Collectible toy brand 52Toys has closed a Series C financing round, securing US$62.8 million – the largest yet for its category in China.
Che Wei co-founded 52Toys in 2015 with the founder of Three Kingdom Wars (an online game), and COO of Yoka games, Huang Jin. At the start, the company was focused on toy development to the business market but over the years, the company began expanding into the consumer market.
Wei understood that the business needs to be more diversified for the product portfolio to enter a wider market. He urged his team to develop a comprehensive understanding of products before they enter both domestic and international markets.
The company has also now developed six new product lines including the blind box – where consumers buy a product without knowing what is inside, like a Kinder Surprise toy. They include figures, deformation toys, action figures, designer & artists toys, and 52Puz board games.
The blind box aims to attract young women consumers with its cute appearance while the BeastBox series has attracted a large number of male players. The ‘Chaohuophua series’ blends Chinese traditional culture and elements making it popular with all ages.
In order to create an original IP, employees develop a concept then extensively research it both internally and externally to finalise the product. The company believes that it is through experience and research that their IPs have gained widespread acceptance and admiration in the market.
The company has also adopted a ‘Double-Wheal strategy’ – wherein both self-designed and cooperative IPs such as Disney Princesses, Harry Potter, Crayon Xiaoxin, My King Sleep are incorporated to be competitive in the market.
The company says it will use its latest funding injection to expand its IP design capabilities, R&D ability, and boost access to supply chains, as it aims to become a big player in the collectible toys industry.