In September 2023, Zhan Huiyu, founder of the trendy toy company Letsvan, discovered a batch of dolls with substandard clothing defects at his Dongguan factory. While the defect rate was imperceptible to the average consumer, the company was in its early stages, with less than a month until the National Day holiday. He was cash-strapped and could have earned 5 million yuan from selling the dolls. However, Zhan, a believer in product excellence, ultimately decided not to sell the dolls after returning to Shenzhen headquarters. It was this unwavering commitment to quality that quickly propelled Letsvan to become a rising star in the trendy toy industry.

On July 19, 2025, Letsvan's SIINONO blind box products sold out the first night they launched, with pre-sales extending into September. Its sales are rivaling those of LABUBU, a leading trendy toy brand. In the eyes of many trendy toy enthusiasts, the only brand that can rival LABUBU, owned by Pop Mart, with a market capitalization of hundreds of billions, is Letsvan's IP, WAKUKU.

Like Pop Mart founder Wang Ning, Zhan Huiyu was a serial entrepreneur and a longtime trendy toy enthusiast before venturing into the toy industry. He recalls, "When I was little, my mother would give me two yuan for breakfast, one yuan for soy milk, and one yuan for fried dough sticks. But I'd rather just eat the dough sticks and save the money for toys."

However, compared to the high profile of Wang Ning and Pop Mart, Zhan Huiyu and Letsvan maintain a relatively low profile, which has a lot to do with Zhan Huiyu's personality. Zhan Huiyu admitted to China Entrepreneur: "I truly prefer polishing the product to marketing." He has a sentimental personality and a fear of loneliness. Having personally experienced the emotional value of trendy toys, he possesses a deep understanding of the product and the industry, allowing him to precisely empathize with user needs. More importantly, his genuine love for trendy toys and the industry has become his unique advantage.

However, improving his marketing capabilities has long been a question Zhan Huiyu pondered. Then, a turning point emerged: Li Peng, founder of Quantum Song, a company with deep marketing expertise, came into his view.

Starting at the end of 2024, Quantum Song gradually began its acquisition of Letsvan, completing a controlling stake of approximately 61% by June 2025. This helped Quantum Song achieve revenue of approximately 571 million yuan and a net profit of approximately 41.14 million yuan in its third-quarter 2025 financial report released that month, leading to a surge in its stock price by approximately 20%.

At the end of July, Quantum Song acquired the remaining equity in Letsvan for a combination of cash and stock. On August 3, Letsvan simultaneously launched a brand strategy upgrade, transforming from "Letsvan Sparkling Culture" to "Letsvan Dream Island."

Zhan Huiyu told China Entrepreneur that after the upgrade, Letsvan will move beyond incubating IP and focus on building an open ecosystem that connects designers, artists, and users through IP, becoming a platform that supports global trendsetting art and creativity.

In 2020, the trendy toy industry experienced a boom. Pop Mart went public on the Hong Kong Stock Exchange in December of that year, quickly surpassing HK$100 billion in market capitalization. Zhan Huiyu, a veteran trendy toy enthusiast, had previously started businesses in other fields. Seeing his passion become a hot field, he resolutely decided to establish Letsvan, considering it his "last entrepreneurial venture."

However, this wasn't the best time to enter the market. Between 2020 and 2022, over 800 new trendy toy companies emerged in China, with brands like 52TOYS and ToyCity emerging, and companies like Miniso and Youku also expanding into other sectors to capture market share. Meanwhile, industry controversy intensified. Pop Mart sparked repeated public outcry over issues like "secondary sales." Its stock price plummeted in December 2020, wiping out HK$15 billion in market capitalization in less than three months after its IPO. Many believed that developing proprietary IP was time-consuming and relied on "luck" to achieve success. Zhan Huiyu's parents and classmates also struggled to understand the industry, viewing trendy toys as just ordinary toys.

But Zhan Huiyu firmly believes that emotionally valuable IP holds enormous potential for future development. Even when Pop Mart's market capitalization plummeted to a low of HK$14 billion by the end of 2022, he remained steadfast, leveraging his deep understanding of the industry and entrepreneurial experience to guide Letsvan through the fierce competition.

