2025-08-18 01:00Summary of the Call Transcript on the Trendy Toy Industry Industry Overview - The trendy toy market was initiated by Hong Kong artists, integrating art and fashion elements, with diverse forms including figurines, sculptures, and blind boxes [1][2] - The broad definition of trendy toys includes collaborations with IPs from films, anime, and games, catering to specific enthusiasts [1][3] - The blind box segment has rapidly gained popularity due to low consumer and cognitive barriers, high adaptability, and hidden design features [1][4] Key Insights - Consumer Demographics: The core audience for trendy toys is aged between 15 and 40, with a higher proportion of female users, although the overall gender ratio is becoming more balanced [1][6][8] - Market Size and Growth: The domestic trendy toy market is expected to exceed 100 billion yuan by 2026, with blind boxes showing high growth rates. The IP toy market is projected to be around 700 billion yuan, with building and assembly toys accounting for about 30% [1][11][12] - Market Competition: The market is fragmented, with LEGO leading at 12 billion yuan GMV, followed by Pop Mart at 8.7 billion and Brook at 2.5 billion. The top ten companies hold about 50% of the market share [1][13] Success Factors for Trendy Toy Companies - Traffic IP: Successful companies leverage high-traffic IPs, typically character designs rather than content-based, due to their higher commercialization potential [4][5] - Product Quality: High-quality products are essential, requiring effective design and supply chain barriers [5] - Social Media and Secondary Market: Effective social media marketing enhances brand visibility, while a convenient secondary market facilitates transactions [5] - Entertainment and Interaction: Creating engaging purchase experiences and interactive scenarios increases consumer entertainment value [5] Consumer Needs in Blind Box Purchases - Value for Money: Consumers seek affordable and easily accessible products [7] - Emotional Connection: There is a desire for self-identity, curiosity, and social recognition through collecting [7][6] - Social Interaction: Collecting and trading through social platforms fosters community engagement [7] IP Acquisition and Market Dynamics - IP Acquisition: The domestic market primarily acquires IP through self-incubation and collaborations with independent artists, with IP accounting for a small percentage of GMV [10] - Future Trends: The market is still in its early stages, with potential for structural changes and innovation in product categories [12] Company Strategies - Pop Mart's Expansion: Pop Mart is expanding its IP matrix and product categories, with plans to open 320 stores next year, increasing its overseas presence significantly [2][16][21] - 52TOYS Strategy: 52TOYS focuses on a combination of self-owned and licensed IPs, with a significant portion of revenue coming from external IPs [22][23] Sales Channels and Revenue - Diverse Sales Channels: Both companies are diversifying their sales channels, with a significant reliance on distributors while also expanding direct-to-consumer (D2C) models [24][21] - Revenue Projections: 52TOYS generates 70-80% of its revenue from licensed IPs, with a focus on static blind boxes and figurines [23] Future Outlook - IPO Plans: The companies are preparing for potential IPOs, with Pop Mart expected to file in Hong Kong, aiming for a listing in 2025 or 2026 [26]