Blind-box toys are experiencing explosive popularity, with the "Labubu" figures from Pop Mart (09992-HK) sparking an astonishing collecting frenzy among consumers worldwide. These limited-edition, toothy, "ugly-cute" figurines often sell out within minutes, and subsequently, their prices soar to hundreds or even thousands of dollars on resale platforms like eBay, showcasing the remarkable market dynamism of blind boxes.
The American toy industry is increasingly incorporating "blind boxes" or "mystery packaging" into its core holiday strategies. Established US toy companies like Hasbro (HAS-US) and Mattel (MAT-US) are turning their classic products into blind box formats. For example, the Furby and Barbie have released "mystery packaging" versions in an effort to align with this global trend. Companies like Spin Master are also joining the fray with popular hidden packaging products like the CrystaLynx dragon series.
Additionally, retail giants view blind boxes as one of the most critical weapons for this year's holiday season. Walmart has added a significant number of blind box figures and collectible card packs to its popular gift list. A spokesperson for Target (TGT-US) revealed that the company has decisively doubled its assortment of blind box products for the festive shopping surge to meet the explosive market demand.
The Addictive Nature & High Repurchase Rates Are the Biggest Incentives
The addictive nature and high repurchase rates are the biggest incentives for toy manufacturers to actively compete in the blind box market, driven by its unique business model that offers high returns.
Juli Lennett, a toy industry consultant at market research firm Circana, points out that manufacturers favor the blind box model primarily because it triggers the consumer's "Chase" instinct. "Consumers don't just buy one; they buy 10, and 30. This sense of chasing is what makes it appealing." The design that conceals contents and encourages consumers to collect the entire set is the main driver behind repeated purchasing behavior and the ongoing expansion of sales.
The case of New York resident Ashley Harseim exemplifies this consumer psychology. She seeks gift cards from retailers like MINISO, believing that "the element of surprise is cool and provides a pleasurable dopamine rush."
Additionally, in the context of rising manufacturing costs leading to increased toy prices in the US, many blind box toys remain affordably priced in the range of US$6 to US$10. This makes them an attractive option for consumers looking to buy Christmas gifts in large quantities.
Specialized Blind Box Retailers Welcome Historic Holiday Season
This competition is not limited to traditional giants; it also presents a historic opportunity for specialized retailers focusing on blind boxes.
According to data from Circana, after two years of stagnation, the collectibles category—including Pokémon trading cards—has driven growth in total toy sales in the US in recent months. Retailers like MINISO, Ohku, and the Canadian specialty retailer Showcase are poised for a crucial holiday season.
Samir Kulkarni, CEO of Showcase, noted that blind boxes accounted for a very small portion of its sales last year, but he expects this Christmas season to set a historic record. The company is actively expanding its stores in the US and introducing products like Sonny Angel, a competitor to Labubu.
(Source: Yahoo)
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