This Company May Just Have Bought The Next 'Pop-Mart', And More Importantly, It’s Nasdaq-listed

When Pop Mart reported staggering revenue of 10.6 billion yuan with 106.9% YoY growth, another significant development was unfolding in the industry: Nasdaq-listed QuantaSing Group Ltd (QSG) quietly finalized its acquisition of a 60% stake in emerging designer toy brand Letsvan for 210 million yuan.  

This move marks a strategic pivot for QSG, originally an adult online education provider with multiple learning brands, as it enters the IP-driven consumer market. By targeting younger demographics and emotional consumption, the deal positions Letsvan as the first Chinese trendy toy company under a Nasdaq-listed umbrella.  

Founded in 2020, Letsvan initially flew under the radar in China's competitive toy market. However, its fortunes began to shift in 2024 with the breakout success of two original IPs: WAKUKU and ZIYULI. In early April, WAKUKU's limited-edition Panda figure sold out within two hours at MINISO LAND's flagship Beijing store, propelling the brand into the industry's spotlight. Some analysts now rank WAKUKU just behind top-tier IPs like Molly and Dimoo, trailing only Pop Mart's LABUBU. Meanwhile, ZIYULI, known for its pastel colors and kawaii aesthetic, has reportedly surpassed 3 million units in sales.  

What sets Letsvan apart, according to industry insiders, is its precision in niche targeting and strong B2B channel integration, ensuring products reach the right audiences. But the company's ambitions extend far beyond its current success.  

WAKUKU exemplifies Letsvan's innovative approach. Tapping into the global "soft toy economy" popularized by LABUBU, WAKUKU's plush and vinyl figures cater to Gen Z's desire for self-expression with portable, wearable designs that encourage social sharing. The brand also pushes boundaries with ultra-soft, durable fabrics, movable limbs for enhanced playability, and customizable accessories—features that redefine interactivity in the collectible toy space.  

Letsvan is already expanding its footprint overseas, staging pop-ups and exhibitions across Southeast Asia, a region where Pop Mart has already established a strong presence.  

The broader market context is equally promising. According to Frost & Sullivan, the global toy market has grown steadily from 631.2 billion yuan in 2019 to 773.1 billion yuan in 2023, with a 5.2% CAGR. Projections suggest further expansion to 993.7 billion yuan by 2028, driven by rising demand for IP-based toys, improved R&D capabilities among domestic companies, and the emergence of innovative toy categories.  

With QSG's backing, Letsvan is poised for accelerated growth. The parent company has pledged full support for an omnichannel strategy, integrating online and offline retail systems to build a seamless ecosystem, from IP creation to immersive consumer experiences. Leveraging QSG's digital marketing expertise, Letsvan aims to transform into a key consumer goods division within the group.  

Notably, QSG founder and chairman Li Peng is personally leading this strategic shift, assembling a dedicated team to elevate Letsvan from a "Chinese trendy toy pioneer" to a "global trendy toy leader." As the industry continues to evolve, Letsvan's unique positioning and bold vision suggest it may soon carve out a much larger space in the global toy market.