Welcome to the latest episode of Toy Business Unboxed, where we explore a challenge every parent knows too well: keeping plush toys truly clean. Dust, allergens, and bacteria make traditional cleaning methods fall short, leaving families searching for better solutions. Anna, co-founder of CuddleCity, tackled this head-on by creating washable, interchangeable, and durable plush toys built for modern families. Her journey from industrial designer to toy innovator is a masterclass in solving real problems with clever, scalable ideas.
#127: The Plush Toy Problem: The Fix Parents Need – Toy Business Unboxed
Episode Highlight
- 00:00 Introduction to Toy Business and Guest Background
- 02:03 Inspiration Behind Cuddle City
- 04:44 Innovative Plush Toy Design
- 07:15 Kickstarter Experience and Lessons Learned
- 09:33 Consumer Feedback and Product Improvement
- 11:35 Co-founder Dynamics and Operations
- 13:43 Navigating Tariffs and Pricing Strategies
- 15:19 Future Product Developments
- 16:33 Importance of Washable Toys
- 20:43 Advice for Aspiring Toy Entrepreneurs
The Motivation Behind CuddleCity: Recognizing a Common Problem
Anna’s journey began with a personal experience as a newcomer to the US, relying on a giant teddy bear that was too big to wash. As a mom, she noticed that plush toys are magnets for dust and bacteria, and existing cleaning methods are inadequate. This realization led her to develop a toy line that grows with the child, stays clean, and reduces waste. CuddleCity offers a solution that addresses hygiene concerns while fostering kids’ imagination and emotional connection, providing peace of mind for parents.
The Cover-Plus-Insert Concept: Revolutionizing Plush Toy Design
CuddleCity’s innovative design features a cover plus insert system, similar to swapping pillow covers. A removable cover reveals a universal insert that stays inside, allowing parents to change the toy’s appearance easily. This design makes cleaning straightforward and extends the toy’s lifespan, reducing the need for multiple toys in a child’s collection. It’s practical and environmentally friendly, offering a customizable experience for kids that encourages creativity and play.
From Idea to Production: The Journey of Creating Washable Plush Toys
Born from a close observation of plush toy manufacturing, the idea was simple but powerful: a zipper opening that allows the cover to be easily removed and replaced. Extensive material testing went into every prototype to ensure durability and ease of use. Today, production is handled in China with rigorous quality control carried out in the US, ensuring each toy withstands numerous washes while maintaining its softness and safety. The result is a product that families can genuinely rely on.
Building a Community and Overcoming Challenges
Launched via Kickstarter, CuddleCity raised $15,000 without a single ad, a testament to the power of storytelling and community support. The campaign validated demand and provided the confidence to move forward, driven by early engagement and clear communication about the product’s benefits. Navigating industry challenges like tariffs has required patience, with a deliberate choice to hold prices steady for consumers. Behind the scenes, continuous testing ensures every product holds up against repeated washes and everyday handling.
The Future of Washable Plush Toys: Expanding Character Lines and Features
CuddleCity plans to release new characters, including sitting and weighted plush toys, covering a range of sizes and functionalities. Their upcoming weighted plush aims to add comfort and sensory engagement for children, especially those needing additional sensory input. Product expansion involves creating mini sizes and accessories, maintaining the philosophy of simplicity and sustainability. This feature is especially relevant during cold and flu seasons, emphasizing health and hygiene for families.
The Entrepreneurial Takeaway: Innovate with Purpose and Stay Authentic
Anna advises aspiring entrepreneurs to focus on creating solutions for genuine problems. Her experience shows that personal passion and a clear vision lead to meaningful innovation. “Design something you loved as a child,” she says. Authentic connections resonate with others, creating value and fostering loyalty. Look for opportunities to improve existing products, prioritize safety and sustainability, and leverage community support through crowdfunding or social channels.
Final Insights: Creating with Purpose
Anna’s advice for aspiring toy entrepreneurs is simple yet profound: “Think about what you truly wanted as a child, and create that. When you design with genuine passion and purpose, it resonates with people.” Her story underscores a broader lesson: innovation often emerges from personal pain points, combined with a deep understanding of your target audience. Combining thoughtful design, quality manufacturing, and authentic storytelling can turn a good idea into a meaningful brand.
Connect with Anna Zhang
If you’re interested in learning more about CuddleCity or connecting with Anna Zhang you can reach out through the following channels:
- Website: Visit CuddleCity’s official website for the latest news, game updates, and more.
