Photo by Andrei Popescu on unsplash
August 2, 2024
Will POP MART Be at the Top of the Art Gallery-Style Retail Format?
POP MART, a Chinese toy company selling collectible designer toys, has opened its first-ever physical store location in the Louvre. This milestone move has made its mark in retail history.
According to the press release, the POP MART store is “strategically located in the Carrousel du Louvre, near the museum’s secondary entrance and the glass pyramid.”
The retail space has been designed to provide a mix of classical and contemporary art, and it hosted an opening ceremony for the POP MART CEO. Following recent expansions in London, Milan, and Amsterdam, this new store represents a key part of POP MART’s strategy to broaden its reach and engage European consumers while providing a new and unique retail experience.
In addition to exclusive toys, the store will have “a striking marble table and unique product displays, including exclusive Louvre items,” to “enhance the cultural experience of visiting this iconic location.”
“Opening our store at the Louvre is a significant milestone, enhancing POP MART’s global stature and credibility. Recognition from the Louvre supports our European expansion.”
Wang Ning, POP MART CEO, via PR Newswire
According to the South China Morning Post, the company’s Paqu platform and Tmall shopping site saw significant growth, with sales rising from under 10% of revenue in 2017 to one-third of its overall revenue by 2019. Per the outlet, “On the Singles’ Day shopping festival in 2019, POP MART topped sales in the action and toy figures category on AliExpress, a cross-border e-commerce platform based in China. Sales on Tmall alone generated US$22 million, exceeding that of international toy brands such as Disney and Lego.”
Toys are no longer just a kid’s pastime. In the first four months of 2024, adults ages 18 and older outpaced preschoolers in toy sales, reflecting a growing trend driven by nostalgia. This shift, tracked by Circana, shows that 43% of adults bought toys for personal enjoyment, socialization, or collecting. The pandemic fueled this trend as people, with extra time and money, revisited toys from their youth. Collecting, especially items like action figures, LEGO sets, and trading cards, surged during this period.
A survey found that 59% of Gen Zers and millennials identify as “kidults,” who enjoy nostalgic media and toys. Many retain childhood toys, with 84% holding onto them for an average of 16 years. Platforms like eBay and companies like LEGO and Funko support this trend by offering products for adults. The demographic for this resurgence is predominantly male and includes a mix of nostalgic collectibles and franchise-themed items from the ’80s and ’90s.
According to Statista, the global toys and games market is expected to generate revenue of $129.5 billion in 2024 and “experience an annual growth rate of 2.49% (CAGR 2024-2028),” reflecting a strong industry outlook. Despite this, Toys”R”Us, once a dominant player, declared bankruptcy in 2017 and struggled to compete with retailers like Amazon, Walmart, and Target due to aggressive discounting. The company has since reopened branded sections in Macy’s and attempted other strategies, like pop-up stores and a traveling sweepstakes, but its future remains uncertain.
Toys”R”Us’s failure highlights shifts in the toy industry, which now includes a diverse range of segments, such as high-end action figures, art toys, and vintage collectibles. Adults now contribute significantly to toy sales, favoring nostalgic and collectible items. Stores like The Toy Department, which specializes in vintage and indie toys, and experiential retailers like Camp, which offer interactive experiences, are examples of how the industry is evolving to meet changing consumer preferences.
Discussion Questions
How does incorporating high-end and nostalgic toys into prestigious locations like the Louvre impact perceptions of luxury and exclusivity in the toy market?
How might the trend of “kidults” and their interest in nostalgic toys transform retail strategies, including store design and product selection?
What can the decline of Toys”R”Us teach us about navigating the evolving toy market, especially in balancing online and physical retail experiences?
Poll
Loading …BrainTrust
Neil Saunders
Managing Director, GlobalData
Melissa Minkow
Director, Retail Strategy, CI&T
David Biernbaum
Founder & President, David Biernbaum & Associates LLC
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Pop Mart is a sensation. Wherever it opens new stores it is greeted with long lines of fans eager to get inside. Obviously, collecting the character toys is the main pull, but the gamified nature of purchasing – the exact character remains a mystery until the box is opened – also makes it a fun and engaging experience. Opening a store inside the Louvre in Paris is a coup in the sense it shows the cultural power of Pop Mart. Of course, there is always a risk that fads fade – but Pop Mart has been going strong since 2010, so it has shown it has some staying power.
This is an interesting choice and shows how modern and historic can meld nicely if it ends up being successful.
POP MART isn’t new. It has been gaining momentum since it first emerged, I believe, fourteen or so, years ago.
The gaming feature and the lure of collection of characters is a winning combination, but I still wonder if it might be a passing fad, even now, after all these years. Db
One thing that hasn’t changed is the emotions that drive customers to buy toys. Back in the day, things used to be linear and just a physical store was enough to run a business, with transactions solely based on commodity exchange between customers and retailers.
Nowadays, buying experience is extremely important in today’s world. Retailers need to connect emotionally with their customers to sell their merchandise. Placing high-end and nostalgic toys in prestigious locations like the Louvre elevates their status, making them seem more like luxury collectibles than regular toys.
This taps into the “kidult” trend, showing that toys aren’t just for kids anymore and retailers need to adapt by creating stores that appeal to adult collectors as well by offering unique and nostalgic items.