Amidst industry controversy, the company's infancy, and its original IP lacking traction, Letsvan took on "commercial orders" from clients like banks to survive. However, the client's demand for cost reductions forced the company to compromise on materials and other aspects. During that time, Zhan Huiyu developed stress-related obesity and fatty liver disease due to stress, anxiety, and late nights, yet he remained meticulous about details like the materials and plush of the commercial products, insisting on uncompromising quality. He believes that productism is a long-term approach, and that respecting the market and users, and diligently developing and commercializing IP are the key to long-term success. In the long run, his current choices will ultimately prove to be the right ones.

During the most challenging period of 2022, when his 15 million yuan angel investment was exhausted, Zhan Huiyu pledged his entire savings and took out loans to get through the difficult times. Despite the high pressure, he remained optimistic and firmly believed that "great works are often born in the most trying moments." At the end of 2022, the company launched the Youli IP blind box, featuring a traditional Chinese design and macaron-colored cartoon "Lolita" princess dolls. These blind boxes quickly became a hit, with cumulative sales exceeding 3 million units, earning it the title of "China's No. 1 Princess IP." In 2023, Letsvan's PIDOL "Want to Give You a Gift" series and ZIYULI Youli "Spring and Spring Seeking Spring" series both reached the top two on Tmall's best-selling blind box charts, surpassing Pop Mart's flagship products during the same period.

Market feedback strengthened Zhan Huiyu's resolve to develop his own IP. He developed a methodology: "avoiding self-indulgence, focusing on the market, and prioritizing accumulation." Idolizing Steve Jobs, he ingrained his philosophy of "taste," constantly researching products and reviewing hundreds of products daily to refine their performance.

In 2024, Zhan Huiyu and his team created the core IP, "Little Wild Child" WAKUKU. This character, known for his adventurous nature, bravery, strength, and a touch of rebellion, perfectly aligns with Zhan Huiyu's own personality. His Maomao Trendy Party Series blind boxes have names like "Become a Rebel" and "Sing Rock."

Among trendy toy enthusiasts, WAKUKU is second only to LABUBU, placing it in the same second tier as Pop Mart's Molly and Dimoo IPs. In July of this year, WAKUKU's first hanging tag was released at MINISOLAND's No. 1 store in Beijing, and it sold out in less than two hours.

As Letsvan grows, the trendy toy industry continues to thrive. According to data from Guoyuan International Securities, the global toy market, measured in gross merchandise volume (GMV), is projected to grow from 631.2 billion yuan in 2019 to 773.1 billion yuan in 2023, a three-year compound annual growth rate of 5.2%. This growth is expected to further reach 993.7 billion yuan in 2028. However, these greater opportunities also present greater challenges.

While WAKUKU's explosive popularity proves the saying "good wine needs no bush," marketing remains a core strategy in the trendy toy industry. Prior to Quantum Song's acquisition in March 2024, despite Letsvan's popularity, founder Zhan Huiyu was rarely seen in public, and there was little information about the brand. His reserved personality excelled at product development rather than marketing narratives. However, as the leader of a company with hundreds of millions in revenue, Zhan Huiyu understood the need to strengthen marketing capabilities to drive business upgrades.

Quantum Song quickly reached a consensus on the Letsvan acquisition. Founder Li Peng and Zhan Huiyu were longtime friends, frequently discussing the trendy toy market and products. A serial entrepreneur, Li Peng possesses extensive experience in both large internet companies and online education, and is well-versed in marketing and large-scale corporate management. Zhan Huiyu viewed this partnership as a mutually beneficial partnership, rather than a simple acquisition.

After the acquisition, Letsvan quickly ramped up its marketing efforts, continuing the trendy toy industry's classic strategy of "celebrity endorsement," partnering with entertainment giant Lehua Entertainment. Industrial and commercial information shows that the two parties jointly hold shares in the company "Walking with Hua" in 2024. Lehua Chairman Du Hua not only presented WAKUKU to many celebrities at the Huabiao Awards, but also gave it as a gift when meeting with football star Beckham.

