Cutesy toys need to imprint on humans to be effective

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

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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 Retail Asia.

"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 exclusive interview.

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