According to Euromonitor the retail sales total of games and toys in China have risen between RMB 135.6 billion back in 2013, to RMB 324.1 billion by 2018with an average annual rate of 19.1 percent. But not all toys are sold to children. POP MART offers the blind box, is a top player in the market for designer toys in China.
The market for designer toys in China has grown over the past few year. Based on Wang Ning, the founder of POP MART the trend of designer toys began at Hong Kong in the 1990s and was heavily influenced from Japan, South Korea, and the West in the early 2000s. This trend is expected due to the country’s robust economy, says Wang Ning.
The meteoric rise of POP MART’s POP MART among the rapidly growing Chinese toy market
On the 11th of December in 2020 POP MART launched its initial public offering (IPO) at 38.5 HK$ a share hoping to raise six74 million dollars. At the close of the day the value of POP MART’s shares increased by a third to 77.1 HK$, breaking the record for the most successful debutant with deals of more than 500dollars within Hong Kong. Within ten years of opening its first location located in Beijing, POP MART has earned its spot as the top player in China’s Chinese marketplace for designer toys. It boasts an annual rise of 22.8 percent, the industry has seen other companies follow in the POP MART model.
Even though POP MART is dominating the market with more than 75% of the market However, other companies have also benefited from the trend of designer toys. 52 Toys is one of them, with a focus on IP derivative toys. The company was established in 2015 but was only able to begin attracting investors in the year 2017 according to the CEO Chen Wei, thanks to the growth of the media industry. smaller brands that focus on IP, such as Ali the Fox are also seen a rise in popularity. International brands also have observed China increasing demand for games: LEGO and the Japan-inspired Italian brand Tokidoki have announced that they are planning big to target to enter the Chinese market.
A growing number of young adults are turning into designers toy buyers in China
Designer toys, also known as art toys are items of collectibles and toys designed by designers and artists which are generally made from vinyl and are based on pop culture stereotypes (hip-hop graffiti, hip-hop, Japanese Manga culture). A few years ago designers who collected toys in China were a small group. But, the landscape is shifting rapidly. A growing number of young adults are turning into designers toy buyers in China.
Chen Shaofeng, vice-dean of the Institute for Cultural Industries at Peking University, stated that the growing quantity of people buying designer toys in China is a result of the higher standard of living. The growing market for designer toys in China has demonstrated China’s young adults’ love of the arts and culture. However they’re keen to establish their own identity. The act of buying and collecting certain kinds of toys for art is a way to express themselves; a method to let people know about who they really are as well as what they enjoy. Although most designer toys are only available in a small amount and are priced expensive, they aren’t accessible or affordable for the majority of the toy lovers who are designer in China. Blind box toys made in China as a work of art at a reasonable price is now extremely sought-after on the market for designer toys.
What is a Blind Box what is its purpose, and how is it a hot topic in China?
Blind boxes look identical from the outside, however they feature a an exclusive minifigure inside. The insides are designed by various artists or designers. The plastic figurines in palm size are wrapped in opaque polybags, and are sold in separate blind containers (Chinese:Mang He ). In general, each series is made up of 12 characters. Twelve blind boxes form one package, while 12 packages make up one box. This means that one carton includes 144 minifigures and 12 different designs are distributed randomly.
In each of the 12 styles there will be one minifigure selected as a mystery style and there will only one figure of each of the blind boxes. This is why blind box collectors from purchasing additional boxes to add to their collection. Since you never know which item you’ll purchase, those who want to finish their collection could purchase all 144 blind boxes in one go. The majority of blind boxes are sold for the same price, the same price of 59 RMB (8 dollars) which is expensive for a hand-sized plastic doll, but not costly enough to make collectors in the habit of buying the same thing over and over. In 2011, around 4,500,000 pieces of Molly among the top sought-after characters in blind boxes in China were sold.
The economic blindbox in China
Additionally, there will be limited series (limited quantity and time) of characters like Popmart Molly that are exclusive to a particular occasions like holidays like Christmas and Chinese New Year for the same price, and there is no extra cost for limited edition holiday specials. Some collectors have even gathered at the front of the shops all night.
Designers who are consumers of toys in China frequently showcase their collection through social networks. They also exchange and discuss dolls through online communities for toys like PAQU (Pa Qu ) or the secondhand marketplace such as Xianyu (Xian Yu ) from Alibaba. Dealers also make huge profits by selling the popular blind boxes they have amassed. The cost of a second-hand market is based on a variety of aspects, e.g. the volume of production of the same series of blind boxes, the ratio of mystery style to regular styles (normally one-fourth of 144) and so on.
What is POP MART? (Pao Pao Ma Te )?
As per POP MART itself, it is a retailer of lifestyle goods with a brand philosophy of “MAKE something fun!”. POP MART was founded in 2010 and was able to sell a wide range of lifestyle goods, such as toys, home, digital beauty, and more. In recent past, POP MART has discovered the unsatisfied need and passion for designer toys in Chinese teens. Since that time, POP MART has changed its approach and changed its focus towards the market for designer toys in China.
Prior to when POP MART began to only work with designers blind boxes were sold through various channels, including stationsery stores or toy stores. Presently, POP MART gives designers the opportunity to avail an “all-inclusive services” from production through distribution to marketing. Additionally, POP MART is running more than 30 stores in exquisite shopping malls across 14 cities across China. It also operates more than 200 Roboshops (automated vending machines) throughout the country. The company launched it’s Tmall flagship store in 2015 and also introduced its APP in the year 2016.
POP MART told the toy chronicle in an interview earlier this year. It is the UK most popular designer vinyl blog for toys in the moment POP MART’s primary audience is 18 and 35. urban white collar employees and students. 75% of them are female. Wang Ning, the founder of Pop Mart says: “The market for designer toys in China is enormous and exciting.”
China Designer Toy Exhibition
POP MART is also behind the Beijing and Shanghai Toy Show. Around 300 of the top designers in China, Japan, South Korea and in the United States, and Europe were present at the most recent Beijing Toy Show 2019 in August. POP MART introduced designer toy exhibitions to China mainland through Beijing Toy Show 2017 (BTS). The exhibitions of art and toys have been influential throughout Asia. They not only provide the opportunity for fans to meet their favourite artists and purchase exclusive designer toys as well artists from different countries are able to come together and create many wonderful collaborations. For POP MART it’s the best method of identifying promising artists and discover collaboration opportunities.
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