"No recognition!" Alibaba Trendy Play's first store is cold with few customers, and the new IP "looks like" LABUBU?

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Written by | Yan Yan, “Next-Generation Trend Research Institute” column

Less than a month after opening, Alibaba’s first潮玩store has fallen into an awkward “silence”.

Located at THE BOX Chaoyang outside of Beijing, a new store named “Lucky Loop” has quietly opened. This is Alibaba’s first offline潮玩collection store and serves as a “trailblazer” in the realm of offline trendy consumer goods.

On a weekday afternoon, the “Next-Generation Trend Research Institute” column visited “Lucky Loop”. In stark contrast to the bustling local潮牌store BASEMENT FG next door, which was filled with customers, LUCKY LOOP appeared particularly desolate. During a two-hour observation, the number of customers entering the store was countable, and actual transactions were even rarer.

When asked about the store’s performance in its first month, the staff member did not answer directly, only stating, “After all, we just opened.”

In the潮玩field, those who possess IP hold the key to success. The general consensus in the industry is that for Alibaba’s version of “Pop Mart” to truly establish itself in the潮玩circle, it must introduce impressive proprietary IP products.

And prominently displayed in the store’s central position are Alibaba’s own “children”—Nooobit, Penny, and Hoya.

Among them, the C-position Hoya features pointed ears, jagged teeth, and fluffy skin. On social media, some consumers have openly stated that this new IP resembles Pop Mart’s top-selling “LABUBU”. In response, the store staff also admitted, “It does look a bit like LABUBU.”

Sparse foot traffic in the store, while neighboring competitors thrive

Upon entering “Lucky Loop”, the first impression is: this does not resemble a traditional潮玩store but rather a “trendy culture collective space”.

Notably, Alibaba’s version of “Pop Mart” is not an independent store but a “store within a store” connected to the local潮牌BASEMENT FG, occupying only a small corner of the market space. Upon entering, large samples of Alibaba’s proprietary IP Nooobit, Penny, and Hoya are prominently displayed, becoming the store’s core visual highlight, alongside an IP photo wall, seating area, and wish pool for interactive experiences.

According to store staff, the Beijing location has been open for a month. Regarding the store expansion progress, they stated that, in addition to the Beijing store, the Shanghai store has also opened. However, regarding future nationwide expansion plans and specific layouts, they claimed, “I’m not sure, but we will launch our own mini-program later.”

During the visit, it was observed that LUCKY LOOP’s shelves were filled with various潮玩items, covering blind boxes, trendy figurines, and cultural creative products, as well as popular IP merchandise from home and abroad, including Wakuku, Sanrio, and FUGGLER. Additionally, the store showcased three upcoming proprietary潮玩IP from Alibaba: Nooobit, Penny, and Hoya. According to the staff, several new IP products are expected to officially launch in April 2026, with the current display primarily consisting of samples.

However, during the two-hour observation, in comparison to the bustling local潮牌store BASEMENT FG next door, which was filled with customers, LUCKY LOOP appeared particularly desolate, with very few customers entering and actual transactions being scarce. For much of the time, the number of store employees even exceeded that of customers, and there were instances of “zero customers.”

Moreover, within THE BOX Chaowai Youth Center, where LUCKY LOOP is located, several other潮玩brand stores can also be found, including MINISO LAND (Miniso’s first store in Beijing), FUFUSOUL, and wiggle wiggle.

In terms of foot traffic, the MINISO LAND store features a diverse range of IP co-branded products, including characters like Wang Wang, Conan, One Piece, Crayon Shin-chan, and Pokémon, with a line forming at the cash register; similarly co-branded Sanrio products here are priced at about half of LUCKY LOOP’s.

wiggle wiggle, with its iconic IP characters like Smiley Flower and wiggle Bear, is highly popular among young people, becoming a well-known photo-taking spot in the mall, with many customers willing to casually take home one or two items while taking pictures.

When discussing the performance in the store’s first month, the above-mentioned staff member did not respond directly, only stating, “After all, we just opened.” They emphasized that the store’s “wish pool” attracted considerable foot traffic, with some IP products already sold out, and several IP items were favored by young people. “There are also customers specifically coming to buy blind boxes, making wishes in front of the ‘wish pool’ before unboxing; many of them ended up with the blind boxes they wanted the most.”

New IP resembles LABUBU, consumers say: cute but lacks distinctiveness

The “Next-Generation Trend Research Institute” column found that from a selection logic perspective, “Lucky Loop” follows a “large and comprehensive” collection store route, offering an extensive SKU range that includes blind boxes, figurines, plush toys, and lifestyle goods, with price ranges from dozens of yuan for blind boxes to several hundred yuan for large figurines.

In terms of IP layout, the store has introduced numerous well-known external IPs, including top-tier emoji brands like Sanrio and Little Liu Duck, as well as popular market IPs like TNT’s “Zoraa” and Dream Island’s “Wakuku”. Additionally, there are Alibaba’s three upcoming proprietary潮玩IPs: Nooobit, Penny, and Hoya. Overall, the model does not follow the boutique route of Pop Mart but leans more towards a潮玩"big market."

Behind this, Alibaba is striving to build its own潮玩empire from top to bottom.

Chen Liteng, a digital life analyst at the e-commerce research center of the China Internet Economy Research Institute, stated to the “Next-Generation Trend Research Institute” column that “Lucky Loop” is implemented through a self-operated model, which is expected to be part of its long-term strategy for IP economy and offline retail. The core objective is to fill the gap in Alibaba’s IP licensing, online retail, and offline experience, leveraging潮玩as an entry point for young consumers, linking e-commerce, entertainment, second-hand trading, and AI technology ecological resources, while also providing offline monetization channels for the entertainment IPs of Damai and Alibaba Pictures.

