Gifts / Sports & Toys

According to the observation report of Huacheng import and export data, the hot game market is returning from "wild consumption" to "rational consumption". In different second-hand trading platforms, many young people are retreating from the pit and changing hands.

Why is Chao Play not so popular?

Chaoplay is entering a new stage of development. The blind box product was once favored by young people. On a second-hand trading platform, many children were eager to transfer the blind box, and the cost of blood return. Among them, the "ordinary baby" with a price of 68 yuan can be bought for more than ten yuan.

According to the import and export data of Huacheng, the net profit showed negative growth for the first time since the listing. According to the profit warning issued by Bubble Mart in the first half of 2022, the announcement shows that Bubble Mart expects its revenue growth in the first half of the year to be no less than 30%, and its profit will decrease by up to 35% year on year.

Although the company classified the fluctuation of performance as affected by the epidemic, it suspended a number of offline stores and robot stores in some regions (mainly in the first and second tier cities). At the same time, due to the timeliness of logistics in some regions, online sales were affected, and the passenger flow and consumer spending intention were weakened during the period. However, the deeper impact is that the purchasing power of young consumers has declined significantly during the overall economic downturn, especially for the "non rigid demand" products such as blind boxes.

However, some insiders directly pointed out that the gambling nature of the blind box is obvious, and the pipeline like products do not have enough "scarcity", especially when the IP is not strong enough, the handicrafts are not worthy of collection. Moreover, in the past two years of market education, the "blind box+IP" game is no longer new, and consumers are returning to rationality, Huacheng Import and Export Data Observation reported.

For the past two years, Chaoplay is no longer popular. Chaoplay merchants think that the greater reason is the homogenization of products and serious industry involvement. Influenced by the epidemic, the "Tidy Play Exhibition" has been greatly reduced, but businesses need new popular IPs to tap a new generation of designers to bring consumers a bright feeling.

At the same time, many businesses have targeted the opportunity to IP licensing. However, with the rapid growth of the hip-hop market, all walks of life have entered the hip-hop market, leading to "IP competition volume" and low price competition. The price of well-known IP is rising, and the industry competition is becoming increasingly fierce. It is worth noting that since last year, some Chaoyou enterprises with weak brand strength have faced the pressure of survival, and many businesses have also experienced the phenomenon of overstocking.

Where is the way out for the Tide Play Market?

Compared with Disney, although it does not deliberately layout the hip-hop market, the Star Delu and Lingna Belle launched from time to time can be said to capture the traffic password of the industry. What is the way out for Chaoplay brands without IP stories?

On the one hand, explore the collection business of Chaoplay. In recent years, Bubble Mart is eager to get rid of the label of "blind box". In 2021, Bubble Mart launched the MEGA collection series of high-end fashion game product line, and established the inner flow, a fashion art promotion organization, to move forward to the collection of fashion games with smaller audience and higher value; 52 TOYS is positioning the brand as a "collection toy" and opening up multiple product lines, including BOX Metamorphosis Robot Series, Super Activation Series and DEARMAIR.

You should know that in the field of "collecting toys", only blind box products are not enough to form core competition and pass through the cycle. Be rbrick, the veteran IP brand of the reference fashion game circle, has developed to the 40th generation, produced more than 7000 models, and continuously cooperated with major brands, artists, well-known IPs and celebrities, which has also established its position in the hearts of fashion lovers.

On the other hand, layout overseas markets. According to Bubble Mart data, by June 2022, the channel has spread to seven core regions. Since this year, Bubble Mart has opened its first local retail store in London, England and Auckland, New Zealand; In June, Bubble Mart opened its first flash store in the United States; For the overseas market, Bubble Mart pays special attention to it. The 2022Q1 teleconference mentioned that it is expected that the overseas revenue this year will be 2-3 times that of last year, and it is hoped that the overseas revenue will reach 50% of the overall revenue in the future.

According to the observation report of Huacheng's import and export data, as early as 2017, 52TOYS also started authorizing overseas agents to enter Japan, Southeast Asia, Australia, the United States and other markets. In 2021, the total sales of its fashion game products, Amazon Japan, increased by 300% year on year. ToyCity uses cross-border e-commerce, distribution and overseas agency models to sell overseas.

From the perspective of the whole Chaoyou market, Chaoyou enterprises are seeking greater survival opportunities whether they return to the essence of collection or actively explore overseas markets. However, for the overseas market, the United States and Japan are more mature, with many entrants. Bubble Mart and 52TOYS are still difficult to jump out of the fierce competition pattern. Where is the next opportunity for the brand to cool down the blind box? Huacheng Import and Export Data Observation Report.