A look at China’s $8.8 billion collectible toy market

The collectibles market took off in the last decade and continues to grow, according to reporting by Jing Daily, with blind-boxes a key demand-driver.

Why it matters

Currently worth $5.9 billion and set to reach $8.8 billion in two years’ time, the trend reflects the potency of young people’s growing disposable income which at the upper end has powered China’s emergence as a hotspot for the luxury category.

But it also illuminates the status-broadcast nature of this consumption: blind boxes that hold the promise of collectibles create an inherent tension that plays well on social media. Better still, people appear happy to repurchase if they don’t get what they’re looking for, with market leader Pop Mart claiming a repurchase rate of up to 58%.

The details

• Pop Mart is the largest and highest profile of the companies pursuing this trend.
• Tmall data quoted by Jing Daily suggests there are around 200,000 buyers spending more than $3000 on blind boxes.
• Luxury businesses are cottoning on to the trend with some firms either deploying a blind-box lottery via WeChat.
• There are signs that the market is now slowing, however, suggesting that this tactic may enter the toolbox of marketing rather than remaining a standalone business opportunity. Many businesses are now piling in on the trend, spelling trouble for Pop Mart as its advantage erodes.

Sourced from Jing Daily. Image: Pop Mart