Click the blue text to follow us
In 2025, AI toys have transitioned from a novelty concept to an integral part of children’s daily lives. Toys are no longer passive responders to one-way commands; they have become “growing partners” equipped with emotional perception and adaptive capabilities. They can capture children’s emotions, abilities, and interests in real-time through multimodal interactions, dynamically generating unique stories, challenges, and learning paths.
#AI Toy Frontier believes that the core trend of AI toys is the deepening of “edutainment”.
AI toys are no longer simple knowledge transmitters; they are catalysts for stimulating creativity, cultivating critical thinking, and enhancing social-emotional skills. They provide personalized developmental support based on each child’s pace, marking the formal entry of children’s entertainment and education into a highly personalized intelligent era.
Many companies have already implemented this concept and achieved good results, among which the main representative listed companies include:Alpha Group(002292),Star Shine Entertainment(300043),Shifeng Culture(002862),Gaole Co., Ltd.(002348),Talking Tom(300459),Huali Technology(301011), etc.01Comparison of Business Layouts of Representative Companies in AI ToysIn terms of regional layout among listed companies in the industry, the international market constitutes their main business scope. Specifically, Shifeng Culture’s overseas revenue contribution exceeds 60%, reaching 61.47%; Talking Tom’s overseas business proportion is as high as 76.82%, indicating the significant role of this sector in corporate revenue.From the perspective of product structure, the current development paths of representative domestic AI toy companies mainly focus on three directions: first, derivative development around existing intellectual property; second, promoting technological integration of smart robot categories; and third, focusing on new toys with emotional interaction capabilities. In terms of pricing strategy, such products are generally positioned in the mid-to-high-end range, with a price distribution covering a complete range from basic models priced in the hundreds to high-end configurations exceeding thousands.Specifically, entry-level AI toys are generally priced between 300 and 400 yuan, with core capabilities centered on large model dialogue functions, typical products include FoloToy’s “Little Bear Lele” and Haivivi’s “BubblePal”. The mid-range product line is priced around 2000 yuan, integrating enhanced features such as dynamic visual expression and emotional perception on top of basic interaction functions, represented by the Ropet smart robot. The high-end market is positioned at the ten-thousand-yuan level, focusing on programmability and highly anthropomorphic interactive experiences, such as the series of high-end products launched by Lesun Robotics.
Chart 1: Business Layout of Listed AI Toy Companies in China in 2024
Chart 2: Business Layout of Non-Listed AI Toy Companies in China in 2024
02Latest Investment Trends and Business Plans of Representative Companies
Looking ahead, the Chinese AI toy industry shows four development trends:
In terms of technology, companies continue to deepen the integration of artificial intelligence applications, focusing on integrating capabilities such as multi-turn dialogue, emotional response, and semantic understanding, while actively laying out edge model deployment and multimodal interaction in cutting-edge directions to enrich application scenarios.
In terms of products, the industry is striving to promote IP and emotional transformation by endowing toys with distinct personality traits and deep interaction capabilities to meet the emotional companionship needs of consumers of all ages, while enhancing market appeal through IP operations.
In terms of industrial collaboration, companies are integrating resources through strategic alliances and association collaborations to jointly promote the establishment of industry standards and the transformation of technological achievements.
In terms of market strategy, a globally synchronized expansion strategy is adopted, combining online and offline channels with new media marketing to systematically build brand influence and actively participate in international competition.
Chart 3: Comparison of Business Investments and Plans of Listed AI Toy Companies in China in 2024
END
#AI Toy Frontier Looking at the business of representative companies in the AI toy industry, we can see:
“Technology + IP” integration is the core competitiveness: The current state of the industry indicates that mere technology or IP alone is no longer sufficient. Leap Innovation actively integrates leading technology while laying out top IPs like Ultraman; Alpha Group uses AI technology to activate its classic IP “Pleasant Goat and Big Big Wolf”.
The future winners will undoubtedly be those who can perfectly integrate the two, giving “soul” to IP through technology and making technology “warm” through IP.
Business models are shifting from “one-time sales” to “continuous services”: A fundamental change in AI toys is that they can continuously add new skills and content through remote updates. This means that the business model has the opportunity to extend from one-time sales to obtaining continuous revenue throughcontent updates and subscription services, greatly extending the product’s lifecycle and value.
Data privacy and content security are the cornerstones of industry development: As toys become “smart” and constantly interact with children,data privacy and security have become the “sword of Damocles” hanging over the industry. Industry experts have pointed out that ensuring the legality and compliance of data collection and usage, and protecting children’s privacy, are essential issues for building a safe and trustworthy AI toy ecosystem. This is not only a regulatory requirement but also a key to gaining parents’ trust.
The competitive landscape of the industry is still evolving, and there are opportunities in niche markets. The market is still in the early explosion stage, and brand concentration is rapidly increasing.
For new entrants or small and medium-sized enterprises, rather than competing in the mainstream red ocean, it is better to focus onspecific age groups (such as the elderly), specific functions (such as programming education), or specific content forms in niche tracks, which also have opportunities to secure a place.
Follow me
to get more insights into AI toy news
AI Toy Frontier WeChat ID: AiToysXYDM Video ID: AI Toy FrontierTap “Looking” to receive the latest news every day!