Despite the overall weakness of the Chinese economy and consumers cutting back on non-essential spending, the art toy market is experiencing robust growth. This trend reflects a shift in consumer habits; although overall expenditure is decreasing, enthusiasm for products with emotional and cultural value remains high.
According to the "Art Toy Industry Development Report (2023)" released by the Institute of Finance and Strategy of the Chinese Academy of Social Sciences, the market size of China's art toy sector has surged from 6.3 billion yuan in 2015 to 34.5 billion yuan in 2021, with projections to exceed 110 billion yuan by 2026. This indicates that the art toy market is not only expanding rapidly in quantity but is also gradually becoming a trillion-yuan industry.
The core appeal of art toys lies in their unique intellectual property (IP) collaboration culture. Many consumers have strong emotional connections with specific characters from art toys, such as nostalgic anime figures or classic movie icons. For them, art toys are not merely items; they are extensions of personal feelings and memories.
The emotional and cultural value embedded in art toys is a key driver of their sustained growth. Many consumers purchase specific series or characters because these IPs resonate with their personal experiences. For instance, the post-80s and post-90s generations are keen on collecting characters from their childhood, such as "Crayon Shin-chan," which evokes fond memories. Younger consumers, on the other hand, use art toys to express their individuality and attitudes.
The designer culture surrounding art toys is also a significant attraction for consumers. Art toys do not simply replicate IP characters; instead, they breathe new life and artistic value into them through design. Consequently, art toys have become a platform for designers and artists to express their creativity.
In a challenging economic environment, products with emotional value are more likely to be favored. Compared to expensive luxury goods, art toys are relatively affordable, making them a more accessible way to satisfy emotional needs.
The rapid development of the art toy industry is reflected not only in the increasing consumer demand but also in the expansion of the industry structure and market scale. Pop Mart, as a leading brand in the art toy sector, has achieved remarkable growth in recent years. In 2023, Pop Mart's revenue in the Chinese market reached 5.235 billion yuan, a year-on-year increase of 25.8%; in the first half of 2024, revenue reached 3.21 billion yuan, growing by 31.5%.
As consumers are willing to invest more in art toys, the entire industry is swiftly moving toward a trillion-yuan scale. The report indicates that the age demographic of art toy consumers is gradually shifting downward, with younger consumer groups becoming a significant driving force in the market.
More companies are positioning IP collaborations as the core of their business model, driving the rise of the IP-based art toy economy. Miniso has transformed from its initial "pseudo-Japanese" model to a brand focused on IP collaborations, covering both art toys and everyday household goods.
Miniso's financial report reveals that in the first half of 2024, it opened 189 new stores, achieving revenue of 7.76 billion yuan, a year-on-year growth of 25%. IP-related products account for nearly 30% of total sales, with a year-on-year increase of nearly 40%. IP collaborations have become an essential means to attract consumers, enhancing product value and driving sales growth.
Miniso's art toy brand, TOP TOY, has performed impressively, opening 47 new stores in the first half of 2024, with significant increases in revenue and pre-tax profits, meeting consumer demands for personalization and design.
In addition to the thriving domestic market, Chinese art toy companies are beginning to focus on overseas markets. With increasing acceptance of trendy culture in the international market, overseas consumers are showing great interest in Chinese art toy products. Pop Mart and Miniso have accelerated their international expansion efforts, seeking to enhance their global brand influence.
Despite the uncertain global economic outlook, the growth potential of the art toy market remains enormous. Art toys, which fulfill emotional needs and hold collectible value, continue to be an important component of consumption upgrades. As the IP retail industry matures, the art toy economy is poised for even more development opportunities.