CMSC: Traditional Toys + Large Scale Models Capability Accelerates the Landing of Companion Scenes in the New Consumption Trend.

According to a research report released by CMSC, various AI toy products were exhibited at the recent CES exhibition. Among them, a pet-shaped hardware Siasun Robot & Automation Ropet attracted wide attention. With the rapid iteration of large models both domestically and internationally in multimodal capabilities, the combination of AI technology with trendy toys also provides new ideas for the landing and commercialization of edge AI in companion scenarios. With active deployment by manufacturers both domestically and internationally and impressive product performance, the outlook is positive for the acceleration of AI toy landing and commercialization. It is recommended to pay attention to companies that focus on "toys + quality IP + large models" in their layout to benefit from opportunities. Key points from CMSC include: Innovation of various AI toy products at CES exhibition, clear trend of product characteristics upgrading and diversification of functions At the recent CES exhibition, various AI toy products were exhibited, with one pet-shaped hardware, Siasun Robot & Automation Ropet, attracting widespread attention. Ropet has a small and cute oval-shaped plush appearance with expressive eyes, targeting women aged 27-35. It emphasizes interactive experience and emotional comfort, greatly satisfying the emotional companionship needs of users. The product is compatible with iOS and Android, priced at $299 and $319 (Ropet Pro) with optional accessories such as base lights. Different from previous smart toys, Ropet can develop unique behavioral characteristics and interaction patterns. By capturing users' facial expressions, voices, tone changes, body temperature in different states through an integrated multimodal perception system, and learning and decision-making logic design through built-in edge models, it develops unique personalities and behavior patterns, making the experience more diverse, intelligent, and unique, breaking the uniformity. Continued upgrading of large model capabilities, acceleration of AI combined with trendy toys landing in companion scenarios Since 2024, large models domestically and internationally have been rapidly iterating in multimodal capabilities, with accelerated applications in various segmented fields. The combination of AI technology with trendy toys also provides new ideas for the landing of edge AI. Currently, AI toys combine the capabilities of large models with traditional toy characteristics, realizing the combination of AI hardware with companion, educational, and other application scenarios, enhancing interactivity and intelligence. Combined with the "emotional value consumption" characteristics of trendy toys, under the new consumer trend, there is potential to combine with various high-quality IPs to achieve a broader commercial space. Representative products currently on the market include BubblePal, Byte's "Visible Bag," and Casio's collaboration with the startup Vanguard Industries for the AI machine pet Moflin released in November, all of which have far exceeded market expectations, demonstrating the huge potential demand for AI trendy toy products. Initial verification of potential market demand, AI toys expected to usher in a period of product explosion CMSC believes that in the landing scenarios of edge AI, AI toys have a wide target audience covering various scenarios such as emotional companionship, education, and popular science. Through the combination with trendy toys and IPs, more diverse product development and landing are expected, bringing benefits to the industrial chain companies and investment opportunities. Recommendations: 1) Companies with layouts in AI toy products, such as Alpha Group (002292.SZ) (AI Smart Xiyangyang), Zhejiang Jinke Tom Culture Industry (300459.SZ) (Zhejiang Jinke Tom Culture Industry AISiasun Robot & Automation), Shifeng Cultural Development (002862.SZ) (Magic Star AI Toy), Rastar Group (300043.SZ), etc.; 2) Companies with rich and high-quality IP reserves that are expected to benefit from AI toy licensing or cooperation, such as Shanghai Film (601595.SH) (cooperating with BubblePal), CHINA LIT (00772), COL Group Co., Ltd. (300364.SZ), etc.; 3) Companies actively deploying AI large models and multimodal capabilities, such as TENCENT (00700), Visual China Group (000681.SZ), Kunlun Tech (300418.SZ), iFlytek Co., Ltd. (002230.SZ), Wondershare Technology Group (300624.SZ), etc. Risk warning: Intensified industry competition, slower than expected application landing progress, regulatory risks.