Core Insights - The meeting between Wang Ning, founder of Pop Mart, and Tim Cook, CEO of Apple, highlights the importance of the Chinese supply chain for Apple and suggests potential synergies between the tech and toy industries [1][3] - Pop Mart's impressive financial performance, with a target revenue of 20 billion RMB and a potential for 30 billion RMB, raises questions about the sustainability of its growth and the broader toy industry [3][28] - The toy industry, particularly the collectible toy segment, is experiencing rapid growth, with companies like Pop Mart and Card Game (卡游) expanding their IP portfolios and supply chains [4][11] Industry Overview - The collectible toy industry is characterized by a complex supply chain involving IP rights holders, manufacturers, and retailers, with leading companies like Pop Mart and Card Game integrating across the entire value chain [5][13] - Pop Mart's supplier network has grown significantly, from 85 suppliers in 2022 to 13,192 expected by the end of 2024, indicating a robust expansion strategy [6][8] - The IP landscape is evolving, with Pop Mart collaborating with major brands like Disney and leveraging various IPs to diversify its offerings and reduce reliance on single IPs [11][28] Financial Performance - Pop Mart reported its best-ever financial results, with a three-digit percentage increase in revenue and profit, addressing concerns about the sustainability of its business model [3][28] - Card Game's gross margin has reached nearly 70%, showcasing the profitability potential within the collectible card segment [3][28] - The financial success of both companies has led to increased interest from investors and a notable impact on stock prices of related firms [3][28] Supply Chain Dynamics - The toy industry's supply chain is becoming more defined, with clear roles for IP creation, manufacturing, and retail, similar to the structure seen in the tech industry [13][35] - Companies like Pop Mart and Card Game are investing in their supply chains, with Card Game establishing multiple production bases to enhance manufacturing efficiency [32][34] - The collaboration between toy companies and suppliers is deepening, with investments in manufacturing capabilities and joint product development initiatives [16][19] Challenges and Opportunities - Despite the rapid growth, the collectible toy industry faces challenges in maintaining sustainable growth and finding differentiated paths for long-term success [28][31] - The industry is still in its early stages, with a need for improved production techniques and standardized processes to enhance product quality and efficiency [35][36] - Companies are exploring new markets and diversifying their product lines, with Pop Mart and Card Game both looking to expand internationally and into new product categories [36][28]

Core Insights - The card game industry has seen explosive growth, with a company achieving revenue of 10.057 billion RMB in 2024, a significant increase from 2.662 billion RMB in 2023, and 4.131 billion RMB in 2022, indicating a strong upward trend in the market [3] - The emotional value associated with card collecting has become a driving force for consumer engagement, transforming simple cards into valuable collectibles and investment opportunities [4][17] - The integration of IP marketing, blind box strategies, and community engagement has created a comprehensive emotional marketing loop that resonates with younger consumers [5][10][17] Revenue and Profitability - The card game company reported a revenue of 10.057 billion RMB for 2024, with a cost of sales of 3.2915 billion RMB, reflecting a robust business model [3] - In the previous year, the company achieved a revenue of 100.57 billion RMB, with an adjusted net profit of 44.66 billion RMB, showcasing a year-on-year growth of 277.8% and 378.2% respectively [2] Marketing Strategies - The company has developed a diverse IP matrix with 70 different IPs, including popular franchises like Ultraman and Harry Potter, which has helped in establishing deep connections with consumers [7] - The blind box marketing strategy has lowered entry barriers for consumers, with prices for popular products ranging from 2 RMB to 10 RMB, encouraging repeat purchases [8] - Community marketing has enhanced social interactions among consumers, turning card collecting into a social activity that fosters connections among like-minded individuals [10][14] Consumer Behavior - The younger generation, particularly Gen Z, is more inclined to spend on emotional experiences rather than functional products, leading to a shift in consumption patterns [17][18] - The anticipation and excitement associated with blind box purchases have proven to be significant motivators for consumer engagement, often surpassing the value of the products themselves [9][10] Social Engagement - Live streaming of card unpacking has emerged as a new trend, creating a communal experience that enhances consumer interaction and engagement [13][14] - Physical card shops and pop-up stores have become social hubs, attracting large crowds and facilitating community building around card collecting [16]