Core Insights - The price fluctuation of Labubu blind boxes reflects the normal adjustment of the Chinese trendy toy industry, with initial speculative price surges followed by a return to more stable values [2] - Labubu, a popular IP from Pop Mart, significantly contributed to the company's revenue, accounting for over one-third of total income in 2024, leading to a revenue increase of over 100% year-on-year [2] - The overall landscape of the Chinese trendy toy industry shows an uneven distribution of original capabilities, with most companies still struggling to establish stable profitability [3] Company Performance - Pop Mart's revenue reached 13.04 billion yuan in 2024, driven by Labubu, with a projected revenue growth of 204.4% and net profit growth of 396.5% in the first half of 2025 [2] - Other companies like Chengshi Culture and 52TOYS are exploring innovative approaches but face challenges such as losses and limited IP influence [3] Market Dynamics - The Chinese trendy toy market is expected to reach 110 billion yuan by 2026, with an annual growth rate of around 20%, indicating a need for more diverse and enduring IPs beyond a few star products [3] - Compared to global leaders, Chinese trendy toy companies, including Pop Mart, lag significantly in scale and ecosystem, with Pop Mart's annual revenue being about one-fourth of Bandai Namco's and less than one-fifth of LEGO's [4] IP Development - The longevity and success of IPs like Gundam and Dragon Ball, which have decades of market presence, contrast with the relatively short history of domestic IPs like Molly from Pop Mart, raising questions about their sustainability [4] - The industry must shift focus from mere production to creative innovation, emphasizing long-term brand building and stronger intellectual property protections [5] Industry Outlook - The rise and fall of Labubu's prices signify a market returning to rationality, highlighting the importance of cultural value and emotional connection in trendy toys rather than short-term speculation [5] - The true maturation of the Chinese trendy toy industry will depend on the cultivation of diverse, enduring IPs and the emergence of competitive companies on the global stage, requiring dedication and time [5]

Group 1 - The 21st China (Shenzhen) International Cultural Industries Fair opened, showcasing Dongguan's "Trendy Dongguan" theme, focusing on the trendy toy industry and cultural tourism integration [1] - Dongguan is the largest toy export base in China, producing nearly 85% of the country's trendy toys, with the slogan "World toys look to China, Chinese toys look to Dongguan" gaining recognition [1] - In 2023, Dongguan was awarded the title of "China's Trendy Toy Capital," with 160 enterprises in the trendy toy production sector achieving nearly 23.8 billion yuan in revenue, a year-on-year growth of nearly 19% [1] Group 2 - The trendy fashion toy display area highlighted the application and integration of trendy art and fashion culture in the toy sector, featuring brands like TOYCITY and products based on popular domestic animation IPs [2] - The warm companionship toy display area focused on plush toys for companionship and parent-child interaction, showcasing products that blend traditional Chinese medicine culture with modern toy design [2] - The high-tech interactive toy display area featured innovations in artificial intelligence and virtual reality, including AI smart toys capable of interactive communication with users [2]