2026.09.23 | AC | Consumer | BLOKS Channel Check

摘要

1. Interest-based consumption has slowed somewhat. The domestic building block figure competitive landscape has

improved, with rivals such as Lingdong and Enlighten exiting the assemble-on-runner plastic plate segment.

1. BLOKS shifted its strategic focus to adult-oriented products this year, introducing new adult-targeted SKUs in 1H and

accelerating release frequency. The all-ages Harry Potter IP may launch in 4Q, potentially capturing incremental consumer segments such as adult women.

1. Overseas business surged, while shifting domestic inventory to overseas adult markets optimized channel health.

Expert Insights:

What were the performance characteristics across the company's different product lines in 1H 2026?

In 1Q 2026, the four legacy IP product lines remained the primary revenue drivers, while sales across adult-oriented products and building block vehicle lines showed little notable traction. It was not until late March that sales in these two categories began picking up substantially, with positive momentum extending into April.

What are current domestic channel sell-through and inventory levels? Compared with last year, is current inventory at a healthy level?

From a distributor's perspective, channel inventory from March to August 2026 remained consistently within a sell-through or turnover cycle of two months. This is a very sound position that carries minimal cash flow pressure. In comparison, headquarters inventory typically runs 1 to 1.5 months above this channel baseline. However, because July and August represent the seasonal off-peak and saw no major new SKU launches, headquarters' inventory cycle is currently estimated at around three months.

Looking back historically, inventory conditions are the best since BLOKS went public. Around the IPO period, channels faced substantial inventory stuffing, pushing turnover cycles beyond six months; some peer-level distributors even endured cycles of seven to eight months, marking the toughest stretch. Smaller inventory build-ups also occurred in September and December 2025, leaving the full-year average inventory cycle hovering near four months, with distributors purchasing close to 10 million yuan feeling even heavier inventory strain. Even after rapid digestion, turnover cycles remained at four to five months. Therefore, bringing the cycle below three months since March 2026 is an unprecedented, favorable development.

What primarily drove this marked improvement in channel inventory? When did the company initiate proactive inventory optimization?

Channel inventory optimization took place mainly in 2026. The root cause lies in current overseas market dynamics—essentially an alignment of the right timing, favorable conditions, and strong execution. Over 75% of domestic customers are children and adolescents aged 6 to 16, whereas overseas markets across Asia, Europe, and the US feature the exact opposite demographic profile, being predominantly adult. The company leveraged this contrast by redirecting domestic inventory to overseas markets.

While this was not the first attempt, the outcome this time was remarkable. On the one hand, after about a year and a half of execution, the company's global supply chain—including logistics and warehousing operations across multiple countries—has matured considerably under local team management, resolving early operational shortcomings. On the other hand, a core strategic priority in 2026 was expanding adult-oriented SKUs, which aligned cleanly with overseas demand. As a result, inventory digestion campaigns in the US and Southeast Asia yielded clear results, improving domestic inventory while sparking exponential growth in overseas sales.

Within BLOKS's full-year 2026 targets, what are the respective expectations for domestic and overseas markets?

The domestic sales peak spans September, October, November, and December; as long as no major missteps happen in these four months, full-year target attainment will not be materially compromised. The standard pacing for company targets follows a "20%, 30%, 20%, 30%" quarterly split, though 2Q and 4Q occasionally target growth above 30%.

Overseas, particularly in the US and Southeast Asian markets, the business has maintained a doubling trajectory. Although 2026 marks the first official year of overseas operations and building from zero to one has been challenging, the low baseline makes the growth rates exceptionally striking.

What specifically caused the soft performance in 2Q 2026—was it intentional destocking or weaker end-market sell-through?

The 2Q pullback stemmed primarily from an intentional decision to slow the launch cadence of SKUs targeting the 6–16 age bracket, particularly for the four legacy IP lines, which had a pronounced drag on sales.

At the retail level, even distributor-owned school-adjacent stores, street-front outlets, and small community stores saw noticeable drops in foot traffic. This partly reflected macroeconomic constraints on consumer pocket money, but the core issue was slow product refreshes, with shelves still displaying items from the previous month or quarter.

Behind this strategic adjustment was the company's pivot this year toward adult-oriented lines. While fast-tracking adult-oriented SKUs, it trimmed resources dedicated to products for ages 6 to 16.

In 1H 2026, what was the concrete quantitative evidence of the SKU strategy shifting toward adult-oriented products? Compared to last year, how did the share of new adult-oriented SKUs change?

