sure waiting to be discovered. While the recent surge of interest in blind boxes might feel like a new phenomenon, the art toy industry has been thriving for decades. From roots in niche art communities, it has grown into a billion-dollar sector with millions of passionate collectors worldwide. Much like fine art or vintage fashion, art toys are a medium for appreciating creativity and the stories behind their creators. The popularity of art toys can be traced over 20 years to the creation of beloved characters like Bearbrick and Dunny. These iconic collections have paved the way for a new generation of creators who blend contemporary design with storytelling, designing pieces that resonate with collectors and casual fans. For the blind-box sector, however, it’s a slightly different story. The psychology behind the blind box ‘English teacher Trung’s journey into the world of blind boxes began with a simple purchase earlier this year, driven by curiosity. What started as a single acquisition quickly evolved into an impressive collection, transforming his modest home office into what he now proudly calls his personal mini museum. His carefully curated display showcases an expanding series of blind-box characters, featuring beloved figures including Hirono, Smiski and Kubo, from popular collections. “I’d rather spend money on things that bring me joy than on mediocre dates,” Trung explained, describing with enthusiasm his growing passion for blind boxes. “These collectibles have become more than just toys – they’re pieces of art that make my space uniquely mine. “I love the intricate details and the thrill of opening each box, not knowing which character I’ll get. Every unboxing feels like unwrapping a special gift to myself. Collecting them with friends has added another wonderful dimension to the hobby. We all share in the excitement, trade stories about our collections, and sometimes even organise blind-box hunting expeditions together. It’s become a social activity that brings us closer.” Unlike traditional art toys, the blind- box concept can be described as a clever marketing strategy that relies on consumer psychology. The excitement lies in the allure of unpredictability. Customers don’t know what they will get – a rare piece, a fan-favourite, or something entirely unexpected. “Consumers are captivated by the excitement of blind boxes, enjoying the unpredictable discovery process and the sense of joy and emotional fulfillment it brings,” Justin Moon, president of Pop Mart International, told Inside Retail. “At Pop Mart, we see collectibles as more than products, they’re a way to express creativity, find joy, and connect with others. Blind boxes are also a popular gift option, bringing people with shared passions together and creating vibrant social communities.” The sense of community is integral to the blind-box experience. Fans often share unboxing moments on social media, creating a ripple effect of excitement that extends far beyond individual purchases. “Pop Mart has built a global collector community by fulfilling emotional needs through the excitement and surprise of blind boxes. Fans share their collections on social media, connecting with like-minded individuals and creating vibrant social circles,” Moon said. “Influencers amplify this excitement with their reach, inspiring deeper engagement and expanding the community. At Pop Mart, we focus on fostering these connections, making collecting a shared journey of creativity and joy.” Pop Mart as a leading player Since its listing on the Hong Kong Stock Exchange on December 24, 2020, Pop Mart has focused on Intellectual Property (IP) operations and creative designs as the foundation of its success. The company’s trajectory took an upturn with the meteoric rise in popularity of its Labubu character after global superstar and Blackpink member Lisa Manobal shared images of her Labubu ‘Macaron’ series on her Instagram account. This unexpected endorsement from such a high-profile celebrity propelled the Labubu character into the spotlight, capturing the attention of fans worldwide and dramatically boosting Pop Mart’s visibility in the collectibles market. “When Lisa shares her affection for Labubu on social media, it resonates emotionally with her followers,” said Pop Mart international public relations manager Leilei Liu, explaining why the singer’s posts have such a big impact on consumer behaviour. “Fans quickly grasp her emotional expression, and by owning the same product, they feel an even deeper connection to her.”  A Nielsen report stated that Thailand topped TikTok mentions of Labubu and Pop Mart last May, generating over 365,000 comments. In July, Pop Mart’s Labubu was appointed ‘Amazing Thailand Experience Explorer’ by the Tourism Authority of Thailand. TAT expects Labubu-inspired travel packages to attract 20,000 passengers and the promotional videos to generate a reach of at least 500 million. Pop Mart’s stock price surged 370 per cent in Hong Kong in 2024. The company reported revenue of RMB4.56 billion during the first half of 2024, marking year-on-year growth of 62 per cent.  In the same period, Pop Mart opened 20 new physical stores in Mainland China. As of June 2024, its presence in Hong Kong, Macao, Taiwan, and overseas markets included 92 physical stores and 162 roboshops (vending machines selling Pop Mart’s products).  