Recently, MINISO, the parent company of Chaowan DreamWorks TOP TOY, announced its unaudited financial report for the second quarter of fiscal year 2023. The data shows that in the whole year of 2022, TOP TOY’s revenue will be nearly 430 million yuan; as of December 31, 2022, the number of stores nationwide will reach 117, including 8 directly-operated stores and 109 franchise stores, a net increase of 28 stores year-on-year .
Entering 2023, with the accelerated recovery of domestic consumption, the passenger flow of offline shopping centers will rebound significantly. Relying on its high degree of fit with shopping malls, TOP TOY uses better quality and more accurate traffic to improve the consumption conversion rate——During New Year’s Day and the Lunar New Year, TOP TOY’s nationwide store traffic exceeded 4.8 million, a month-on-month increase of 180%.
In TOP TOY’s new year’s announcement not long ago, we can also see its rapid recovery. Data shows that in January 2023, TOP TOY’s omni-channel GMV was nearly 100 million, setting a new high in a single month.
Since its establishment in 2020, TOP TOY has continuously innovated the trendy game industry, refreshing the public’s perception and imagination of trendy games, and its outstanding performance is also obvious to all. In an increasingly competitive fashion game track, why does TOP TOY continue to be at the forefront of the consumption wave?
Using Chinese building blocks as a net to accurately capture the interests of young people
As a trendy lifestyle favored by the new generation of young people, the building block market continues to expand. “Overview of China’s Plastic Building Block Toy Industry in 2022” pointed out that the market size of the domestic building block industry increased from 14.2 billion yuan to 20.6 billion yuan in 2017-2021. It is expected that the market size will further expand in the next five years and is expected to grow to 37.3 billion yuan in 2026. , The compound annual growth rate is 12.60%. Domestic building blocks are in their prime, and TOP TOY is also drawing a grand blueprint—in 2023, the proportion of Chinese building blocks will be steadily increased from 30% to 50%.
TOP TOY has laid out the building block track in advance through its keen market sense. It can be seen from its New Year’s news that Chinese building blocks have become its new growth engine. TOP TOY’s New Year’s news shows that in January this year, in the omni-channel GMV, TOP TOY’s sales of building blocks in China accounted for more than 30%, showing huge development potential.
In order to turn Chinese building blocks into a brand “signature dish”, TOP TOY has practiced internal skills in the past year and gradually formed a building block team to enhance product R&D and design capabilities. In 2022, the SKU of TOP TOY Chinese building blocks will be 80+. With the continuous growth of the building block team, the number of new building block SKUs of TOP TOY Chinese building blocks in 2023 is expected to increase to 200, striving to become one of the domestic building block brands with the most abundant product lines.
From developing the building block category to becoming a strategic category, products have always been the cornerstone of the development of TOP TOY China’s building blocks. Starting from the “Retro Home Appliances Series”, TOP TOY Chinese building blocks continue to explore original designs and IP “secondary innovations”. There is a steady stream of popular building block products, which drives the growth of sales and wins more attention for the brand.
For example, since its launch in late October 2022, the collection-level trendy toy “Kuluomi Building Blocks and Semi-Mechanical Body” jointly created by TOP TOY and Sanrio has sold more than 10,000 orders, with a cumulative sales of nearly 10 million yuan. Refreshed the general sales performance of TOP TOY. And after the product entered more than 90% of Sam’s Club stores across the country, it even topped the TOP list of Sam’s Chinese toys.
Also rushed into the TOP10 sales list of Sam’s building blocks category, and “Luban No. 7 Lion Dance Oriental Scene Building Blocks” jointly created by TOP TOY and the national game IP King of Glory. This is the first building block product of King of Glory, which highly restores the game hero Luban No. 7’s lion dance oriental skin image is even loved by consumers. At present, the cumulative sales volume of this product in all channels exceeds 15,000 units, and it was sold out across the board during the Spring Festival, and the supply exceeded demand.
It is worth mentioning that in 2023, TOP TOY China Building Blocks will promote the product co-creation plan to deepen and solidify, and consolidate the brand image of trendy building block products co-created by the people. Previously, TOP TOY Chinese building blocks have successfully created building block products that users love through co-creation. For example, the semi-mechanical Kulomi building blocks are generally created by the TOP TOY team and 100 cool fans, and the launch is very popular. In addition, TOP TOY and Wuling Motors co-organized the first “Convertible Car Inspiration Contest”, which left the right to decide the next series of building block cars to users, and the rankings of the awards have been announced.