Judging by distributor procurement, newly added adult-oriented SKUs in 1H 2026 grew by at least 30% compared with 2025. Within total new SKU introductions, the proportion of adult-oriented products also rose substantially, reaching roughly 30%.

As strategy tilted toward adult-oriented lines, how did sales channels differ from the past? What shifts have distributors seen in channel access and product procurement?

The most notable channel change is that distributors can access far greater variety and volume of adult-oriented products than last year. In 2025, distribution of adult products was tightly restricted to key account (KA) and online channels, as adult toy buying occurs mainly online. Entering 2026, with the exception of a few SKUs priced above 200 yuan that remain online exclusives, distributors can secure nearly all adult-oriented offerings on par with KA channels.

At retail, even traditional school-adjacent shops—provided they combine street-front and neighborhood foot traffic—can draw classic "plamo hobbyists" and student parents once brand awareness takes hold, driving traffic for adult lines. Furthermore, several Tier-1 distributors are now active across multiple e-commerce platforms, achieving considerably higher sales volumes than before.

Compared with last year, how do 2026 adult-oriented products differ in IP selection, product quality, and appeal? Can they effectively engage plamo hobbyists and rival brands like Bandai?

The adult-oriented line expanded across multiple categories this year to boost competitiveness. First, the EVA series remains the core pillar; the current sixth-generation release offers distinct price and size advantages over comparable Bandai items, while BLOKS brand exposure in overseas hubs like Tokyo's Akihabara has expanded. Second, large-scale Transformers figures have emerged as a key growth driver, typically priced from 89 or 99 yuan upward. Third, all movie IP products, such as DC and Marvel, are positioned for adults, anchored across three price tiers: 99 yuan, 129 yuan, and 169 yuan. These blend figurine-level fidelity with building block assembly. In terms of detail, they rival Bandai, though certain details prioritize a seamless statue aesthetic over segmented block textures, leaning toward figurine styling that may draw critique from some hardcore purists.

Additionally, building block vehicles began attracting adult collectors following price hikes. The prior 17-yuan price point targeted students but saw lukewarm pickup; raising it to 20 yuan instead attracted adult consumers seeking collectible display models. Together, EVA, Transformers, movie franchises, and building block vehicles form the foundation for significant adult-oriented SKU expansion.

Compared to 2025, how did adult-oriented SKU volume grow in 2026? Did a 30% faster launch cadence translate into proportional SKU growth, or was the pivot toward the adult market more pronounced?

The pivot toward adult-oriented products has been dramatic. While blind boxes represent the largest individual SKU count because each figure is counted separately, adult-oriented open-box items have expanded many times over blind-box series when measured by wave releases. Specifically, 9.9-yuan products have only reached Wave 8, and 39-yuan items have reached Wave 9 or 10. In contrast, Marvel and DC alone launched over a dozen distinct SKUs in 1H 2026, all priced above 100 yuan. Among these, adult-targeted releases like Batman and Harley Quinn met with enthusiastic market demand, with the latter selling out completely.

Across adult-oriented product lines—such as DC, Marvel, EVA, Transformers, and building block vehicles—which specific releases stood out, sold out, or commanded secondary market premiums?

Blockbuster items emerged across multiple adult-oriented lines. In the EVA series, the classic TV-version purple colorway experienced a multi-week stockout in April and May 2026, lifting secondary market prices from the 199-yuan retail price to over 240 yuan, though supply has since normalized.

In the movie series, Superman performed strongly because its cape design conceals articulation joints, minimizing visual seams. In the Hatsune Miku line, Sakura Miku and the yellow Karaoke edition became major hits that frequently ran out of stock.

Additionally, Transformers Wave 8 saw brief initial shortages because the figures can combine into a larger form; however, this reflected normal release-window demand and did not lead to sustained, sharp secondary market markups among collectors.

Compared to established brands like Hot Wheels and Tomica, how do building block vehicles compare in quality, market attention, and competitiveness?

The building block vehicle category is heading in the right direction, though parts of the current product strategy operate in gray areas by launching non-canon designs negotiated with IP owners. For instance, developing vehicle modes for Transformers that never existed in original lore (stipulating only that they do not transform), or creating original vehicles for Ultraman that met with lukewarm interest. Category sales rely mainly on Transformers and Batman, with the Batman 02 model performing particularly well. If the line can consistently secure official licenses with real automotive brands (such as a Ford rally car currently under approval) or prominent film franchises like Fast & Furious, performance should rise significantly. Compared with Tomica, Hot Wheels, Xcartoys, or Mini GT, BLOKS vehicles hold a clear price advantage—selling for two to three times less—while their post-assembly simulated metallic spray finish has earned consumer praise, steadily drawing adult collectors.

