Core Insights - The toy industry in Shipaizhen, Dongguan, known as the "Capital of Trendy Toys," has an annual output value close to 12 billion yuan, with over 4,000 toy manufacturers and nearly 1,500 supporting enterprises [1][2] - The transformation from small workshops to leading enterprises has established Shipaizhen as a global leader in trendy toys, producing over 80% of China's trendy toys and nearly 30% of global anime derivatives [1][2] Industry Development - The trendy toy industry in Shipaizhen began in the 1980s, primarily focusing on OEM production for well-known brands like Disney and Marvel, leveraging the region's skilled labor and export market [2][4] - The number of pure OEM enterprises decreased from 31 to 26, while authorized secondary creation and independent brand enterprises increased from 14 to 22 from 2023 to 2024, indicating a significant shift towards brand development and market-driven production [6] Cultural and Emotional Engagement - The trendy toy industry is evolving to meet the emotional and social needs of young consumers, transitioning from traditional toys to culturally rich products that resonate with modern aesthetics and personal connections [7][8] - Innovative products like the "Bafengte" sheep toy, designed to provide emotional support, exemplify the integration of cultural storytelling into toy design, enhancing their interactive value [7][8] New Business Models - Companies are exploring immersive consumer experiences, such as themed hotels and interactive toy projects that combine traditional elements with modern trends, thereby expanding the industry’s reach and appeal [9][12] - The introduction of unique concepts like "Traditional Chinese Medicine-themed" toys offers consumers a novel purchasing experience, blending cultural elements with playful engagement [9][12]