The global trendy toy market is experiencing a new wave of restructuring. On August 21, 2025, MINISO Group announced alongside its quarterly earnings that its trendy toy brand TOP TOY secured strategic funding led by Temasek, achieving a post-investment valuation of HK$10 billion.

This announcement came as TOP TOY delivered impressive results: second-quarter revenue surged 87.0% year-over-year, with total store count reaching 293 locations.

Almost simultaneously, industry leader POP MART demonstrated robust growth—in the first half of 2025, its Labubu IP generated 34.7% of total revenue, representing a 726.6% year-over-year increase, while overseas revenue grew 440%. The rapid development of both companies signals that China's trendy toy industry has entered a high-growth phase.

**New Industry Landscape: Duopoly Competition Intensifies**

Temasek's investment in TOP TOY was far from impulsive. The Singapore sovereign wealth fund, renowned for its keen market insight and long-term investment perspective, based its lead investment decision on thorough research.

TOP TOY, as MINISO Group's trendy toy brand, has shown remarkable growth trajectory. In Q2 2025, TOP TOY achieved revenue of RMB 400 million, up 87.0% year-over-year, significantly outpacing industry average growth rates.

As of June 30, 2025, TOP TOY operated 293 stores total, with 283 located in mainland China. The company added 17 new stores in the first half, generating total GMV of RMB 1.05 billion.

Comparing with industry leader POP MART, the first half of 2025 performance was equally impressive. Its Labubu IP and blind box model generated 34.7% of revenue, with year-over-year growth reaching 726.6%.

POP MART achieved a remarkable gross margin of 70.3%, far exceeding traditional toy companies' 20-30% levels. This stems primarily from premium pricing and limited exclusive strategies that create economies of scale.

POP MART's global expansion has also yielded significant results: 2025 overseas revenue grew 440%, accounting for 40% of total revenue. Growth rates in the US and European markets reached 480%.

**Capital Perspective on Trendy Toy Sector: Emphasis on IP and Globalization**

Behind Temasek's investment in TOP TOY lies recognition of the enormous potential in China's trendy toy market and MINISO Group's global expansion capabilities.

MINISO Group's Q2 2025 results were equally impressive: total group revenue reached RMB 4.97 billion, up 23.1% year-over-year. Adjusted net profit was RMB 690 million, increasing 10.6% year-over-year.

As of June 30, 2025, MINISO operated 7,905 stores globally, with 74.5% of new stores opened in overseas markets. Overseas revenue accounted for 42.6% of MINISO brand's total revenue.

TOP TOY's core competitive advantage lies in its product strategy and IP portfolio. In the first half, TOP TOY launched over 170 new products globally.

Regarding proprietary IP, the popular trendy toy IP Nommi officially joined TOP TOY's proprietary IP matrix. This original healing-themed IP has numerous fans in Southeast Asia and other regions, joining with original IPs like Roll Sheep to form TOP TOY's strong proprietary IP asset library.

MINISO Group Chairman and CEO Ye Guofu stated: "MINISO's future focus is to fully develop, deepen, and expand IP capabilities, creating influence not only in China but globally."

POP MART has adopted a different strategic path. The company's market capitalization has reached $40 billion, far exceeding traditional toy giants Mattel ($5.1 billion) and Hasbro ($8.7 billion).

POP MART has successfully created multiple proprietary IPs including Labubu, Molly, and HIRONO, while securing exclusive rights from international artists. Its blind box model creates scarcity and exclusivity, driving repeat purchases and an active secondary market.

Huatai Securities issued a research report expressing strong confidence in POP MART as a one-stop trendy toy IP platform's category and IP expansion growth momentum, maintaining a "Buy" rating. The institution maintains 2025-27 adjusted net profit forecasts of RMB 10.2/15.2/19.7 billion.

**Future Development Trends: Challenges and Opportunities Coexist**

While the trendy toy industry is growing rapidly, it also faces considerable challenges. POP MART confronts risks from China's blind box regulatory policies and design fatigue that cannot be ignored. However, its $840 million cash reserves and digital engagement strategy help mitigate near-term challenges.

TOP TOY may face questions about maximizing synergies with parent company MINISO and how to continuously create hit IPs amid intense competition.

Facing these challenges, both companies are actively positioning for the future. POP MART plans to achieve 65% of revenue from overseas markets by 2027. Its innovative businesses including theme parks, accessories, and confectionery are flourishing across multiple fronts, while content development in film and animation is expected to help elevate the company's IP global influence to new heights.

MINISO announced a strategy to take 100 Chinese IPs global. Multiple artist products and "Right Right" IP products will expand to overseas channels this year, achieving global cultural export and establishing brand barriers.

Ye Guofu emphasized: "By deepening collaborations with global leading IP partnerships, we ensure overall operational sustainability and stable growth while building differentiated, high-explosive, and replicable sustained growth drivers through proprietary IP. This is the key to our confidence in future growth sustainability."

As of June 2025, POP MART's overseas market revenue accounts for 40%, while 283 of TOP TOY's 293 stores remain in mainland China.

Both companies have clearly identified globalization as a core strategy. POP MART plans to increase overseas revenue proportion to 65% by 2027; TOP TOY leverages MINISO's global network of 7,905 stores and Temasek's international resources to accelerate overseas expansion.