2023The overall consumption trend in the year has become more rational, with many consumers placing greater emphasis on practicality when purchasing goods. Against this backdrop, PopMart has still maintained good performance. What are the reasons for this? Under the backdrop of rational consumption, how has PopMart successfully 'attracted' consumers? What are the differences between collectible model and trend gaming players? What is the emotional value that Popomart's own products provide to users? Popomart, whichIP addressWhat are the development challenges of offline parks centered around this core experience? What are the key factors for sustainable development?
Frost & SullivanFrost & SullivanZhu Yiming, Executive Director of Frost & Sullivan Greater China Region (hereinafter referred to as 'Frost & Sullivan'), answered Business School Magazine Interview, jointly discussing the development of the trend game industry.
Business School Magazine
Q
The latest data from Popomart shows that the revenue of Douyin's flagship store has increased by more than800%The revenue of Popomart lottery machines has declined again. However, from the semi-annual report, WeChat mini-programs accounted for45.6%, while Douyin, Tmall, and other e-commerce platforms accounted for13.4%,19%,22%Will Douyin become the second growth curve for Popomart online? Why?
Although Popomart is very popular on Douyin with rapid growth, the reason lies in the fact that online sales gradually became one of its main distribution channels during and after the pandemic. Therefore, Popomart is bound to make more attempts in its online layout, including the Douyin platform, as much as possible. Popomart is located at2021In the second half of the year, we started creating our own live-streaming e-commerce accounts on Douyin for live broadcasts. Additionally, due to the repeated lockdown policies during some international toy exhibitions, which were later converted into online events and launched through live broadcasts, there was a discernible surge in the revenue of our Douyin flagship store. This has led consumers to gradually get used to participating in various trendy toy activities online. Moreover, Bubble Mart's Douyin account has a clear logic; the official authorized account has built multiple self-operated live streaming rooms, precisely aligning with the fans of different communities to create differentiated operational advantages and output content. However, under the backdrop of economic downturn and the gradual fading of demographic dividends, the online incremental market has become a stock market, and growth rates will inevitably tend to flatten. In the medium to long term, Douyin will not become Bubble Mart's second growth curve on the online platform.
The future growth trend of Popomart mainly lies in 'cross-border outbound business', which is high-quality and diverse.IP addressResources have established a first-mover advantage for Popomart's international business.2022After making strategic investments in this area last year, its explosive revenue growth has also been providing continuous impetus for the expansion of its overseas markets. As of2023In the second quarter of 2021, its overseas stores reached55The revenue growth rate of the Home segment has always remained as high as130%Moreover, it is expected that there will be significant incremental space in the United States and Southeast Asia.
Q
2023The overall consumption trend in the year has become more rational, with many consumers placing more emphasis on practicality when purchasing goods. Against this backdrop, PopMart has still maintained good performance. What are the reasons for this? In the context of rational consumption, how has PopMart successfully 'attracted' consumers?
It has to be admitted that the overall consumption situation is becoming more rational and practical. Popomart in2023The performance in the first half of the year was able to maintain growth, which is inseparable from itsIP addressStrong brand momentum.
Bubble Mart is about pop cultureIP addressAs a trend culture enterprise centered around, its target customer group's age ranges between15till40The 'Y' generation refers to a young group that has received a good education. They have experienced the rapid development of China20In [year], they came into contact with a vast amount of information about diverse cultures and modern lifestyles. They have a strong desire for self-expression and individuality and are willing to pay for emotional fulfillment. According to our previous consumer research data, this group also has a strong preference forIP addressThe related peripheral products exhibit extremely high loyalty and price acceptance, with a high repeat purchase rate. They are also keen on sharing through the internet as a medium. Therefore, in the context of declining consumption, single items with a wide range of unit prices, including both expensive and inexpensive small items, that can bring certain emotional satisfaction, have maintained a certain level of consumer resilience.
In addition, from an industry perspective, the Chinese collectible toy market is still in its early stages and has not yet entered a steady development phase like countries such as Japan and South Korea. With the development of China's pan-entertainment market and significantIP addressThe continuous increase in quantity, the output of high-quality content, and an more open attitude towards niche trend culture will promote the rapid development of China's overall trend culture industry. As a leading company in the industry, Popomart can also enjoy the dividends brought about by the initial incremental customer base.
Q
What are the differences between hand-drawn model fans and trend-following gamers? What is the emotional value that Popomart's own products provide to users?
TikTok culture includes physical goods such as collectibles that have certain value for collection and appreciation, along with emotional attachment. Some traditional collectible enthusiasts may need to manually polish, assemble, and color these items to complete them, which is somewhat different from the popular TikTok culture that has emerged in recent years, as it involves a broader public perception.
Popomart's products incorporate trendy cultural content into various toys or daily items, endowing them with fashionable design and aesthetic value. The joy and companionship they bring can provide comfort and solace to the multicultural audience. Moreover, the surprise brought about by Popomart's 'blind box economy' is another important factor stimulating consumer purchases. Additionally, due to the wide range of unit prices for trendy toys, some fans can express their unique lifestyle and social status by purchasing different trendy toys, bringing about a sense of belonging and social topics within certain circles.
Q
2023year9Month by month, PopMart Paradise officially opened. The first wave of users was still mainly fans of PopMart. How do you view PopMart's attempt to 'reinforce' its presence? Although PopMart Paradise has performed quite well in terms of operational data, there are also online controversies such as low cost-effectiveness, limited entertainment content, limited peripheral sales, and rampant scalping. How do you view these consumer controversies?
The core of trend culture is to establish emotional connections and value recognition with consumers. The move by Popomart Urban Paradise to set up stores can be seen as a significant leap from trend toy sales to trend culture dissemination, an essential market education that is necessary as it gradually moves from niche markets to mainstream ones.
The asset-heavy park operation of Popcorn Land can actually be seen as a scenario-based 'light' amusement park. It does not have as many large-scale mechanical projects as Disney or Universal Studios, which is one of the criticisms it has faced. However, as mentioned earlier, the main focus of the park is to create an immersive experience for consumers, deepening emotional connections and eliciting emotional resonance. The subsequent development direction is also to build a relatively complete layout of trendy play formats and endow them withIP addressEnhance with richer visual elementsIP addressThe dynamic vitality includes interactive games, immersive performances, parent-child activities, etc., so we reserve our opinions on some of the controversies surrounding its online presence. The implementation of the park is still centered aroundIP addressBy conducting systematic operations and development, the brand's diffusion ability and the incremental market brought by tourists help further unleash its potential.
Q
Popomart, whichIP addressWhat are the development challenges of offline parks centered around this core experience? What are the key factors for sustainable development?
The main difficulty in building offline theme parks lies in securing sufficient capital flow for operation and maintenance. However, compared to mature theme parks, Bubble Mart's first park has a more experimental nature and lower investment costs.
Its primary goal is to take over theIP addressThe business format has been established, gradually creating carriers that can connect with fans based on content. Once the fans' imagination space and park experience are satisfied, the theme park can achieve sustainable development. The characteristic of Popomart is its richIP addressMatrix and top-level trend content, with continuous exploration capabilities and hit productsIP addressRefined operation helps extend the lifecycle of the park in the early stages of implementation and achieve a virtuous cycle in park operations.
* This interview was published in "The Business School》 Magazine Reporters: Wang Yadi, Shi Dan. Original title: In the era of rational consumption, can't people still do without Popomart?