After addressing its marketing shortcomings, Zhan Huiyu led Letsvan to accelerate its growth, launching two hit products in just six months in 2025: the new generation WAKUKU Fox-Rabbit series sparked a buying frenzy. SIINONO, released in July, surpassed 1.5 million yuan in sales within three days of its launch, with over 10,000 boxes sold in its first 10 minutes, setting a new record for new product launches.

In terms of distribution channels, the post-acquisition Letsvan has expanded its existing distribution channels, including MINISO, by focusing on self-operated sales, adding its own livestreaming studio. Currently, the sales split between official and other channels is approximately 50:50, and this proportion will gradually increase.

Letsvan's original Chinese name, "Yi Qi Wen Hua," is a homophone for "together culture." Zhan Huiyu believes that great companies thrive on collaboration, not individual heroism. "A group of people can go further," and the partnership between the two companies is more like "jointly re-starting a business." He stated that as the company matures, he is transitioning from an entrepreneur to one more aligned with a long-term perspective.

In 2025, emotional value will become the key to consumer traffic, and Zhan Huiyu, at the forefront of this trend, is well aware of its significance and power.

Born in 1984 into an ordinary working-class family, Zhan Huiyu, an only child, often spent his holidays at home alone because his parents were too busy with work to spend time with him. Friday was the day he looked forward to most—his father would return from business trips with toys like One Piece. When his parents were away, these dolls became his companions. He would arrange formations for them, invent plots for them, and make them "fight" and "fall in love." When his father promised to buy him a limited edition Bumblebee, he began anticipating it from Monday, even losing sleep over it.

This kind of companionship and anticipation became Zhan Huiyu's initial experience and understanding of the value of emotions. He stated that founding Letsvan was different from his previous ventures because it stemmed from pure passion: "For my last startup, I had to do what I love. How many times in my life can I risk my life for what I love? This passion unleashes all my potential."

With growth and industry development, Zhan Huiyu gained a new understanding of the value of emotions. He told China Entrepreneur that the emotional value of a product lies not only in companionship but also in helping users release their emotions. In his view, each IP design embodies specific values, attitudes, and spiritual propositions that resonate with young people and help them navigate the negative emotions of reality. For example, SIINONO's design philosophy is "dare to say no, don't try to please others, be true to yourself, and accept imperfection."

The SIINONO blind box sold out immediately after its release on July 19th, with no stock available online or offline. Pre-sales were scheduled until September, and even Zhan Huiyu himself didn't have the complete set when he was interviewed on July 29th.

After becoming a dark horse in the trendy toy industry with its hit product, Zhan Huiyu accelerated his business development. On August 3rd, Letsvan changed its Chinese name from "Yiqi Culture" to "Qimengdao." Designers can join the platform and publish their work, which will be available to users after signing a contract. Zhan Huiyu explained that "Qimengdao" is an ecosystem that connects designers, artists, and users through IP. Each IP is a "native," while the artists and users are "islanders."

Zhan Huiyu stated that while designers and artists possess outstanding creative capabilities, they lack commercial advantages. Qimengdao, on the other hand, precisely connects various groups within the trendy toy ecosystem, helping users unleash their emotions while empowering designers to commercialize their products. This marks the first time a company in the trendy toy industry has integrated IP and users into the same ecosystem.

Faced with fierce competition from numerous industry players, Zhan Huiyu defines Letsvan as a "cheetah": "Elephants have their own way of surviving, ants have their own way of surviving, and we rely on fast response and closer proximity to the market to gain a foothold." Speed is indeed its core advantage. As of 2024, four years after its founding, Letsvan has incubated 15 of its own IPs. WAKUKU achieved widespread popularity in less than a year, while the trendy toy sensation LABUBU took 10 years.

But along with these advantages come challenges. As Zhang Yi, founder and CEO of iMedia Research, put it, "Cheetah's advantage lies not only in speed but also in its endurance. The trendy toy industry is growing rapidly, and the ability to keep up with product development relies heavily on the supply chain. This places a significant strain on capital costs, a hurdle Letsvan must overcome."

Speaking of the future, Zhan Huiyu expressed confidence: "We expect to launch two more major IPs in the second half of the year."