Have breakout products in the building block vehicle line commanded secondary market premiums?

The building block vehicle category has not yet seen secondary market premiums. The line is relatively young, having been on the market for only around six months; while it is gaining traction among adult hobbyists, it has yet to build a scale collector base or demonstrate collectible value.

What were the timing, magnitude, and reasons behind the building block vehicle price increase?

The product line adjusted prices on May 9 or June 9 of 2026, rising by 3 yuan from 16.9 yuan to 19.9 yuan. The increase was driven primarily by the higher cost of simulated metallic spray coating. Although made of plastic, its visual texture and tactile hand-feel closely mimic die-cast alloy, driving up production costs.

From January to July 2026, what factors influenced the toy market for children aged 6 to 16? How did sales vary across toy categories?

Two primary factors weighed on this demographic's toy market. First, declining parental purchasing power squeezed children's pocket money, exerting a more direct impact than demographic decline. Second, competitive pressure increased sharply from 3D printers and STEAM educational tech toys. Household penetration of 3D printers among primary school students may already stand at 50% to 60%.

Sales performance diverged across categories. Building block products—including Sembo, BLOKS, and LEGO—all posted declines. However, traditional toys like plush and spinning tops grew by nearly 10% YoY compared to 2025. STEAM educational robotics held steady to slightly positive, growing 2% to 5%. Meanwhile, anime merchandise ("guzi") and ACG goods continued to expand.

Based on the four-store sample, how did BLOKS perform in 2026? How does the picture look when comparing children's lines with adult lines?

Across the distributor's four sample stores (which combine school-adjacent, street-front, and neighborhood store attributes), both BLOKS's children-focused products and peer building block lines trended downward. However, when factoring in adult-oriented lines, overall BLOKS sales remained largely flat with 2025 and may have avoided a decline altogether.

Against the backdrop of channel destocking, what explains BLOKS achieving roughly 20% domestic growth in 1H 2026?

While the four-store sample showed weakness in kids' lines, national market dynamics differ. BLOKS's ability to generate nearly 20% domestic growth in 1H 2026—without channel stuffing and while still working through inventory from late 2025—can be attributed primarily to strong adult-oriented performance, alongside sales in alternative channels like e-commerce and newly added KA partners that balanced out softness in brick-and-mortar stores.

Regarding BLOKS's overseas business, particularly the US, what are the performance contributions, growth drivers, and channel setups?

By overall business scale, the US market currently generates nearly 60% of overseas revenue, with Asian markets accounting for just over 40%. Although Asia has more retail distribution doors than the US, inventory depth per door remains insufficient.

Strong US performance has been powered by IP-driven momentum. Compared with 2025, Transformers IP products grew over 230%, and Japanese anime IPs surged 150% to 180%.

On the channel front, online and offline split evenly. Online activity centers on promotional partnerships with major local influencers across Instagram, Facebook, and Amazon. Offline, the team aggressively expanded into supermarket chains like Walmart and its subsidiaries, while pickup locations at specialty retailers like Toys "R" Us and Hasbro retail partners also posted solid volumes. These factors explain the North American and European teams' strong results since January 2026.

Over the coming months, what notable IP developments are worth watching in domestic and overseas markets?

Overseas markets added numerous new IP partnerships in 2026.

What is the overseas launch cadence for IPs, and what is the status of new product lines like vinyl, plush, and Harry Potter?

Overseas product rollouts follow a sequence starting in Southeast Asia before expanding into Europe and the US, with vehicle lines seeing positive initial traction in Southeast Asia. In vinyl and plush lines, the company introduced Hatsune Miku vinyl-plus-plush products to overseas markets in early September 2026, receiving strong reception. The series uses a blind-box format of six figures per carton. This line has not yet debuted domestically.

Regarding new IPs, the highly watched Harry Potter series is scheduled for 4Q 2026. Although signed nearly two years ago and delayed multiple times, the design team confirmed active development is underway. Market expectations for Harry Potter are elevated, given the IP's broad demographic appeal across ages and genders, with strong potential to capture incremental consumers such as adult women. Beyond these, no other new IPs have been announced.

