[Voiceover] Dangling from the backpacks, handbags and keychains of young people across China are the latest must-have accessory- tiny plushie toys and miniature cartoon figurines. Nowhere is the trend more visible than Dongguan City, widely known as China's art toy capital, where the production of charms like these is in full swing. One local toy maker said their new collection hit the market before Children's Day and sold 20,000 pieces in three days. [Soundbite] Zhang Hua, domestic sales manager, trendy toy company: "Every product, or every series has its own name and distinctive personality. Take this one for example, we call it the 'Little Chatterbox'." [Voiceover] The charms' appeal are more than just cute designs. Some toy makers are adding AI functions to their creations, which allow the toys to record their owners' hobbies and interests to recommend more targeted content. This toy maker said they've won over foreign clients with clever designs—like putting figures inside water bottles. [Soundbite] Chen Xian, general manager, trendy toy company: "A U.S. bookstore chain asked if we could make PVC charms wearable. So we found a way to encase these PVC products in bottles and it's now a hit in the American market." [Voiceover] According to a report from the Chinese Academy of Social Sciences and the China Animation Association, production of the country's trendy toy market is expected to be valued at more than 15 billion U.S. dollars by the year 2026. [Restrictions: No access Chinese mainland]