Why can the global trendy toy market grow against the trend?
It is worth noting that collectible toys, with sales increasing by 5%, accounted for 18% of the toy market sales and 15% of sales. Product lines for all age groups (which can be understood as overseas toy companies expanding into the field of trendy toys) such as trendy toy building blocks, mini dolls, trading cards, trendy toy plush, etc. are in the limelight. Among them, the international representative of trendy toy building blocks - LEGO Plant Series (LEGO Botanicals) has achieved remarkable results and become the fastest growing IP, driving the building block category to increase by 14%, becoming the category with the largest increase. This is the fifth consecutive year of growth in the building block category.
The overall toy market size will reach US$5.64 billion in 2023 and is expected to grow to US$6.52 billion by 2028. As an emerging sub-segment, trendy toys have shown a rapid growth trend in recent years. The rapid development of a number of trendy toy companies represented by TOY in Southeast Asia and the popularity of various local comic exhibitions and trendy toy exhibitions are clear evidence.
Trendy toys are a carrier for fighting anxiety (such as various slow rebounds and pinching games) and a tool for building social currency (such as the now popular "Nezha"). From another perspective, aren't trendy toys the "little happiness" of young people in this era full of uncertain variables?
The popularity of small-sized products in the market: For the same product, if the packaging is designed to be more compact, it can save packaging and warehousing and transportation costs, and the price can naturally be reduced; launching a smaller version of the original hot-selling product not only has the above-mentioned cost advantages, but also can attract groups that were reluctant or unable to afford it due to high prices, expand the consumer circle, and kill two birds with one stone. So, from the perspective of consumers, in the economic downturn, spending less than before can get the same as in the past. Why not do it if you are having similar happiness?
Popular IP increases the possibility of hot sales. This is why popular big-name IPs and classic IP authorizations have been sought after in the past two years. However, this has also caused a shortage of big-name IP resources. The competition for long-established IPs such as Pokémon, Star Wars, Disney, Marvel, Harry Potter, Sanrio, Conan, and Dragon Ball is extremely fierce. The copyright holders continue to "squeeze" the surplus value of old IPs through live-action remakes, sequels, and even magic changes, which also puts great pressure on the licensees.
If the company does not have the financial resources of the first echelon, it will start to consider starting with emerging games and social media, tapping into popular IP resources on mobile games, YouTube, and TikTok to break through. The logic of doing this is that in an era of segmented demand and differentiation of circles, it is not necessary to please all the public, but only to serve the corresponding groups. For example, Moose Toys and Jazwares, two young toy giants with excellent market insight, have recently reached various authorization cooperation to promote trendy toys. The IPs of the cooperation are mostly born on social media platforms, young but with a certain fan base. For example, Moose Toys cooperated with YouTube's popular black online comedy "Magical Digital Circus", and Jazwares cooperated with Italian individual artist fashion brand tokidoki.
The flow experience of action and the sense of accomplishment of gaining something. Different from the trendy toys influenced by blind box culture, which prefer purely static doll ornaments, the overseas pan-tide toy field is also popular with DIY play, which emphasizes a flow experience of hands-on and brain-involved full-hearted participation. The success of the Lego Big Kids series is a good example, not only because it has various themes such as humanities and arts, luxury car racing, and trendy culture to meet the preferences of different consumers, but also because the immersion in the hands-on assembly process and the sense of accomplishment brought by the completion of the work are the sources of emotional value.
From a broader perspective, farm gardening, gourmet cooking, and weaving handcrafts are all hot-selling categories on the Amazon platform in 2024. MGA Entertainment's Miniverse Workshop series uses hands as a carrier, and is covered with the "skin" of various hot topics and trendy IPs to provide an immersive hands-on experience. At the same time, the finished products can also be used as ornaments for players to appreciate and provide a sense of accomplishment to show off. This series, like the LEGO plant series, is also one of the five product lines with the largest growth in 2024.
The counter-cyclical growth of trendy toys confirms the upgrade of "Maslow's needs" - when material satisfaction reaches the threshold, spiritual consumption becomes a new rigid demand. Although the budget is limited, people are not machines, and emotional needs still have a place. In the future, whoever can continue to create emotional resonance will be invincible in the trillion-dollar market.
Trendy toys rely on IP. According to data from Circana, an international market research company, in 2024, the overall toy market sales in 12 countries including the United States, the United Kingdom, Germany, France, Italy, Spain, the Netherlands, Belgium, Canada, Australia, Brazil, and Mexico will fall slightly by 0.6% year-on-year, but at the same time, the sales of licensed toys will increase by 8% year-on-year, accounting for 34% of the overall toy market. This is the sixth consecutive year of growth in the market share of licensed toys.
