Cutesy toys need to imprint on humans to be effective

The emotional connection must create loyalty that outlasts the campaign itself.

Plushies from Milo to KFC have managed to create buzz, but they might not be as effective as a marketing tool in the long run in a saturated market, according to analysts.

“At this point, just releasing a plushie isn’t enough,” Juda Kanaprach, co-founder and chief commercial officer at Milieu Insight, told Singapore Business Review. “People have seen so many already, and the market is becoming saturated.”

“We’re reaching a point where people are going to get a lot more selective about the toys they care about. As more and more brands jump in, consumers, especially Gen Z and Millennials who drive online trends, will start filtering more seriously,” she said in an emailed response.

Several brands have launched plush toys in Singapore this year, including Pizza Hut, McDonald’s, and local names like Singtel.

Ashutosh Awasthi, director at market research firm Kadence International, said plushies are not sustainable as a marketing strategy in the long run due to their short shelf life.

“The duration until plushies become or remain a craze will be limited, which will put a lot of pressure on the cost-efficiency of the promotions or the money brands are investing in it,” he told Singapore Business Review via Zoom.

He added that plushies are better suited for brands that are trying to revive their image rather than for routine campaigns.

Companies eager to use collectables as a promotional or marketing tool should explore digital alternatives such as virtual plushies or app-based characters that offer emotional value at a fraction of the cost, Awasthi said.

“Eventually, this will be the way to go if brands want to balance the emotional power plushies offer without making it a very cost-intensive initiative,” he said. “It also allows them to roll out similar campaigns more regularly.”

Kanaprach said toys that carry a brand’s story or message in a way people can relate to are the ones that stand out.

“Exclusivity also makes a difference,” she said. “Limited editions, surprise releases, or fan-designed characters can elevate a plushie from a novelty to something people genuinely treasure.”

“That feeling of having something unique, even if it’s small, adds real value,” she added.

Kanaprach said toys should spark emotions, “not just something cute that gets tossed aside after a week.” 

Companies that can tap into that emotional connection will see more than just a sales boost; they’ll also see stronger engagement, more foot traffic and app downloads.

Years after the original release of McDonald’s Hello Kitty campaign, people were still collecting full sets and even trading these online, she pointed out.

McDonald’s US sales rose 0.3% year on year in the third quarter of last year, when it released the Yu-Gi-Oh! x Hello Kitty Happy Meal, rebounding from a 2.2% drop a quarter earlier.

“That kind of long-term behaviour isn’t just about design,” Kanaprach said. “It’s about emotional connection. That’s the real return for brands, creating loyalty that outlasts the campaign itself.”