- Instagram: Follow CuddleCity on Instagram for visual updates, game previews, and creative inspiration
Transcript
Jason Hsieh (00:43)
back to another episode of Toy Business Unboxed. Today we are joined by Anna, a creative force in the toy world over 10 years of experience. She’s also a co-founder of CuddleCity, a brand built on the belief that plush toys should be magical, doable, and also washable. So thank you so much for joining us on the podcast today.
Anna Zhang (01:00)
Thank you for inviting me.
Jason Hsieh (01:02)
So first of all, can you share with our audience your background and your involvement within the industry and what were you doing before you started your own toy brand?
Anna Zhang (01:11)
Yeah, of course. I came to America when I was 22. I went to Savannah for a master degree in industrial design. So my background is industrial design. During my study time in school, I really found my passion about toy design. And luckily, I was able to enter this industrial and working for a company who is specialized
for plush toys for all the wholesale and retail market. And I worked for them about eight years. it’s a great opportunity for me to learn everything about plush toys from, you know, the very beginning, from production to shipping to how it ended up in consumers arms. That’s a little bit about my background. And until now, I would say it’s about 10 years.
in this industry yeah.
Jason Hsieh (02:01)
What inspired you to start your own brand then?
Anna Zhang (02:03)
Honestly, I think everything started with my own experience as a newcomer to U.S. had that giant teddy bear that got me through the lonely time, you know when I just came here, I don’t know anyone and My English was not great But when the giant teddy bear got too dirty to clean I had to say goodbye to it because it is so big it doesn’t fit in any washing machine
And even if able to wash it, I’m pretty sure it won’t come out at same. And fast forward to becoming a mom, I realized that plush toys are everywhere in kids’ life. But actually, there’s nobody talks how gross they are. They’re like magnet to the dust, allergens, bacteria.
Yeah. And there is no way to wash them properly. And if you Google how to wash a plush toy, they will all suggest to you surface wash only use a wet cloth tapping it or blah, blah, blah. That doesn’t really clean it properly. Yeah. To be honest. So I thought what if we could make stuff animals that grow with kids, but also can stay clean and don’t end it up in the landfills just in
couple months or a year or two. That’s how we started CuddleCity. A solution that we think solved parents’ problem and also gave kids a safe and cuddly option.
Jason Hsieh (03:32)
And I think that’s also something very unique with your product line. If you can also showcase some of your product for our listeners, please check out the YouTube video. If you want to see the product, we’ll visit the website, but the whole concept is really not, it kind of go beyond the regular plush toy, but it’s almost like a cover plus insert concept. If you can also explain on that.
Anna Zhang (03:53)
Yeah, yeah. So it is literally just like your pillowcase concept. You can swap out different pillowcase and you have the pillow insert that stays inside of, like you can just swap off pillow covers. So as CuddleCity, you just swap out different animal covers and then you got a brand new animal. So this is Charlie. He is a bear. And then this is…
small stache skin which has a big zipper in the back and they share our same universal insert which we call him CC.
Let me show you. So you just unzip the back zipper. Take it out like you take off a clothes from him.
Jason Hsieh (04:33)
I see they can change a different cover. that’s a very interesting idea. How long does that took you to design it
and how long does it took you from idea to actual production and like
Anna Zhang (04:44)
I think the whole idea just came out like a light bulb moment. It’s not like, I have to solve this problem, I think it’s more happens in like my previous company, they have a factory in US also. They don’t make the skin, but they ship for the jumbo size. They ship the skin to US and they’re stuffing
Jason Hsieh (05:05)
In US, yeah.
Anna Zhang (05:07)
You know, they save some shipping and they can call it made in USA as well. So when I saw them stuffing the plush toys, I think that’s kind of like a light bulb moment to me. I was like, if you could stuffing it, so it means the stuffing can stay the same. So that’s, think it just like, just like a click to me. I was like, what if.
I can just do an insert and then it’s already stuffed and just swap out all those different skins. think the reason I can think about that is because I saw them like unstuffed. You know, I saw them like loose ships and after they stuffing and they just kind of like sewing it, closing it in the back. And I was like, so if it’s a zipper, it solved problems. The idea came out really quick
but when we actually working on the prototype that was part of the challenge.
Jason Hsieh (05:58)
Yeah, Yeah, your product for sure. Your current supply chain is everything still made down in China or do you also do some of the final assembly here in US?
