AI-driven toy demand grows in China

The virality of Huawei’s “Smart Hanhan” plush, developed with Robopoet, has lifted demand for AI-driven toys. Sellers in Huaqiangbei said most products remain highly similar, relying on large models and low-cost hardware that limit differentiation. High return rates persist even as major brands enter the market, and analysts expect a shakeout as vendors lacking IP or full-stack capability face rising pressure.