ASEAN Watch丨Can China's pop toys have another hit after Labubu?

By February 27th, Ne Zha 2 has raked in over 14 billion yuan, ranking as the eighth highest grossing film in global box office history.

Not just the film's box office is soaring, its merchandise also sparked a wave of consumer enthusiasm.

Pop Mart has hit the big time. Offline stores can't keep up with the demand for Ne Zha action figure blind boxes.

In Southeast Asia, young people are looking for online agents to try to get their hands on these blind boxes.

The last designer toy IP to go viral in Southeast Asia, was Pop Mart's eccentric "Chinese female celebrity" Labubu.

With its unique traits, and the boost from celebrity endorsements, the rabbit became a huge hit across Southeast Asia. Young people there love to share on Instagram and TikTok their collections and unboxing videos of Labubu, forming a unique pop toy socialising culture.

Southeast Asian market has become the battleground for Chinese cultural and creative firms to conquer. Ye Guofu, founder of MINISO, once shared his wisdom: "Expanding overseas should start with easier markets and gradually move to more challenging ones. The large Chinese-origin population in Southeast Asian countries, plus low labor costs and the proximity to China, make it an easier target before venturing into Europe and North America."

With the growing young population in Southeast Asia, local spending power is on the rise, and there's a growing demand for cultural and creative products.

Many Chinese companies naturally see the region as a springboard for global expansion.

Someone might ask, Was the popularity of China's pop toy IPs just a coincidence?The answer is clearly no.

They don't just license any IP available in the market, but strive to incorporate diverse styles of Chinese culture into IP design.

Using products with Chinese characteristics, they have differentiated themselves from other global brands in competition.

Chinese designer toy companies have engaged in secondary creation based on intangible cultural heritage, cultural relics, and classic historical literature, creating amazing pop toys.

As people worldwide become more receptive to Chinese culture, such IPs find it easier to gain popularity.

The value of Chinese cultural products is vividly demonstrated in overseas markets.

As the initial excitement fades, these companies start to thinking about how these "Chinese specialties" can retain their lasting appeal.

Practitioners are increasingly realizing that innovation is the cornerstone of pop toy IPs, and the key to overcoming cultural barriers between China and foreign countries.

After tapping into traditional Chinese cultural elements, they infuse Chinese cultural genes into their products through multi-dimensional innovations in content, technology, and cultural integration.

Only by creating products with unique cultural characteristics, can China's pop toys evolve from blockbusters to timeless classics.

Chief Producer: Yu Xiaona

Reporter: Hu Huiyin

Editor: Li Yingliang

Video Editor: Xiao Hang