Anna Zhang (06:09)
We do all the production in China, but after we received our goods, we do a second quality control. Because of the zipper, there’s one thing you can tell it’s all like very fluffy material. So the one thing that we worry about is like how smooth the zipper is. And we just worried it gonna cut the fur.
Jason Hsieh (06:29)
it stuck.
Anna Zhang (06:30)
So that is one of the quality control that we’re trying to do. We just want to make sure all the zippers are like smoothly like sealed. just for this zipper, like how wide it is, what kind of zipper we are using just for the zipper, we try like 10 different kinds of zipper. yeah, because we want it like easy to like use also don’t cut fur, but also we don’t want a too wide
Jason Hsieh (06:47)
Nice.
Anna Zhang (06:55)
that you can see it is a zipper. You still can’t hide it, but still good to use.
Jason Hsieh (07:03)
I see, I see, I see. And I think in the early day of the brand, you also did a Kickstarter campaign for the product line. How did it go and what was some of the lesson you learned from running your own Kickstarter campaign?
Anna Zhang (07:15)
For Kickstarter, it’s more like very beginning, we don’t really know what is gonna happen. And I think it is a very great platform for us to start from somewhere. Like no matter it’s financially or about the feedbacks that we’re gonna have, or we have some time to really test our prototype, but also
have enough customer reviews that like what they really think about this thing. You know, sometimes we think it is an issue or that’s a problem, but maybe for most people that is not a real problem. So we just want to gather more feedbacks. Yeah. So for Kickstarter, we did and we reached our goal without even put any ads.
Jason Hsieh (08:02)
that’s kind of rare nowadays. You kind of have to run out.
Anna Zhang (08:06)
That was really, really beginning and we don’t have that much money and the ads cost a lot. So we just shared on couple platforms and you know, just sharing our stories and luckily we just reached our goal and that’s how we started and we can really keep the things moving. And I think the Kickstarter gave us the most important thing is confidence because shows us like how many people are
really realize this issue and they want something that we create it.
Jason Hsieh (08:36)
I see, I see. think right now with the Kickstarter and crowd funding platform in general is you need to put a lot of time for pre-launch before the campaign even go live. Try to like build your own audience, your own e-commerce. For your particular campaign, were you also spending time on building your own list before you launched the
Anna Zhang (08:52)
No, we were so young. really?
Jason Hsieh (08:54)
Well, okay, okay, that’s an exception.
Anna Zhang (08:58)
We definitely should do a pre-launch and spend a little bit more time. But back then we were so excited about this idea that we don’t even think enough, I would say. But if I have chance to do it again, I would definitely do a pre-launch and I hope there is more people who can see us just have a chance to really know about CuddleCity
Jason Hsieh (09:24)
Of course. What kind of reaction have you been heard back from the consumer so far with this product line and with the concept?
Anna Zhang (09:33)
There is good and bad. Like I think the bad one is good too, because it does help us to improve things that we didn’t thought about before. But also there is some really good feedbacks that really cheer us up. know, like, for example, there was one that says like, he never washed a plush toy so much, but still stays the same softness.
Jason Hsieh (09:55)
Because like
Anna Zhang (09:57)
I see. Normally, this wash day, you’re like, I don’t recognize this toy anymore. It’s like, it’s a different texture. Like, the fur doesn’t stay the same, the softness is gone. And but the dad says like, he never thought about he was like, scared to wash it in the first. And he washes so many times, I don’t know how you guys did it. But it is it really exists that something that can stay the same softness. I think that’s the best win for us.
Jason Hsieh (10:25)
Okay, that’s a really good feedback as well What are some of like the biggest challenge you face early days
Anna Zhang (10:32)
we’re still facing this challenge because that’s so for our first line, this collection’s material is, it’s like a fashion level material. So that’s how it can stay strong in multiple washes. And for our new collection that coming out that it’s still our challenge because we want something new, like not just the change to a different animal we want to give customer more options about
the texture, the feelings, another kind of softness. We’re testing out another hundred different materials right now. We have some options, but we are still looking for something even better.
Jason Hsieh (11:14)
Hmm. I see. see. and what are some of the, I guess, because you and your co-founder kind of work on the business together, right? And I think one thing is unique that you are in US and your co-founder is in China. Can you also talk about like that dynamic? How is that affecting the way you operate and how’s the relationship between you and your co-founders?