Pop Mart’s international expansion continues at a rapid pace, with overseas revenue now contributing 29.7 per cent of total earnings – a clear indicator of the brand’s growing global appeal. Competition heats up While Pop Mart is playing a crucial role in driving the boom of the collectible toy sector, other players are also emerging as key contributors to this rapidly growing market. Similar to the craze for Pop Mart figurines like Labubu, Crybaby, and Molly, other collectibles, such as Sonny Angels and Smiskis, are taking the internet by storm. Sonny Angels, the baby-shaped dolls adorned with hats inspired by fruits, animals and other quirky themes, are now a global sensation. Their adorable design, coupled with celebrity endorsements, has elevated their status from niche collectibles to mainstream must-haves. Stars like Victoria Beckham, Bella Hadid, and Rosalía have been spotted with these figurines, further fueling their popularity. Meanwhile, Smiskis, the glow-in-the-dark figurines that inhabit everyday spaces like bathrooms and desks, have captured a dedicated following with their whimsical and functional design. These little characters not only serve as collectibles but also double as quirky decor, tapping into the growing trend of personalising living spaces with playful, creative items. Both Sonny Angels and Smiskis are owned by Japanese company Dreams Inc. China’s leading art toy retailer, 52Toys, expanded into Singapore in September, then entered Thailand in December. During the Thailand debut event at Emsphere, CEO Chen Wei noted that 52Toys has established a presence in dozens of countries since beginning its overseas expansion in 2017. The company has focused on strengthening its position in key markets like North America, Japan and Southeast Asia while exploring new opportunities. 52Toys has now designated Southeast Asia as a priority region for expansion in the current year, to accelerate both online and offline growth. The brand has launched flagship stores on Lazada and Shopee platforms throughout Southeast Asian countries. Top Toy – a trendy toy brand owned by Miniso – launched its first store in Thailand last year as part of its broader Southeast Asian expansion. Founded in 2020, Top Toy established itself as Miniso’s strategic response to the trendy toy craze sweeping across China and international markets. In December 2024, Miniso opened its first scenario-based IP co-branded collection store, Miniso Land, in Europe. The brand popularised blind boxes through collaborations with Marvel, Sanrio, and We Bare Bears, focusing on Millennial and Gen Z consumers. Retail brands seize marketing opportunity For retail brands, implementing a blind-box strategy has proven to be an effective method for attracting and engaging customers. In 2021, Lanvin launched a Christmas promotion featuring a blind-box concept on its Tmall flagship store. Online shoppers could participate by paying US$45 for a single entry or US$126 for three chances. The blind boxes contain various items, including homeware like cups, crystal balls, hoodies, and cashmere scarfs, with the winning probabilities clearly displayed in the program. The luxury brand’s campaign generated enthusiasm among young Chinese consumers. Social media platforms like Weibo and Xiaohongshu buzzed with winners sharing their prizes, which helped attract more participants. Lanvin initially tested this strategy in August 2020 with a WeChat Mini Program lottery for Chinese Valentine’s Day and later expanded into physical blind-box machines in its pop-up stores. This approach has proven effective in engaging potential customers interested in entry-level luxury products. Meanwhile, Urban Revivo offers customers a mystery Bag Charm Blind Box with purchases of SG$120 (US$87) or more. Environmental and overconsumption concerns The art toy industry’s explosive growth has raised important questions about environmental sustainability and ecological impact. As production volumes increase dramatically to meet surging consumer demand, stakeholders across the industry are being forced to confront challenging questions about materials usage, manufacturing process, and waste management. The environmental footprint of collectible toys, from plastic production to packaging materials, has become a critical consideration that manufacturers and collectors can no longer ignore. “Pop Mart is committed to incorporating eco-friendly practices across our production and packaging processes,” Pop Mart’s Moon said. “We’ve launched key initiatives, such as material recycling to repurpose excess inventory and reusable logistics packaging to reduce waste and carbon emissions. We’re also exploring ways to integrate recycled materials into our products to support responsible production. These efforts reflect our dedication to reducing our environmental impact, ensuring Pop Mart aligns with both industry standards and our commitment to a more sustainable future for our brand and community.” Has the sector reached its peak? As the sector continues to expand at breakneck speed, questions arise about its longevity. Is the blind-box craze a fleeting phenomenon driven by novelty, or does it have the staying power to evolve into a lasting cultural mainstay? Moon is betting on the latter, pointing to innovation, sustainability and diversification as the cornerstones of future growth. “We will see growth in AR, virtual experiences, eco-friendly materials, and expanding into lifestyle categories and personalised products,” he said. “Immersive offline stores will remain essential, offering vibrant designs, themed displays, and social spaces to engage young consumers. As competition grows, innovation, user engagement, and unique experiences will be key. Pop Mart is committed to shaping the future of blind boxes with creativity and meaningful connections worldwide.” This story first appeared in the February 2025 issue of Inside Retail Asia magazine.