consumers [5][6]. Regional Market Insights - Southeast Asia is highlighted as a rapidly growing market due to its young population and strong entertainment consumption culture, with local marketing strategies proving effective [6]. - The report notes that the U.S. and European markets present significant opportunities for Chinese brands, with increasing acceptance of diverse cultural products [6]. Competitive Landscape - The report identifies a shift in market dynamics, with traditional toy companies facing challenges from new entrants and collectible brands like LEGO and MGA Entertainment gaining market share [45][49]. - The competitive landscape is characterized by a transition from traditional toys to collectible and trendy toys, with brands like泡泡玛特 (Pop Mart), 布鲁可 (Blok), and 名创优品 (Miniso) positioned for growth [8][56]. Investment Recommendations - The report recommends investing in leading companies such as泡泡玛特, 布鲁可, and 名创优品, which are well-positioned to capture market share through strong IP operations and comprehensive value chain strategies [8][15]. - It also suggests monitoring emerging players in niche segments, such as 卡游 (KAYOU), which are actively expanding into international markets [8].