Domestic Building Blocks Nugget Tens of Billions of Market

In the world of building block players, it is widely circulated in the industry: building blocks are divided into two categories, Lego and others.

According to Euromonitor data, Lego's market share in the Chinese market in 2020 is 42.3%. However, many domestic brands, including Bangbao Puzzle, Star Diamond, Senbao, and Bruco, have a market share of less than 5%.

Although in terms of market share, Lego has achieved a dominant position. But this does not affect the domestic building blocks to keep up with the new trend of "national consumption" and tap new growth space. Especially under the influence of the epidemic, building blocks at home has boosted the development of the industry. On e-commerce platforms, the building block category has piled up a market of tens of billions.

According to the data, the toy market has an obvious adult trend, and building blocks have become the category with the highest repurchase attribute among the toy industry categories. During the 618 pre-sale period in 2021, the cumulative amount will increase by more than 100% year-on-year. Among them, more than 50% of the building blocks produced by the toy supply chain in Chenghai, Guangdong, including Enlightenment, Senbao Building Blocks, Keeppley, Loz, Goody and other brands were born and grew here, and entered the sight of consumers.

In Chenghai, Guangdong, the "Toy Capital of China", almost every household is making toys. In order to break the cognition of "low-priced building blocks", in 2019, based on the enlightenment of the building block brand founded by their father, the Jancada brothers re-founded the trendy building block brand Keeppley, which not only cooperates with Doraemon, Pokémon, etc. Co-branded with well-known IPs, they also created phenomenal national fashion products such as the China Aerospace series and the Guoman IP series, which are loved by consumers.

We have seen that under the catalysis of new consumption, domestic building blocks continue to break through themselves and explore new opportunities. On the one hand, in terms of cross-border IP cooperation, Keeppley and the Forbidden City jointly launched the Guochao series. Senbao Building Blocks cooperated with the Guochao IP Wandering Earth, Shandong Ship, and Sanxingdui series. While developing its own IP, it is also strengthening the country. Wind IP construction is closer to Chinese traditional culture.

On the other hand, to avoid the homogenization of IP, many manufacturers have developed a new splicing method "mortise and tenon", hoping to reflect the traditional Chinese craftsmanship through the assembly method originated from Chinese architecture, and thus attract the attention of players. In addition, in terms of cost performance, compared with Lego, which costs hundreds to thousands of yuan, the price of domestic building blocks has an advantage.