Chinese trendy toys increasingly popular in Southeast Asia

Chinese trendy toys have become a sensation in countries in Southeast Asia. Recently, a toy named LABUBU, an intellectual property (IP) created by Chinese cultural and creative company POP MART, with pointed ears and serrated teeth, has become a top seller in Thailand, with people queuing up in long lines and waiting at online shops to make a purchase. Boosted by recent visa-free policies, many people in Thailand are even traveling to China to buy LABUBU toys.

The popularity of LABUBU caused a frenzy at Bangkok's Suvarnabhumi Airport on the afternoon of July 1. Thai fans, in white LABUBU T-shirts, eagerly awaited the arrival of the doll, chanting its name excitedly. As a lifesize LABUBU made its way toward the crowd with adorable steps, fans were thrilled to interact with it. The scene was reminiscent of a celebrity sighting, with fans clamoring to get a glimpse of their beloved toy. Toffie, a 35-year-old fan who was among the 100 Thai fans at the airport, revealed that she had arrived several hours early to ensure she didn't miss the opportunity to meet LABUBU.

The popularity of LABUBU has exceeded commercial expectations. On the same day, Thailand held a welcome party for LABUBU and bestowed upon LABUBU the title of amazing Thailand experience explorer. The picture of LABUBU at the airport made the front page of the Bangkok Post the following day.

LABUBU are elves living in the forests of Northern Europe, created by POP MART artist Kasing Lung. LABUBU have nine teeth, pointed ears, and are known for being naughty and optimistic. LABUBU, along with their elf friends, make up THE MONSTERS, and have gained a large following globally.

In April, Thai star Lisa shared a picture on Instagram of herself with a LABUBU, which led to a surge in popularity for the toy in Southeast Asia. The flagship store has seen long queues, and products sell out immediately during live broadcasts. A LABUBU toy that was originally priced at 99 yuan ($13.6) in China is now being sold for 2,590 Thai Baht (512 yuan) in Thailand.

Due to the popularity of LABUBU, many Thai tourists in China buy the toys as souvenirs for their friends back home. Xiao Tong, a Chinese woman working in Bangkok, told the Global Times that during a lucky draw event organized by the company, the first prize was a smartphone and the third prize a LABUBU. Many of her Thai colleagues were hoping to win the third prize, she said.

Another fan from Thailand is 32-year-old Borwang. "We Thai people all love fluffy things," Borwang told the Global Times. She and her Thai colleagues even bring LABUBU toys to their workstations. "When we are tired from work, we talk to the LABUBU and tell it how tired and hardworking we are. Looking at LABUBU, we quickly regain our energy. The adorable LABUBU provides spiritual support for many Thai workers."

On the streets of Thailand or on public transportation, it is common to see Thai people carrying bags adorned with small toys. Toffie said that Thai people enjoy carrying toys that are easy to put on bags, with many opting to bring along their favorite LABUBU toy in their lucky color.

In addition to POP MART, Chinese toy brands like 52TOYS have also seen success in Thailand. In December 2023, 52TOYS opened stores in Thailand and its line of beast box toys quickly sold out. The first month's revenue reached 3 million yuan.

Other brands including Heyone, HIDDEN WOOO, WAZZUPbaby, LAMTOYS, ToyCity, SankToys, dodowo, KKV and MINISO are also exploring the market in Southeast Asia.

According to data from German data company Statista, the toy market in Southeast Asia is projected to reach $5.64 billion in 2023 and is expected to grow to $6.52 billion by 2028.

Industry insiders believe that factors such as similar consumer habits and preferences to China, rapid economic development, and large Chinese populations make Southeast Asia a key focus area for many domestic trendy toy brands looking to expand overseas.

Wen Deyi, president of the international division of POP MART, told the Global Times on July 4 that Southeast Asia has a population of over 600 million, with a large number of young people and tremendous potential. In April, POP MART's revenue from the Southeast Asian market exceeded that of the East Asian market.

