Gifts / Sports & Toys

Recently, the leading domestic trendy gaming company, Bubble Mart, has once again increased its focus on the high-end market. On February 25th, Bubble Mart launched a high-end line product online and offline. This is the first ceramic MEGA launched by Bubble Mart. According to Huacheng Import and Export Data Observation, Bubble Matte and Fashion Artist Flammable jointly launched a series of high-end MEGA products, which are very exquisite in craftsmanship. They are all handmade by Jingdezhen ceramic craftsmen, integrating the gold repair process and curium porcelain technology of ceramic products, and only 160 products are available worldwide.

It is worth mentioning that 160 ceramic SPACE MOLLY models priced at 19999 yuan have been sold out through lottery. At a fashion auction before that, the special edition of the manuscript sample signed by Bubble Mart with "Mastery&Burn" was sold at a price of 230000 yuan, making it the highest transaction record in the global auction of single items of Chinese fashion toy collections.

Whether it's creating momentum at trend auctions or combining Chinese cultural characteristics to create high-end ceramic MEGA, it's a reflection of Bubble Mart's attempt to break away from the external label image of a single blind box and seek the possibility of future growth.

Develop high-end market,

Can there be a new wave of craze?

Turning to Bubble Mart's financial report for the first half of 2022, we can see that the halo of "Blind Box First Stock" no longer exists, and we have handed over our worst report card since going public. Last year, when the epidemic hit hardest, Bubble Mart's net profit fell year-on-year for the first time. The financial report shows that the company's revenue in the first half of the year was 2.359 billion yuan, up 33.1% year-on-year; Net profit recorded 332 million yuan, a year-on-year decrease of 7.2%.

In terms of IP revenue contribution, SKULLPANDA and Molly achieved revenue of 462 million yuan and 404 million yuan in the first half of 2022, respectively, accounting for 19.6% and 17.1% of the total revenue. From the perspective of revenue contribution, Bubble Mart is trying to shake off its dependence on Molly. According to the Huacheng Import and Export Data Observation Report, from 2017 to 2020, Molly's revenue accounted for 89.4%, 62.9%, 32.9%, and 14.2%, respectively. However, in addition to SKULLPANDA, IP addresses such as The Monsters and PUCKY are also difficult to replicate Molly's success.

In addition, according to Huacheng Import and Export Data Observation, compared to the IP derived from classic animation, film and television, and game images, IP without story attributes is more likely to fade out of the market in industry competition. Last year, game manufacturers alone accounted for half of the popular Tmall 618 gaming list, with Miha Tours occupying two seats, respectively ranked top 4 and top 6. In the category of trendy games, industry leaders such as Tencent and NetEase continue to compete, further squeezing their otherwise small market share, and the pressure on Bubble Mart has also multiplied.

With the decline in the popularity of the trendy gaming market, Bubble Mart is making frequent efforts in the high-end market. Can it set off a trendy gaming craze again? Or where is the new breakthrough in the trendy gaming industry?

From the perspective of consumer demand, the mainstream consumer groups in the hip-hop market are mainly young people or anime consumer groups. According to the 2021 Generation Z "Tidal Power" Insight Report by the Mob Research Institute, more than 40% of Generation Z will spend more than 1000 yuan per year to purchase handmade Tidal Games; Nearly 70% of Gen Z said that buying handmade fashion toys is for collection purposes. This means that there is still great potential to be developed in the domestic trendy game market, such as developing collectible products such as dolls, locomotive models, and mecha models. Huacheng Import and Export Data Observation reports.

Currently, the trendy gaming market is showing a high-end trend, and this change is largely driven by consumer demand and various trendy gaming brands. For example, as early as 2021, the company launched a high-end fashion game product line, "MEGA Collection Series," with a selling price of 4999 yuan. This initiative successfully attracted a group of male fans. Before that, the proportion of female users, the main consumer of Bubble Mart, exceeded 70%. According to Bubble Mart's semi-annual report, in the first half of 2022, the revenue was 2.359 billion yuan, of which the MEGA Collection series revenue was 193 million yuan, exceeding the revenue generated by the series throughout the previous year. Compared to the contribution of the blind box, although Dawa's growth is commendable, its scale is still weak.

It is worth mentioning that Bubble Mart also explores more value in different fields. In January 2022, Bubble Mart Strategy invested in the Australian trendy gaming brand Underwerse, and in February invested in Shanghai Cycling Network Technology Co., Ltd., which focuses on card collections. In addition, after the tidal game business hit the ceiling in the local market, Bubble Mart shifted its focus to overseas markets, seeking new growth space. Currently, the international business of Bubble Mart has settled in 25 countries and regions around the world, and Huacheng Import and Export Data Observation reports.