Anna Zhang (11:35)
I think everything’s great so far and because we were friends before we were we went to same school in Savannah College of Art Design. He’s studying design management and industrial design and I’m in industrial design. That’s how we met each other and that’s how we became friends. And we know each other for years. 13 years. I don’t know when I was young.
Jason Hsieh (11:57)
⁓ okay.
Anna Zhang (12:00)
I think it’s a very great foundation of our relationship that is we trust each other. And even though, you know, of course there’s going to be disagreements that I think something’s right and she thinks something’s right. But when we thought about what is the best for the kids, that’s where we met. Like, you know, solve the issues or what is the best for the company.
And I did think it were great combinations because for I’m in the US part and I could, you know, do more research about marketing and also handling all the clients in the US and she is helping on all the quality controls, productions, sourcing, all those parts in China. So it’s more like I’m as a soccer, I’m the kicker and he is the she’s the defense part.
Jason Hsieh (12:49)
Yeah. So you’re more focusing on marketing. She sounds like she’s more focusing on like operation and on the background as well. So I think that’s always an interesting dynamic when you have a, like a co-founders, even with my business, which is operated by me and my sister, I’m more in charge of like sales and you know, and then my, I see my sister is really more on the backend and helping with.
like marketing and the creative part of the business as well. So it’s always good to have someone that you can kind of bounce idea of for the business. So for your business, I also want to kind of touch a very tricky topic, which is the tariff. I think it’s also being, everyone in the toys and game industry is being affected by this topic severely, in my own business as well. How are you dealing with that right now? What are some of the changes you are trying to make in the business to pivot.
Anna Zhang (13:43)
I think for a lot of companies, the most easy reaction about tariffs is they’re gonna raise the cover it. Because at the end of the day, it’s consumer pays everything. For us, we decided to just wait a little bit to see how things really gonna settle down. We’re not raising our price yet because
We still want to give the best value to our customers. And especially we’re such a new brand. We don’t want to scare customers just because, you know, the price. So we hope the tariffs gonna come down and the whole toy industry can keep the same price, know, like just give kids or
kinds of like affordable choice, especially think everyone realized everything in US right now is inflation is like every industry costs more, even tips.
Jason Hsieh (14:39)
No!
Anna Zhang (14:39)
We don’t have 15 % choice anymore. It all started with 20%. I don’t know how you, your area doing like in New York. think 20 % is not even the best choice. It’s like the lowest.
Jason Hsieh (14:52)
I just don’t go out and eat anymore.
Anna Zhang (14:54)
Yeah, so I think I the whole thing is still in process so we don’t want to make a decision yet. So we would like to wait until you know, like we have a final readouts
Jason Hsieh (15:04)
Yeah, for sure. sure. That’s also something we are also evaluating on our side with our own toy line as well. But looking into the future, is there any more new characters or new product you are designing and working on?
Anna Zhang (15:19)
Of course. Yes. We’re gonna have more characters that released very soon in the sitting position. But we’re also gonna release our floppy position as well. And especially we are working on the weighted options for the floppy toys. I think it is very important for the weighted plush to be washable.
Because you know, those beads that it may have issues if you put it in the dryer. I think in this category that people really, I think they’re gonna love that concept if it’s the weighted plush and washable. So we’re trying to working on this direction.
Jason Hsieh (15:52)
I see. I see. see. Yeah. We also have some weighted toy ourselves. It is a tricky product because it’s so heavy to ship. The cost is a little more. This is a more when it comes to like a weighted toy versus not weighted. So that’s definitely something to kind of navigate as a business owner as well. And I think one of your like unique selling point as a entire product line is like how your product is washable compared to
Like it’s lot easier to wash compared to other product in the same industry. Why is it so important for you to make your product washable? And yeah, can you share it on that a little bit as well?
Anna Zhang (16:34)
I I think as a mom, nothing is more important to me than my kids’ health and safety. And I think the kids snuggle their toys even more when they are sick. And they drag them everywhere. I I just think if I can’t wash them, they just kinda become a germ factory.
Jason Hsieh (16:50)
Yeah.
Anna Zhang (16:56)
And our toy is the whole idea is a universal with swappable and interchangeable animal covers. Not just washable, but we want to make things So you don’t have to have like a stock 100 plush toys in your bed. They could just be animal skins that is folded nicely in your closet and can swap them when you want it.
yeah, there is another little story. So there’s a mom, she is one of friends, her son is a bit shy. And so they got a little bunny and a dragon. Okay. And in the home, he really loves to cuddle the bunny. But he started his daycare two weeks ago. Yeah. And I think the first week was tough.