The 11 countries in Southeast Asia have a total population of 670 million, and in Indonesia, Malaysia, the Philippines, and Vietnam, over 50 percent of the population is under the age of 35.

Thailand and Vietnam have more females than males, and women have stronger consumption willingness, making these two countries a priority in recent years.

In terms of consumer habits, there are many Chinese communities in Southeast Asia who are heavily influenced by Chinese consumer preferences, making them more receptive to trendy toy products.

Currently, POP MART has opened offline stores in Singapore, Malaysia, Thailand, and Vietnam. Wen said that "Southeast Asia attracts a large number of tourists, bringing substantial retail income not only from locals but also from tourists. We will continue to expand in Southeast Asia's tourist cities in the future and we expect Southeast Asia to become the fastest-growing market."

In early December last year, 52TOYS opened its first store in Thailand, in the high-end shopping mall The Emphere in Bangkok, marking the beginning of 52TOYS' investment in Southeast Asia.

52TOYS told the Global Times on July 3 that Thailand has become a major market for domestic trendy toy brands seeking to expand overseas, mainly due to the high percentage of young people in Thailand and their strong consumption power, as well as the existing popularity of trendy toys and local designers in the Thai market.

Although having a similar culture can help a brand enter a new market, breaking into a local market still poses some challenges.

In several malls in Malaysia, the Global Times observed that the majority of customers purchasing trendy toys were of Chinese descent, and the packaging of the products was mostly in Chinese.

A store employee named Alice told the Global Times that local people often inquire about the significance and meaning behind the toys. Additionally, the prices of blind boxes are not cheap, which may deter individuals with average incomes in developing Southeast Asian countries.

In addition, there is a rising trend of local toy brands in Southeast Asia. Mighty Jaxx, a toy brand founded in Singapore in 2012, has experienced rapid growth. The brand has had a long-term collaboration with popular classics such as Garfield and SpongeBob SquarePants, and its products are now sold in over 60 countries and regions worldwide.

Adapting to local market

Adapting to local conditions and tapping into more markets is crucial for the expansion of trendy toys. Most trendy toy buyers are over 15 years old, and social media is a key driver of demand.

By collaborating with Key Opinion Leaders (KOLs) and the media through platforms like Instagram and Facebook, companies can expand their reach in new markets. Additionally, participating in overseas industry exhibitions and setting up pop-up stores through overseas distributors can enhance product and brand exposure, strengthening a brand's international influence.

Collaborating with local authorities and exploring broader cultural and tourism markets is also a new strategy. Working with popular toy companies to create welcoming ceremonies at airports can help create special experiences and encourage people to learn more about Thai culture.

Moreover, nurturing local IPs can serve as a breakthrough for entering other Southeast Asian markets. By helping local artists incubate their IPs and promoting them globally, companies can create more commercial value. The CRYBABY, another IP under POP MART, created by local Thai artist Molly, is also favored by local people. POP MART said it hopes to help more local artists create their own IPs.

Incorporating more local culture into trendy toys can increase the acceptance and popularity of new products. For example, a special Singapore LABUBU based on Merlion received a warm reception locally, with many users sharing photos of themselves with the toy at the Merlion statue on social media. 52TOYS also added some Thai clothing to its original IP Panda Roll to cater to the Thai market.

Furthermore, continuous product design upgrades are essential. Toffie said that when she first saw LABUBU some six years ago it was not so cute as the current version, adding that the current appearance is more in line with Thai people's aesthetic preferences.

Companies need to constantly improve their designs to meet the evolving tastes of consumers. While trendy toys like LABUBU have gained popularity in Thailand, there is still a need to expand into more affluent markets.

52TOYS believes that in order to establish a presence in Southeast Asia, it is necessary to penetrate the Singapore market. This is because Singapore has influential and radiating effects on the entire Southeast Asia region, and the brand can build brand awareness throughout Southeast Asia through the Singapore market.