Consumers browse Zootopia 2 co-branded merchandise inside the MINISO LAND section at a store in THE BOX shopping center in Beijing on December 1, 2025. Photo: VCG

Several major Chinese designer toy and lifestyle retail companies reported strong first-quarter business growth, with industry observers saying that the results reflected the continued vitality of China's designer toy and intellectual property (IP)-driven on-site consumption market, as well as resilient consumer confidence in the country's evolving cultural and creative consumption sector.

As a leading cross-sector player in China's trendy toy and new retail market, MINISO Group sent a positive profit alert to the Hong Kong Stock Exchange on Wednesday, saying that several key financial indicators are estimated to have posted robust growth in the first quarter of 2026.

The company estimated that first-quarter revenue reached 5.68 billion yuan ($787 million) to 5.73 billion yuan, up about 28 percent to 29 percent year-on-year. Profit for the period is estimated to have surged about 195 percent to 200 percent, according to the filing.

The growth was not limited to headline profit figures. MINISO estimated that its adjusted operating profit, excluding foreign exchange gains and losses, rose about 13 percent to 16 percent year-on-year, while adjusted net profit, also excluding foreign exchange gains and losses, increased about 7 percent to 10 percent. 

The figures point to steady underlying momentum in its consumer-facing business, even as part of the profit increase was linked to fair-value gains from an investment in the artificial intelligence sector, analysts said.

Other Chinese designer toy and IP-related companies also posted strong first-quarter performances.

On Tuesday, Pop Mart International Group released its latest first-quarter business update, saying that its unaudited overall revenue had risen by 75 percent to 80 percent year-on-year, reflecting sustained growth momentum in the sector.

Revenue from the Chinese market increased by 100 percent to 105 percent year-on-year, while revenue from Asia-Pacific markets outside China rose by 25 percent to 30 percent, the Americas by 55 percent to 60 percent, and Europe and other regions by 60 percent to 65 percent, according to the company's latest business filing with the Hong Kong Stock Exchange.

In terms of channel performance in China, Pop Mart said that its on-site revenue increased by 75 percent to 80 percent year-on-year, while online revenue jumped by 150 percent to 155 percent.

During a conference call on Wednesday, Pop Mart management said that the company will further explore the commercial value of the LABUBU IP through high-quality products and richer content offerings. The company plans to launch two major LABUBU products in the second half of this year, according to the Securities Times.

The company also said that a LABUBU movie is currently in the script development stage, while construction of the second phase of its Beijing-based theme park project is expected to begin in 2027, according to media reports, signaling its push to develop LABUBU into a broader IP ecosystem spanning products, content and in-person experiences.

The strong first-quarter performances of designer toy firms were mainly driven by the expansion of domestic consumption scenarios and demand stimulated by new product launches tied to popular IP items, Song Ding, a research fellow at the China Development Institute, told the Global Times on Wednesday.

The performances also showed how China's emerging consumption sectors are increasingly capable of converting market traffic and consumer enthusiasm into tangible business results, he added.

The industry's growth also helps expand the range of choices available to global consumers. They can access more fashionable, reliable and faster-updated products and services at the same price level, Song said.

Bloomberg reported on March 15 that Pop Mart characters such as Twinkle Twinkle, Skullpanda and Crybaby are drawing crowds, commanding premiums on resale platforms and climbing the company's sales ranking.  

Global trust in Chinese brands has risen significantly, with their international influence continuing to expand, according to a report by consulting firm Ipsos, the Xinhua News Agency reported. Consulting firm Kearney described Chinese brands as evolving from product sellers to ecosystem builders, and from market participants to network orchestrators.