I think the drop off is involved crying, dragging. But then his mom says, like, how about you not a bunny but a dragon today? So she changed the bunny to a dragon and gave it to him says, you’re gonna be as brave as a dragon. So he was hugging his dragon to the daycare. And it was the first day he was not crying. I think it also really inspired us that the kids can
Jason Hsieh (17:42)
Yeah. So…
Anna Zhang (18:04)
you know, pick what they want in different situations. And we want to also inspiring all the kids that they could be anything like it is okay, you are soft today and it’s okay, could be brave. And it’s even okay that we have our grumpy dinosaur.
It’s okay sometimes that you feel a little bit grumpy. It’s emotions that you could be yourself as long as you have your true self inside. That’s what CC presents as well.
Jason Hsieh (18:37)
I see, okay, that’s actually really deep. Yeah. How many different characters do you have right now in the
Anna Zhang (18:41)
We have six characters in stock. We have another four characters in production and we have another six characters we’ll be releasing soon.
Jason Hsieh (18:52)
wow. So part of it. I see. see. see. I Yeah. What is the typical size of the plush that you are designing?
Anna Zhang (18:53)
I have a lot coming.
Our jumbo toy is 24 inches sitting high, which is about I would say it’s probably same high as a four or five years old kid. It is pretty big and it’s very choppy because we want to be still and you can laying on it, hugging it, reading with it. It’s like a very reliable friend. And we also have this size.
14 inch yeah so it’s more like a size that you can carry anywhere
Jason Hsieh (19:26)
I’m 14, okay. ⁓
I see. So those are the main sizes you have.
Anna Zhang (19:33)
Yeah, these are the two main sizes. We have some requests as, oh, why you guys are not doing mini sizes or like a keychain. We are still talking about the smaller size options. But it probably will be more focused on swapping out the animal ideas instead of washable, because since it’s so small, it’s more like we’re probably going to do multi-pack.
Jason Hsieh (19:35)
I see. Got it. Got it. Got it.
Anna Zhang (19:59)
Maybe in the future, that’s something we are thinking about as well.
Jason Hsieh (20:04)
For your product, because the concept is quite unique, have you looked into applying for any kind of patent for the other lines so far?
Anna Zhang (20:13)
we applied patent in both China and United. And the United patent is in process right now. We’re still waiting for the final document.
Jason Hsieh (20:22)
Is that a design patent or utility patent
Anna Zhang (20:25)
It’s a utility patent
Jason Hsieh (20:26)
wow. Okay, okay. That takes much longer.
Anna Zhang (20:28)
Yeah, that’s where we’re still in process.
Jason Hsieh (20:31)
I see, see. Got it. So thank you again for being on our show today. So if you have to share just one piece of advice with someone that’s getting started within the toys and game industry, what would that be?
Anna Zhang (20:43)
Because I’m more like, I’m not a typical sales person. I’m not going to tell everyone to design something they’re gonna sell. I think, think about what you really want for your childhood.
Jason Hsieh (20:54)
Okay
Anna Zhang (20:55)
That if you can, I’m pretty sure if you can like create something for your little childhood time that you really liked, I think you will make connections with other people as well.
Jason Hsieh (21:07)
I see. Yeah. you for sharing that. and where can people find more about you and your company online?
Anna Zhang (21:13)
So far we just have our website as cuddlecitytoy.com. We also have our Instagram as cuddlecityusa and you can find our official account and can shoot us any message like what animals you like in the future would you like to see or if you have any questions or problems that you want to know more about Cuddle City. Just shoot us a message.
Jason Hsieh (21:38)
Got it. Yeah. Thank you again for being on our show experiences. within the industry, we really appreciate your time. And thank you for our listener for tuning in to this episode of Toy Business Unboxed Podcast. We hope you have enjoyed today’s conversation and find it insightful and inspiring. If you like what you have heard, be sure to subscribe to our podcast on your favorite platform.
so you never miss an episode. We really appreciate your support would love it if you can leave us a review and share the podcast with your friend and colleague. For more resource tips and the latest update within the toys and game industry, visit our website at toy-launch.com. Join the conversation and connect with us on social media using #toybusinessunboxed. We would love to hear your feedback and suggestion for future episode. Until next time, keep innovating, keep creating.
keep bringing joys to toys. This is Jason Hsieh signing off on the Toy Business Unboxed podcast. We’ll see you in the next episode. Thank you so much, everyone.