CHINA FASHION BUSINESS

▼The following discussion and summary from the Coldy Fashion Circle address industry-related issues. These insights are the product of collective wisdom and do not represent individual opinions. The aim is to benefit industry professionals.

IP Incubation and Brand Storytelling—From Single Products to Cultural Symbols

1. Evolution of Cross-Border Collaborations—Pop Mart × Beauty/Luxury Collaborations vs. Fashion Industry’s Overuse of Collaborations

The trendy toy market is rapidly expanding. Brands like Pop Mart have created unique consumer experiences through blind boxes. In office settings, young employees often display cartoon figurines on their desks, eagerly follow Pop Mart’s new releases, and rush to purchase them immediately. These consumers also form exchange communities, swapping duplicates or unwanted collectibles through dedicated channels.

Trendy toys now transcend traditional definitions. They are cultural products rooted in trend culture, meticulously designed by artists and designers, infused with cultural depth and creative flair. For example, the collaboration between New Pants Band and Pop Mart—the MAGICBUS✖️北海怪兽 (Beihai Monster) figurines—was launched via limited offline sales at a bar with the band’s lead singer present, while online stocks sold out quickly.

Cultural resonance is particularly strong among younger generations. Pop Mart’s flagship stores are ubiquitous in malls, and its vending machines are even found in subway stations. Its star IP, PINO JELLY—a soft, round-cheeked “gummy boy” blending cuteness with edgy aesthetics—embodies the idea of embracing authenticity. Its collaboration with Mistine on makeup products, themed “Emotions Belong to Me, No Masks,” perfectly captures young women’s dual demand for trendy toys and beauty.

In contrast, the fashion industry faces challenges in innovation. Some suggest adopting blind box models for apparel but must address sizing and style mismatches. Proposals include: starting with accessories like gloves or hats (which are size-flexible); adding creative twists to basic designs; or including redemption cards in blind boxes for in-store try-ons.

2. Long-Term IP Incubation—Pop Mart’s Designer Incubation Model vs. Fashion’s Reliance on External Designers

Digital transformation offers new opportunities for fashion. At Spring/Summer 2025 ordering meetings, many brands showcased virtual runway garments to highlight digital brand identities. While 3D modeling is now common for medium sizes, future advancements may enable full-size virtual try-ons. Companies like Alvanon offer digital mannequin services, though costs remain prohibitive for SMEs.

Pop Mart’s IP incubation model stands out. They partner with global independent designers through long-term contracts that retain creative autonomy while securing IP rights. This co-creation model provides designers with funding and market feedback, while Pop Mart leverages its distribution network to scale successes. For instance, designer Xiong Miao’s SKULLPANDA series—a blend of futurism and dark aesthetics—achieved remarkable success.

Meanwhile, the fashion industry grapples with frequent designer turnover. Dior, for example, cycled through five creative directors in a decade—from Raf Simons’ minimalism to Maria Grazia Chiuri’s feminist ethos—resulting in inconsistent brand identities. Many established designers later launch eponymous labels, leading to homogenized styles.

Emerging models, like Han Du’s team incubation approach, show promise. Teams of 3-4 designers release small-batch collections on the company’s platform; top performers scale into independent divisions. Though competitive, this boosts product refresh rates and market responsiveness.

3. Narrative-Driven Scenario Marketing—The “Unboxing Ritual” of Trendy Toys vs. Fashion Shows and Pop-Up Experiences

As consumer values shift, Chinese cultural IPs are rising. From 1980s Shanghai Animation Film Studio classics to 1990s Western/Japanese anime dominance, and recent hits like Ne Zha, China’s cultural confidence is growing. This signals 2025 as a potential breakout year for domestic animation IPs, though global recognition requires more high-quality content.

User Engagement—From Transactions to Community Co-Creation

1. Gamified Consumption—Blind Boxes’ Random Surprise Mechanism vs. Fashion’s Pre-Sales and Limited Editions

The trendy toy boom permeates daily life. Young office workers display collectibles, track Pop Mart releases religiously, and even skip lunch breaks to buy blind boxes. Fans trade duplicates via dedicated channels, fostering a unique community culture.

Pop Mart’s retail network spans malls and subway vending machines. Its IP PINO JELLY—a round-cheeked “gummy boy” merging cuteness with trend elements—resonates widely. Collaborations like Mistine’s limited-edition makeup line, themed “Emotions Belong to Me, No Masks,” amplify appeal by blending trendy toys with beauty.

The fashion industry is exploring similar strategies. Ideas include blind boxes for accessories (e.g., gloves, hats), creative twists on basics, or including try-on redemption cards to address sizing issues.

