China's Gen Z consumers are fueling a new wave of growth in the country's toy and collectibles markets, with Tmall and Taobao platforms reporting record-breaking performance during this year's "618" mid-year shopping festival.

From May 13 to June 12, six flagship stores on Tmall and Taobao surpassed 100 million yuan ($13.9 million) each in sales. The stores included Pop Mart, miHoYo, Shanghai Disney Resort, Jellycat and LEGO. Nearly 100 merchants exceeded the 10 million yuan mark, according to official platform data.

Sixteen individual products crossed the 10 million yuan threshold, and nearly 800 products recorded over 1 million yuan in sales. More than 2,400 collectible stores on Tmall posted triple-digit year-on-year growth.

The standout performance reflects the growing demand for licensed and intellectual property-based merchandise among China's young consumers.

The Walt Disney China, for example, launched a nationwide campaign tied to its Stitch IP. According to Walt Disney last year, retail turnover from Stitch-licensed merchandise in Chinese mainland had grown nearly fourfold over the past three years. The release of Lilo & Stitch: The Series is expected to further boost demand.

As of May 16, the brand had collaborated with 66 licensees, developing themed products spanning toys, apparel, electronics, and food categories. The Stitch collection was launched for purchase across more than 4,000 Miniso stores. The company has also launched pop-up activation in major cities including Suzhou, Guangzhou, and Beijing since May.

Stitch-themed installations were also rolled out across 149 Wuyue Plaza malls, aimed at engaging families and younger fans.

The rise of the "guzi" economy — shorthand for derivative products based on intellectual properties in comics, games, and novels — continues to transform China's consumer market. Tmall introduced more than 200,000 new collectible products during the first phase of this year's 618 festival, covering around 2,000 IPs.

Gaming and e-sports merchandise saw a sales spike of more than 80 percent year-on-year. Popular products included plush dolls, standees, and laser-etched collectibles.

According to e-commerce advisory Analysys, emotional value and identity expression are emerging as dominant themes in China's consumption landscape. In its "2025 618 First Wave Review," the firm cited the collectibles boom as evidence of consumers seeking personalized and meaningful purchases.