Designer Toys in China: IP & Emotion

In recent years, “emotional value” has become a buzzword across Chinese social media, reflecting a shift in how consumers define value. This emotional economy is reshaping purchasing behavior—and few sectors have benefited more than designer toys. For Gen Z consumers, blind box surprises, collectible building blocks, plush companions, and anime-themed figures aren’t just products—they’re vessels for comfort, self-expression, and identity.

Data shows that, between 2019 and 2023, the Chinese designer toy market grew from RMB 21.1 billion to RMB 62.6 billion, with a compound annual growth rate of over 31%.

Source: chinabaogao.com

Unlike traditional functional consumption, this new wave prioritizes emotional satisfaction and spiritual connection. Consumers today are willing to pay a premium not just for what a product does, but for how it makes them feel. This change is powering rapid expansion in the designer toy market—and pointing to a broader transformation in China’s consumer landscape.

Check out our past articles related to the Emotional value in marketing:

Through in-depth analysis, Double V Consulting identifies three defining trends shaping this market’s evolution—each embodied by leading players like POP MART.

Trend 1:

IP as the Core—From Original Characters to Cross-Brand Collaborations

Frost & Sullivan projects China’s IP licensing market will reach RMB 156.1 billion in 2024, growing steadily at a CAGR of 13%. In the designer toy industry, IP isn’t just a buzzword—it’s the central engine of growth and competition.

Building Original IPs into Cultural Icons

Leading brands are systematizing the creation of original characters. POP MART, for instance, has cultivated IPs like MOLLY and SKULLPANDA into billion-yuan franchises. 52TOYS’ BEASTBOX—a mecha-themed transforming toy—has also found strong success, especially overseas.

Co-branded IPs as Brand Amplifiers

Strategic collaborations with global franchises have become standard. POP MART’s high-end MEGA series with Disney and the Louvre contributed 12.9% of its revenue. TOP TOY has worked with over 1,000 IPs, including Marvel and Sanrio, positioning itself as a hub for ACG (anime, comics, games) culture.

Founded in 2015, 52TOYS has embraced a mission of “Play Something Fun” with IPs spanning blind boxes, transformable robots, and action figures. From its It’s Me Lotso Bear series to collaborations with Crayon Shinchan, 52TOYS consistently tops e-commerce rankings.

Top selling products in 52TOYS Tmall flagship store

The company owns 15 original IPs—including Panda Roll, Nook, Kimmy & Miki—and holds licenses with international giants like Disney, Marvel, and Warner Bros. Beyond global partnerships, 52TOYS actively works with local cultural and animation IPs, bringing new creative life to traditional Chinese characters through articulated blind box figures.

52TOYS' self-owned IP and collaborations

Trend 2:

Broader Audiences, Richer Categories

Designer toys are evolving beyond blind boxes and Gen Z, reaching a wider audience through more diverse formats. According to a report from chinabaogao.com, blind boxes and model kits account for 36.6% of the market in H1 2024, while building blocks and figurines are gaining share, at 19.6% and 4.5% respectively.

Source: chinabaogao.com — *Source:* *chinabaogao.com*

Emotion-led Collectibles

○ Anime Merch (谷子)

Includes badges, acrylic stands, and plush keychains—popular with hardcore anime fans.

○ Figurines (手办)

Highly detailed display models, often based on characters or scenes. China's figure market reached RMB 5.26 billion in the first half of 2024.

○ Blind Boxes

Randomized packaging creates surprise and fuels the desire to collect full sets. Valued at RMB 13.3 billion in H1 2024.

Interactive Emotional Companions

○ Trading Cards

Collectible card games and non-playable cards attract hobbyists and collectors alike.

○ Plush Toys

Once seen as kids’ toys, plushies now resonate deeply with adult consumers. In 2023, Gen Z accounted for 43% of plush sales, millennials for 36%.

○ BJD & Soft Dolls

BJD (ball-jointed dolls) started in Japan but have grown into collectible, customizable art objects with loyal fanbases.

Representative Brand：TOPTOY

Launched by the Chinese leading IP-Design retailer MINISO in 2020, TOP TOY positions itself as a “global designer toy store,” with offerings that span blind boxes, building kits, figures, plush toys, and more. TOP TOY balances original IPs like NAMI and NOMMI with partnerships across 80+ leading franchises, from Disney to Honor of Kings.

*TOP TOY's self-owned IPs NAMI and NOMMI*

On March 22, 2025, the brand opened its first global flagship in Shanghai. This comprehensive retail experience features:

Level 1: Limited-edition plush and co-branded blind boxes

Level 2: Vinyl art toys and building blocks

Level 3: Chinese-style figurines and anime-themed products

By creating immersive, themed retail spaces, TOP TOY is redefining what offline toy shopping looks like.

Trend 3:

Technology Enhances the Toy Experience

Technologies like AI, AR/VR, and big data are elevating how consumers engage with toys, adding new layers of personalization, education, and emotion.

