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.