In the潮玩field, those who possess IP hold the key to success. The general consensus in the industry is that for Alibaba’s version of “Pop Mart” to truly establish itself in the潮玩circle, it must introduce impressive proprietary IP products.

In the “Lucky Loop” store, Alibaba’s three proprietary IPs, Nooobit, Penny, and Hoya, are displayed prominently. Among them, the C-position photo spot features Hoya’s IP image, which has a cute and healing design style, characterized by pointed ears, jagged teeth, and fluffy skin.

On social media, some consumers have openly stated that this new IP resembles Pop Mart’s top-selling “LABUBU”. The store staff also admitted, “Many customers have said it looks a bit like LABUBU.” Additionally, some consumers told the “Next-Generation Trend Research Institute” column, “The new IP is quite cute, but lacks distinctiveness.”

In contrast, the neighboring FUGGLER (an ugly cute doll inspired by the British artist’s eBay false teeth) is clearly favored by younger consumers, with customers occasionally picking it up to examine. Store staff revealed that the best-selling items in the store currently are from the FUGGLER series, “This one is relatively alternative and unique, which many young people like.”

In Chen Liteng’s view, the biggest challenges facing Alibaba’s Lucky Loop in the future will focus on proprietary IP incubation, enhancing offline operational capabilities, balancing the interests of IP partners, and establishing a profitable model after scaling. “I believe its entry will not directly disrupt the existing pattern but will push the潮玩track from competition based on individual items and stores to comprehensive competition involving IP, channels, technology, and ecology, accelerating the exit of small and medium players and the standardization of the industry.”

Will the潮玩circle change with the arrival of Pop Mart?

Why has the潮玩trend caught the attention of internet giants?

According to estimates from the Guangdong Toy Association, by 2025, the market size of China’s traditional toy market is expected to be about 80.13 billion yuan (RMB, the same below), with a year-on-year growth rate of about 3.5%; the market size of China’s潮玩market is expected to be about 87.97 billion yuan, with a year-on-year growth rate of 21%. Research data from the潮玩division of the Guangdong Toy Association indicates that by 2026, the total value of the Chinese潮玩industry is expected to reach 110.1 billion yuan.

Frost & Sullivan data shows that from 2015 to 2024, the global潮玩market size grew from 8.7 billion yuan to 44.8 billion yuan, with a compound annual growth rate of nearly 23%. During this period,潮玩markets in Europe, the United States, Japan, South Korea, and China have all seen rapid growth. Today, North America, Europe, and China have become the top three markets globally, while emerging markets in Southeast Asia and Eastern Europe have also experienced accelerating growth in recent years.

In recent years, the潮玩market has grown rapidly. The enormous market size and the continuous influx of young consumer groups have transformed潮玩from a niche celebration into an essential future entry point that internet giants must compete for.

According to Zhou Ting, director of the Key Opinion Leaders Research Institute, Alibaba’s first offline潮玩store “Lucky Loop” opened in Beijing. The core strategic considerations include four points: first, extending from a retail platform to a brand and IP operator; this is a trial, and in the future, they will expand into multiple fields and create multiple brands; second, linking online and offline ecosystems, with潮玩stores serving as entry points for offline retail; third, focusing on young consumer groups and transforming into trend leaders rather than being merely a retailer; fourth, shifting the core strategy from “selling goods” to “managing people,” with潮玩being the starting point of its one-stop lifestyle service ecosystem.

However, as Alibaba enters this fertile ground with its ecological strength, it faces a red sea that has already been largely divided.

In terms of performance, Pop Mart stands out prominently. Based on data from the first three quarters, industry analysts generally predict that Pop Mart’s revenue for the entire year of 2025 will surpass 40 billion yuan, with a net profit of about 13 billion yuan. Recently, Pop Mart’s annual meeting revealed that by 2025, its global registered members would exceed 100 million, with annual sales of “LABUBU” exceeding 100 million units, and total sales of all潮玩products surpassing 400 million units.

The influx of capital has further intensified industry competition. Since 2025, 52TOYS and Suplay have submitted prospectuses to the Hong Kong Stock Exchange; companies like Heyone, Super Vitality Factory, AYOR TOYS, Wonderful Rabbit, and OHKU have completed new rounds of financing; the listed company HERE (formerly Quantum Song) has acquired the潮玩brand Yiqi Culture Letsvan, and Xiaohuang Duck DeYing has acquired the潮玩company HIDDEN WOOO.

In this market landscape, can Alibaba become the next Pop Mart?

Chen Liteng analyzed that “compared to leading brands like Pop Mart, Lucky Loop is following an IP collection store route, relying on a vast number of global authorized IPs, Alibaba’s comprehensive traffic, data selection, and Xianyu second-hand closed loop to create differentiation, but it lacks original leading IPs and has insufficient offline retail and community operation experience. Alibaba’s ecological and supply chain advantages can quickly amplify channel capabilities, but it is difficult to replicate Pop Mart’s IP barriers; it is more likely to become ‘the Tmall of the潮玩world’ rather than the next Pop Mart.”

This judgment is also supported by Zhou Ting’s agreement. She stated that compared to leading brands like Pop Mart, “Lucky Loop’s” core advantage lies in Alibaba’s online traffic, which can drive short-term performance growth, but long-term development still depends on brand power and product strength. The project is expected to succeed but is unlikely to become the next Pop Mart, as the underlying logic differs; Alibaba focuses on selling goods, while Pop Mart delves deeply into brand and IP operation. Selling goods and building a brand are fundamentally two different logics.

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Editor: Song Yafang