The latest entrant to China’s companionship economy: AI Toys

Artificial intelligence companion toys today analyse preferences, intentions and emotions to be more attuned to each user over time.


East Asia

The latest entrant to China’s companionship economy: AI Toys

Artificial intelligence companion toys today analyse preferences, intentions and emotions to be more attuned to each user over time. 

The latest entrant to China’s companionship economy: AI Toys

Meet the Fuzozo – a fluffy AI companion robot pet that feels emotionally alive. (Photo: CNA/Emil Wan)

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SHANGHAI: There is a new competitor in China’s companionship economy. It can comfort you, suggest activities for your day and remember past conversations – all while fitting in the palm of your hand. 

“You can talk to me about anything. I will always be with you,” chirps Fuzozo, a pocket-sized artificial intelligence companion in the shape of a furball. 

The robot pet is one of China’s most popular AI companion toys, priced at 399 yuan (US$60). 

The brainchild of Shanghai-based company startup Robopoet, Fuzozo’s software comprises a combination of various large language models, including a self-developed “multimodal emotion model” that delivers human-like interactions. 

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The palm-sized Fuzozo responds to touch and interaction. Users can even dress up their plushie with various accessories. (Photo: CNA/Emil Wan)

The toy analyses conversations to determine a user’s preferences and intentions, allowing it to become increasingly tailored to its owner over time. 

Each model has a profile mapped to one of the 16 Myers-Briggs Type Indicator (MBTI) personality archetypes. This means some Fuzozos are more stubborn and clingy, while others are shyer and more empathetic. 

Users can also train the plushie’s personality through interactions. 

Since its launch in June last year, more than 250,000 units have been sold. Following a successful pop-up store, Robopoet opened a 120 sqm flagship outlet in Shanghai’s downtown Xujiahui district in May this year. 

In the same month, the company launched its crowdfunding campaign in Japan and told CNA it plans to broaden its international footprint, including into the United States. 

The Fuzozo store in Shanghai. Robopoet, the company that owns the brand, plans to expand into international markets. (Photo: Fuzozo)

EXPANDING SECTOR 

China’s AI companion toy sector is growing rapidly, with hundreds of brands available on e-commerce platform Taobao. Prices range from around 99 yuan to as much as 29,800 yuan. 

Products are targeted at different demographics, including children and the elderly. 

AI companion toys secured a spot on Taobao’s annual top-10 product list for the first time last year, with transaction values surging 1,600 per cent year-on-year.

The category’s rise comes as China experiences a growing number of one-person households, driven by decades of the one-child policy, urbanisation and a growing number of young people choosing not to get married

Official statistics showed there were 125 million single-person households in the nation last year. Some estimates suggest the number of people living alone could reach between 150 million and 200 million by 2030.

APPEAL OF AI TOYS 

At Fuzozo’s pop-up store, 10-year-old Lucas and his older sister each purchased one. The siblings, who were visiting China from Canada, already have a dog at home but are still attracted to the AI toy. 

“These guys don’t pee and poo,” said Lucas. “They can talk to you.” 

Despite enjoying the toy, the children said they would still turn to their parents if they had worries about school or other concerns. 

An AI algorithm engineer also bought a Fuzozo for his family, noting that both his children and elderly members of his household already interact regularly with AI chatbots such as Doubao. 

“Doubao is just an app. But a toy is a physical object,” said the Shanghai resident. “If you let a child use a phone, the child might start scrolling Douyin or other programmes. This physical toy means easier management.”

“RETURN TO HUMANS”

Another AI companion toy that has recently entered the market is SuperMait’s Lulupal. Unlike Fuzozo, Lulupal is significantly larger and designed for children to hug while sleeping. 

The company says the toy can monitor a child’s sleep quality and heart rate. 

Lulupal, a larger AI companion toy suitable for hugging. (Photo: CNA/Emil Wan)

Parents, who are typically the primary users, can access stored data including records of conversations between their children and the toy. 

Founder Zhu Wenjing said companion products are designed to support human relationships, not replace them. 

“We must stick to one principle: no matter how technology or hardware companions develop, we must return to humans,” he said.  “When children lack parental company, the product can step in to ease that emptiness and provide comfort.” 

Lulupal founder Zhu Wenjing. (Photo: CNA/Emil Wan)

Zhu believes the toy will serve only as a temporary companion during a particular stage of a child’s development and will not distort the child’s understanding of real-world relationships.  “Our core job is to play the right part matching their development stage,” he said. 

CHINA’S HUNT FOR ‘EMOTIONAL VALUE’ 

AI companion toys are part of China’s growing emotional economy – a segment of consumption driven primarily by emotional and psychological needs. 

In this case, that need is companionship. 

“Emotional value” will become increasingly important over the long term, said Zhang Tianbing, Deloitte China’s consumer industry leader. 

On the supply side, businesses are creating products that evoke emotional connections in order to stand out in an increasingly crowded marketplace. 

On the demand front, Zhang said a more individualised generation facing economic uncertainty and slower growth is turning to products and services that provide comfort and a sense of stability. 

“Both the conflicted world and the prevalence of social media – which seems to have connected a lot of people — have in reality isolated people from society. (As a result,) emotional value, in a real sense, becomes even more important.”  



Source: CNA/dn

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