Taobao Maker Festival kicks off in Hangzhou

Tung said the festival carries the essence of the Taobao platform, which gives young Chinese people an avenue to freely express themselves and form a community with likeminded friends.

Jia Jinkai, who runs two toy studios-Litor's Works and W36 Toyland-on Taobao, agreed, saying the company's core consumers are women aged 25-40, who have the financial leeway to purchase palm-sized toys priced 500-900 yuan.

He said the designs are designed to address people's psychological need to get comfort and be pampered in an increasingly competitive environment.