In the domestic assembly model market, especially the assemble-on-runner plastic plate segment created by BLOKS, how has the competitive landscape shifted in 2026? Are competitors still following BLOKS's popular IP releases?

Competitive dynamics in the assemble-on-runner plastic plate segment have changed dramatically. Prior followers like Lingdong, Qimeng, and Enlighten have largely exited, returning to their traditional building block roots. Qimeng and Enlighten halted updates for over nine months after Ultraman Wave 6 and are not expected to launch new items. Sembo remains the sole rival still manufacturing in this segment, though it only maintains a 10-yuan "guochao" (national trend) product line.

In terms of IP competition, Ultraman's heat has subsided sharply, deterring manufacturers from following. Kamen Rider has a relatively small fan base in China and prompted little competitive imitation. While Hasbro continues to actively license Transformers—spurring diverse formats and price tiers across the market—BLOKS remains the only participant in assemble-on-runner plastic plates.

Have building block makers copied BLOKS's adult-oriented IP releases like EVA, Marvel, and Star Wars? After jumping on trends over the past two years, what are their current strategies?

Mainstream building block makers have not mirrored BLOKS's expansion into adult-oriented IPs. After two to three years of experimentation, competitors found it difficult to quickly penetrate the 6–16 family user base that BLOKS spent 14 years building. For example, Qimeng and Enlighten's 29-yuan Ultraman line, after early success in Waves 1 and 2, saw volumes slide starting at Wave 4 and was discontinued after Wave 6.

Consequently, these brands have pivoted back to their core operations. Sembo has refocused on taking on LEGO in traditional blocks, partnering with platforms like Alifish to license characters such as Sanrio for adult-female-oriented traditional construction sets, which reportedly perform well. Aside from Bandai releasing products under its own IP rights, domestic building block makers show no clear appetite to follow into adult IPs.

Starting in 2Q 2026, has interest-based consumption overall shown signs of cooling or contraction?

Observations indicate that broader market momentum across interest-based consumption has indeed slowed or softened since 2Q 2026.

How do you view the apparent slowdown in domestic interest-based consumption sell-through, especially in toys? What lies behind it—macro factors, consumer fatigue, oversupply, or lack of innovation?

Overall, the market is undergoing tightening and contraction. Feedback from internal teams and industry peers shows many distributors leaving the space or scaling back partnerships; BLOKS has also lost some distributors. The underlying driver is significant macro disruption in the domestic market.

At the retail level, dynamics vary by category. Sales of Japanese anime merchandise ("guzi") and ACG goods have not suffered, posting continued growth instead. In contrast, other categories that lack new SKUs or novel play patterns look increasingly tired.

Aside from BLOKS, which toy categories are outperforming in the current market?

ACG-related merchandise has held up well overall without visible drops. Specifically, gaming merchandise tied to Nintendo and PlayStation sold soundly; despite high prices for authentic licensed goods, core gaming enthusiasts show strong willingness to buy. In addition, female-oriented products such as "ita-bags" and collectible pins maintain solid sales.

Have you noticed retail door counts declining for brands like BLOKS?

Store closures have occurred, notably among independent mom-and-pop shops. Yet new doors have also opened. From post-Chinese New Year 2026 (February–March) to date, BLOKS has added roughly 10,000 retail doors domestically, lifting its footprint to between 210,000 and 220,000 doors. So while closures exist, new store additions remain substantial.

Within the building block figure niche, has any domestic brand emerged alongside BLOKS?

Very few domestic manufacturers produce plastic building block figures identical to BLOKS's format, which differs fundamentally from LEGO or BLOKS's historical construction sets. In the building block figure category, Bandai leads the market, with BLOKS ranking second. Other domestic brands like Qimeng, Enlighten, and Sembo have attempted entries by contracting factories in Dongguan, Foshan, or Yiwu, but fall short in areas like precision engineering.

Since 2026, which emerging toy or consumer tech categories have expanded most rapidly?

3D printers, laser engravers, and robotics lines have grown notably. For instance, DJI-inspired robotics and Ruipao's recently launched tracking camera robots have seen strong market traction. Buyers are primarily adolescents aged 6 to 16, particularly fifth- and sixth-grade elementary students and middle schoolers. While parents hold the purse strings, parents in Tier-1, Tier-2, and provincial capital cities show high willingness to purchase once children ask: roughly five to six out of ten households are willing to spend on these, fueling very visible category expansion.