2. UGC-Driven Communication—Fan DIY Culture in Trendy Toys vs. Fashion’s Overreliance on KOLs

Digital transformation has unlocked new opportunities. At the Spring/Summer 2025 ordering meetings, brands showcased virtual runway garments to highlight their digital brand identities. While 3D modeling is currently used primarily for medium sizes, advancements like Alvanon’s digital mannequin services may soon enable full-size virtual try-on experiences.

Pop Mart’s IP incubation model fosters long-term partnerships with global independent designers. This approach preserves designers’ creative autonomy while securing IP rights for the brand, enabling resource sharing. Designers receive funding and market feedback, while Pop Mart leverages its distribution network to scale successes—like designer Xiong Miao’s SKULLPANDA series, which blended futurism and dark aesthetics to achieve breakthrough success.

In contrast, frequent designer turnover in fashion undermines brand continuity. For example, Dior cycled through five creative directors in a decade—from Raf Simons’ minimalism to Maria Grazia Chiuri’s feminist ethos—resulting in inconsistent brand identities. Many established designers later launch eponymous labels, leading to homogenized industry styles.

Han Du offers an innovative model: design teams of 3-4 members release small-batch collections on the company’s platform. Top-performing teams scale into independent divisions. Though competitive, this “flexible supply chain” approach significantly accelerates product updates and market responsiveness.

3. Secondary Market Ecosystems—Premium Resale Value in Trendy Toys vs. Fashion Resale Platforms

Cultural shifts are also noteworthy. From 1980s Shanghai Animation Film Studio classics to 1990s Western/Japanese animation dominance, and recent hits like Ne Zha, China’s cultural confidence is rising. While 2025 is seen as a breakout year for domestic animation IPs, global recognition requires sustained high-quality content. This trend impacts adjacent industries—factories once focused on Disney products now see growing demand for local Chinese IP-based trendy toys.

Data-Driven Flexible Supply Chains

1. Demand Forecasting & Agile Production—Pop Mart’s Pre-Sales Informing Production vs. Traditional Fashion Ordering Models

Pop Mart excels in flexible supply chain management. Through WeChat mini-programs, it launches limited pre-sales where consumers purchase blind boxes days before shipping. This allows precise collection of order and preference data. By analyzing top-selling styles, regional demand, and hidden edition drop rates, Pop Mart adjusts production swiftly—e.g., increasing Dimoo Space hidden edition output by 50%. Offline store scan-and-try data optimizes regional inventory distribution, while surplus stock is sold via vending machines or themed “lucky bags.” This data-driven model enables bestsellers to ship within seven days, maintaining ultra-low inventory levels.

Traditional fashion supply chains remain rigid. Order meetings require 6-12 months of advance planning, involving trend analysis, sample production, and bulk orders from distributors. Minimum order quantities (1,000+ units/style) and frequent design revisions lead to inefficiencies. Even innovative models like “100-orders-trigger-production” struggle due to small batches, high costs, and supplier reluctance to prioritize such orders.

2. Deepening DTC (Direct-to-Consumer) Models—Pop Mart’s 80% Owned Channels vs. Fashion’s Third-Party Dependency

Pop Mart controls over 80% of its channels (stores, vending machines, WeChat mini-programs), building a direct consumer network. This DTC model provides first-party data for omnichannel insights and precision marketing, achieving a 58% member repurchase rate—far exceeding the industry’s 20% average. Limited editions exclusive to owned channels further drive traffic to official platforms.

In contrast, fashion brands heavily rely on third parties. Anta, for instance, derived 33.8% of its 2024 online sales from platforms like Tmall and JD.com, while only 50% of its 12,000+ stores are self-operated. Third-party channels expand reach but erode profits, fragment user data, and risk brand value through discount-driven strategies. Growing awareness of data’s value is now pushing brands to prioritize owned channels.

3. Sustainability & Anti-Waste Mechanisms—”Collecting as Sustainability” in Trendy Toys vs. Fashion’s Inventory Burning Controversies

Innovative fashion stores are experimenting with hybrid concepts—blending apparel with cafes, books, or cultural IPs. While these attract young crowds for social media photo ops, actual revenue often relies more on coffee and accessories. Practical innovations include in-store mini-runways for customer “fashion shows” paired with nail art and makeup services. These experiential tactics offer relatable (reference points) compared to professional models, while creating unique social scenarios.

A niche Chengdu store exemplifies this: offering free formal wear rentals for Valentine’s Day paired with paid candlelit dinners. This model taps into young consumers’ willingness to pay for emotional value, merging core services with curated experiences.

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