Example: “Ai Xiao Ban” x Milk Dragon

Developed by Yijia Yiban, “Ai Xiao Ban” is the first AI emotional companion robot for children aged 3–10. Created in partnership with viral IP Nailong (a cute dragon), it combines interactive AI with storytelling and educational features, wrapped in a soft, huggable design.

This “AI + IP” model is a glimpse into the future—one where toys can comfort, teach, and even evolve with their users.

POP MART:

Leading the Charge

POP MART is the most representative player embracing all three trends. By pioneering the “IP + blind box” model, it turned a niche hobby into a billion-dollar public company.

On March 26, 2025, POP MART released its 2024 annual report: revenue surpassed RMB 10 billion for the first time, reaching RMB 13.04 billion (up 106.9% YoY). Adjusted net profit reached RMB 3.4 billion (up 185.9% YoY).

Its product range spans figurines (major revenue souce - 58.3% of total revenue), plush, MEGA collectibles, and everyday merchandise. Non-blind box categories are contributing more, reflecting a mature, multi-layered IP ecosystem.

We summarized three key strategies behind POP MART's huge success:

Brand Strategy

Deeply Embedded in Gen Z Culture

POP MART’s success hinges on a nuanced understanding of Gen Z preferences—not just in terms of product, but also aesthetics, content, and lifestyle.

○Strong visual identity: From the dreamy fantasy world of MOLLY to the cyberpunk edge of SKULLPANDA, each IP delivers a distinct and instantly recognizable visual style.

○Digital-native communication: The brand actively engages on platforms like Xiaohongshu, Weibo, and Bilibili through storytelling and co-creation with fans. Artists, influencers, and toy reviewers help deepen fan attachment.

○Community immersion: Through offline exhibitions, fan meet-ups, and city-wide IP installations (e.g., Labubu-themed subway trains), the brand makes its presence felt across digital and physical spaces.

Product Strategy Multi-Layered, Multi-Format IP Operations

POP MART doesn't just sell toys—it builds an entire product universe around each IP, designed to support both casual buyers and core collectors.

○ Tiered product formats: From entry-level blind boxes to high-end MEGA collectibles and lifestyle goods, every product tier connects with a different consumer segment.

○IP lifecycle management: Characters evolve through limited editions, special collaborations, and seasonal series, keeping fans constantly engaged and eager to collect the latest drop.

○Blind box evolution: While blind boxes remain a cornerstone, their formats have evolved—now including articulated figures, transformables, and even story-based series that reveal a narrative over multiple releases.

IP Strategy

Ecosystem Expansion through Storytelling and Globalization

At the heart of POP MART’s empire lies a robust, sustainable IP ecosystem. The company not only creates original IPs but also continually refreshes and deepens them through storytelling, licensing, and global collaboration.

○ IP incubation: It has built over 30 original IPs, 13 of which generate more than RMB 100 million annually—and four have crossed the RMB 1 billion mark.

○Storytelling as core: POP MART uses comics, animations, mobile games, and immersive events to build layered narratives. This emotional depth gives each IP longevity and cultural relevance.

LABUBU's Xiaohongshu Official Account

○Cross-media & cross-category expansion: IPs aren’t confined to figures—they expand into fashion (e.g., SKULLPANDA apparel), jewelry (e.g., POPOP), and even animated content or stage shows.

*POPOP jewelry pop-up store in Shenzhen and Hirono apparel store in Shanghai*

○ International co-creation: Through partnerships with artists and studios from Japan, Korea, Thailand, and beyond, the brand ensures its IPs are culturally resonant in overseas markets.

*-LABUBU figure in Thai traditional outfits*

○ Immersive entertainment venues: From its new offline theme park “POP MART City Park” to in-app games like Dreamland, POP MART builds an interconnected world where fans can play, collect, and emotionally connect.

*-Dreamland mobile game launched by POP MARKT*

Conclusion: From Growth to Cultural Impact : :

As POP MART and its peers continue to scale, they aren’t just growing a market—they’re redefining how Chinese consumers connect with emotion and creativity.

Even in an era where some consumer sectors are seeing a slowdown, the emotional economy—driven by Gen Z’s quest for meaning, fun, and healing—continues to thrive.

With rising spending power and a taste for personalized experiences, young Chinese consumers are fueling an era of “spiritual consumption”—and designer toys are leading the way.

Double V Consulting is a marketing consultancy specialized in female consumer goods brands. We have been helping overseas brands navigate the complexities of the Chinese market since 2017. We specialize in creating strategies that resonate with Chinese female consumers, leveraging deep market insights and cultural understanding.

If you're interested in learning more about how we can assist your brand in understanding and connecting with Chinese consumers, don't hesitate to reach out by click the "HERE" link below.

Designer Toys in China: IP & Emotion

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