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What is the market development trend of China's trendy toy industry in 2021?

Trend toys refer to toys that cleverly integrate trend culture and content. Trendy toys cover a wide range of products, including blind boxes, figures, GK figures and adult assembled toys. Traditional toys are usually for children to play, while trendy toys are targeted at young people aged 15 to 40 who are pursuing emotional value from expressing their personality and attitudes and sharing their love with others. Traditional toys are mainly sold on a large scale and have a collection value. Limited or zero, and trendy toys are occasionally sold in limited editions, which have a certain collection value. 1 Market size China’s trendy toy retail market is still in its early stages and has proven its rapid growth rate in the past few years. The market size of China's trend toy retail increased from 6.3 billion yuan in 2015 to 20.7 billion yuan in 2019, with a compound annual growth rate of 34.6%. The popularity of Chinese trendy toys is getting higher and higher, and it is expected that there will be a substantial growth in 2021, with a market size of 36.6 billion yuan. Data source: Toy Association, International Licensing Industry Association, and China Business Industry Research Institute. 2 Fashion toy IP authorized Fashion toy retail is now the main monetization method of fashion toy IP. Successful IP has significant commercial value far exceeding its original form. As the leading trendy toy IP has become popular among fans, authorization and adaptation provide additional opportunities to realize the value of trendy toy IP to a wide range of areas, such as licensed products (except toys), advertisements, video games, movies, and comics Books etc. Trendy toy IP operators may authorize other companies to adapt their IP in digital games, movies, drama series, TV shows and cartoons for commercial applications. Data shows that the Chinese IP-adapted entertainment market grew at a compound annual growth rate of 21.8% from 2015 to 2019, reaching 308 billion yuan in 2019, and the total market size is expected to reach 403.9 billion yuan in 2021. Data source: China Audiovisual and Digital Publishing Association, China Commercial Industry Research Institute 3 Future development trends 1. Focused and growing fan base Trend toys are infused with consumer-familiar trend culture content, while possessing fashion design and aesthetics Value can be held for display, collection or exchange. Trendy toys often bring a sense of pleasure and companionship, and make consumers feel comforted and comfortable. Fans can express their unique lifestyle and social status by purchasing different trendy toys. With the continuous expansion of the loyal fan base, China's trendy toy retail market is also rapidly growing. 2. From the niche market to the mainstream market In recent years, in the context of encouraging diversification and individualization, people all over the world have adopted a more open and enthusiastic attitude towards all kinds of trend cultures that belonged to the niche in the past. In addition, the design of products such as blind boxes and the distribution network developed by the industry make trendy toys more suitable, affordable and more accessible to fans, thus further leading the trendy toy market into the mainstream market. 3. The continuous release of blockbuster IPs With the development of China's pan-entertainment market, the number of blockbuster IPs that have been released and promoted continues to increase, which in turn leads to a higher demand for trendy toys developed based on such blockbuster IPs. High-quality content and IP also create opportunities for cross-industry collaborative creation to attract more fans. 4. Increasing disposable income and consumption power Disposable income and living standards have continued to rise for decades, and China's overall consumption pattern has undergone earth-shaking changes. Chinese consumers are pursuing more refined lifestyles and paying more attention to the quality of goods and the emotional satisfaction they bring, thereby increasing the purchase of trendy toys.

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