QuantaSing Group Ltd. (QSG.US) is learning there are many ways to get cautious consumers to part with their hard-earned money in a sluggish economy.
First, it did that by selling education products to adults, playing on the deeply engrained value Chinese place on self-improvement for themselves and their children. Now it’s discovered something people like even more in such economically uncertain times. That something is adult toys, part of what’s locally called the “good economy” that refers to products that help people play in the present to avoid thinking too much about the future.
Discussion of QuantaSing’s recent movement into collectible toys was the highlight of its latest quarterly results announced last Friday. The company’s announced that it completed its purchase of 61% of Shenzhen Yiqi Culture Co. Ltd. on March 31 for 235 mln yuan ($33 million) in cash. Yiqi’s main asset is Letsvan, which makes collectible toys for adults that have become all the rage in China lately.