Both online and offline efforts are made to provide the ultimate building block consumption experience
With more and more products out of the circle, TOP TOY Chinese building blocks have further improved the channel layout to form a closed-loop online and offline experience.
Online, TOP TOY Chinese building block products have entered major e-commerce platforms. The TOP TOY trendy building block flagship store was launched on Tmall in April last year, helping the growth of building block categories in all channels. The data shows that the sales of TOP TOY Chinese building blocks on the e-commerce platform have increased significantly, and Q4 increased by 30% compared with Q3.
Offline, more and more TOP TOY Chinese building block-themed stores are appearing in front of consumers. Take TOP TOY Guangzhou Meilin M·LIVE Tiandi Store as an example. This Chinese building block-themed store is located in the atrium on the first floor of the shopping mall. The eye-catching red “Chinese building block” logo is immediately visible, and the space adopts multi-color building block style. The combined color design of the water table presents a distinctive building block theme style, and the characteristic building block product display area and building experience area are divided into special areas to enrich consumers’ experience in the store.
It is understood that TOP TOY launched a nationwide store renovation in December 2022. There are already 35 Chinese building block-themed stores similar to Guangzhou Meilin M·LIVE Tiandi Store. The upgrade of the building block area is based on the fusion style of the store and the business district. Currently, it has been planned from version 1.0 to version 4.0. In the future, stores across the country will be upgraded one after another. Sun Yuanwen, the founder and CEO of TOP TOY, once said that at least one-third to one-half of the area should be dedicated to building blocks.
In terms of channels, in addition to the online and offline channels that have been covered so far, TOP TOY China Building Blocks will also cooperate with more toy retail channels to tap more potential audiences and continue to open up the Chinese building block market.
With “Trendy Play” as the sail, continue to push the “growth giant” forward
In Sun Yuanwen’s vision, TOP TOY will be bound to two keywords in the future, one is the “building blocks” mentioned above, and the other is “fashion play” that has been cultivated since its establishment.
For a long time, TOP TOY has been exploring more diverse ways to reach and link consumers. Through cross-border cooperation with partners in various fields, TOP TOY has continuously entered the field of vision of the younger generation with a fresh attitude, and transformed the huge potential energy it has formed into the strength of brand upgrading.
As the “individualized needs” of consumers gradually shift from the material realm to the spiritual realm, the new products, consumption scenarios, social context, etc. brought by cross-border cooperation have become the direction of TOP TOY’s bold exploration, hoping to inspire the public in all aspects interest, thereby triggering consumption behavior.
Take TOP TOY’s exclusive IP to vigorously attract money as an example. It has achieved cross-border linkage with well-known brands such as BY-HEALTH, RIO, Peace Elite, Happy Mahjong, Yuanqi Forest, and Battle of Ping’anjing. Push your creative boundaries.
It should be noted that today, when the dividends of Internet traffic are exhausted, consumer goods must slowly return to product power itself, and the trendy game industry is no exception. Only by carrying out corresponding iterations and innovations around the ever-changing needs of consumers can the business last for a long time.
In the past year, TOP TOY has further enriched its exclusive product matrix, accurately occupying the minds of consumers, and a variety of products have aroused enthusiastic market response and outstanding sales performance.
For example, during the double 11 period in 2022, the “Kulomi Poker Kingdom Series Blind Box” sold more than 20,000 pieces, and the quarterly sales exceeded 60,000 pieces; after the vigorously recruiting “Qi Miao Yi Treasure Series” blind box went online, the sales quickly exceeded 5,000 Orders have also increased significantly since then, and the popularity of the “Classic Lucky Series” blind boxes has not diminished. In January, the sales of single boxes once again exceeded 10,000; Disney’s Strawberry Bear Dessert Party series blind boxes were almost sold out within 10 days of going online at the beginning of the new year in 2023 , In early February, Li Jiaqi, the head anchor of Taobao, once again set off a sales boom in the live broadcast room.
With stalks and topics, TOP TOY relies on a steady stream of exclusive products and original IP products to bring new value to players with precise cognition and high-quality product power, and also allows itself to break through strongly in the track.
According to data from iiMedia Consulting, by 2023, the scale of China’s trendy game market will reach 57.1 billion yuan, which means that the market still has huge potential and room for development. TOP TOY, which has opened the prelude to the 3.0 era, has brought continuous happiness to consumers in all channels by virtue of continuous product innovation and gameplay innovation. With the new signature dish of “Chinese building blocks”, TOP TOY will surely inject “new vitality” into the trendy play track.