From playful plush figures and vinyl characters to museum-inspired cultural designs and scenic-area souvenirs, bag charms have become a defining accessory for young people across China. These small items now swing from backpacks and handbags, turning everyday carry-ons into expressions of personality and taste.
Compact, lightweight, and easy to collect, bag charms are rapidly gaining traction among Chinese consumers. Constantly refreshed designs have driven a surge in demand, supported by well-developed manufacturing clusters and increasingly coordinated overseas expansion. Together, these forces are shaping what is now widely known as China’s emerging “bag-charm economy.”
Inside a designer toy store in Beijing, shoppers eagerly pose with Wakuku characters before sharing photos online. According to Hong Yong, an associate researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, the appeal lies in a simple formula. “Their small size, affordable price points, and strong emotional appeal align closely with the lifestyles of young consumers,” he said.
Hong noted that emotion-led consumption is changing buying behavior. Instead of focusing purely on functionality, younger shoppers increasingly seek products that offer happiness, emotional connection, and opportunities for self-expression.
This shift is evident in everyday choices. Ahead of the Chinese New Year, Nanjing resident Wu Wenjing bought new outfits not only for her family but also for her Labubu bag charm. “I choose charms based on my mood and what I’m wearing,” she said. “They sometimes feel like emotional symbols — when others recognize them, it creates an instant bond.”
Liang Mei, president of the China Toy and Juvenile Products Association, observed that bag charms deliver small moments of joy through a low-pressure consumption model. By encouraging emotional engagement, they help young people form interest-based communities and shared identities. At the same time, collaborations with popular intellectual properties (IPs) and user-driven co-creation continue to energize the market.
Behind this trend stands Dongguan, widely known as China’ s “designer toy capital.” The city hosts more than 4,000 manufacturers and 1,500 supporting enterprises, forming a complete industrial ecosystem that spans design, production, IP licensing, and sales.
At a toy manufacturer’ s headquarters in Chashan Township, Dongguan, a team of ten designers recently reviewed concepts for a new “Baku” bag-charm series. “This China-chic design combines traditional colors and auspicious symbols with a modern aesthetic,” explained Wu Qiaomei, the brand’ s marketing director. Inspired by the mythical Baku — believed to consume nightmares and bring pleasant dreams — the charm conveys wishes for good fortune in the year ahead.
Wu said the initial design phase typically takes around 15 days, followed by another three to five days to produce the first plush prototype. “Because we manufacture in-house, we can stay flexible,” she noted. “From final design approval to mass shipment, the entire process usually takes about 30 days.”
As styles diversify and trends shift quickly, bag charms demand highly responsive production. Consumer enthusiasm is backed by a major transformation on the supply side — a move away from large-scale mass production toward flexible, customized manufacturing. China’s mature toy industry provides the capacity needed to respond quickly to changing tastes.
In the past, producing plastic toys required costly mold development, often running into tens of thousands of yuan, making large production volumes essential to reduce unit costs. Today, smart manufacturing and digital workshops have changed the equation. Small batches of as few as 50 units are now viable, while 3D printing even allows for single customized pieces.
Labubu has helped propel this trend onto the global stage. Following the popularity of the animated film Nobody, bag charms featuring its characters repeatedly sold out after going viral online. At the same time, charms inspired by traditional Chinese herbs — such as goji berries, red dates, and red sage — have attracted overseas consumers with their creative designs and distinctly Eastern aesthetic.
Time magazine has noted that China’ s new generation of trendy toys is reshaping the global image of “Made in China,” shifting it from mass production to storytelling rooted in local IPs and original design.
This momentum is reflected in overseas sales. In the first half of 2025, Chinese toy company Pop Mart recorded triple-digit growth across Southeast Asia, Europe, and the Americas, with sales in the Americas rising more than tenfold. Its global store network has now surpassed 570 locations.
Meanwhile, products from the brand HERE have entered nearly 20 countries and regions, including North America, Europe, Southeast Asia, and the Middle East. Li Peng, chairman of HERE, emphasized that success abroad depends on more than manufacturing strength. “Localized creativity and emotional connection are essential for helping Chinese brands move up the value chain and build lasting global recognition,” he said.
Looking ahead, as more Chinese brands expand internationally, these small charms — infused with creativity, culture, and emotion — are poised to carry increasingly vivid Chinese stories onto the global stage.
