FEATURE: Cracking open the blind-box retail magic

MINISO and Pop Mart have earmarked North America as their next expansion market, with hundreds of new store openings planned there over the next five years. Kidscreen looks at their roadmap in our Q4 2024 issue.
October 22, 2024

Blind boxes, surprise eggs and trading card booster packs all share a common play pattern of creating suspense and excitement when consumers break open the packaging to reveal a hidden collectible inside. Sometimes they’re left with just another duplicate to trade away, but there’s always the chance of snagging the rarest one in the set.

Last year, this thrill of the chase helped the global blind-box category generate US$13.5 billion in revenue, a figure that’s projected to grow 5.5% year over year until it reaches US$31 billion by 2031, according to market research firm Dataintelo. Key players in this space include China-based retailers MINISO and Pop Mart, who are both laying the foundation for more growth with North American expansion strategies.

MINISO opened its first US location (Pasadena, California) in 2017, and has since expanded its stateside operations to encompass 191 storefronts as of March. By comparison, the retailer owns and operates more than 6,600 stores globally, 4,024 of which are located in mainland China.

Despite its smaller-scale presence in the US, MINISO views this market as a major growth opportunity and is opening upwards of 20 new stores there each quarter, says CMO Robin Liu. In its Q1 2024 financial results, MINISO reported a 108% increase in gross volume sales for its North American division compared to last year, proving to Liu that the company’s strategy of opening high-profile flagship stores in New York, New Jersey and LA is resonating with consumers.

“Our retail concept has been evolving since we launched our first store in China in 2013, and we have continuously adapted to meet the needs of our core consumers, especially Gen Z,” says Liu. “By aligning our offerings with the passions and interests of our consumers, we’ve built a shopping environment that feels personal, engaging and uniquely inviting to the young, vibrant audience we serve.”

A key driver for MINISO’s business is its licensed product inventory, adds Liu. Since signing its very first licensing deal with Sanrio for Hello Kitty in 2016, the retailer has manufactured toys with nearly 100 licensors, including Mattel, Disney, WildBrain and Hasbro. And while blind-box figures are still the main course on its menu, MINISO has also branched out into making licensed lifestyle items ranging from blankets and water bottles, to plush and candy.

“[MINISO’s] global design centers in China, the US, Japan and South Korea—supported by more than 1,400 high-quality suppliers— empower us to quickly respond to market trends and customer feedback,” says Liu. “As a result, we launch approximately 100 new products every seven days from a vast library of 10,000 product ideas, ensuring that our line remains dynamic and exciting.”

Pop Mart, on the other hand, is just beginning its American journey. Since entering the market in 2022, the company has launched 16 DTC storefronts in locations including Las Vegas, California, New Jersey and Washington. And there are 10 more openings planned between now and year-end.

With Texas in its sights as the next target state for expansion, Pop Mart opened a Frisco flagship store in August that’s part of the Dallas-Fort Worth metroplex. “The new store allows us to bring our unique retail experience to Texas and create a space where fans can discover new and exciting collectibles, connect with like-minded individuals, and unleash their inner creativity,” says Larry Lu, Pop Mart’s head of North America.

“With [two more] Houston locations in the pipeline, we are eager to continue growing our Texas presence and engage with our loyal fans and collectors across the country.”

But physical storefronts are just one piece of this retail puzzle. As of September, Pop Mart was operating 450 stores globally; however, this pales in comparison to the 2,300 Robo Shop vending machines that make up the core of its business.

Both storefronts and vending machines carry the latest blind boxes designed and manufactured internally by Pop Mart—containing licensed collections for brands like Harry Potter, Batman, Beetlejuice and SpongeBob SquarePants, as well as the company’s own portfolio of original characters.

Old IP meets new customers 

One licensor doing business with both Pop Mart and MINISO is LA-based Cloudco Entertainment, whose game plan is to leverage these creative and vibrant stores to reintroduce classic brands like Care Bears to a youthful audience, notes head of global licensing Robert Prinzo.

“The strategic partnerships with MINISO and Pop Mart were driven by their unique positions in the market as trendsetters in retail innovation, and by their extensive global footprints,” says Prinzo. “These collaborations not only broaden the exposure of Care Bears globally, they also align perfectly with our goal of embedding the brand into the lifestyle segment.”

This year alone, Cloudco has added more than 250 Care Bears SKUs to the MINISO line, as well as setting up dedicated in-store display areas to immerse consumers in the shopping experience.

At the same time, Prinzo is chasing after the growing kidult consumer base at Pop Mart with limited- edition blind-box series and crossover figure collections that also feature the retailer’s original Space Molly character (which generated US$141.1 million in global revenue last year).

Toy manufacturers that have a dedicated retail footprint provide a wide range of quick-to-market strategies for new products and offer a streamlined communication pipeline, notes Prinzo.

“By partnering directly [with MINISO and Pop Mart], we’re right at the source of the latest trends and strategic moves,” he says.”This gives us a direct line into what consumers are currently excited about, which helps us tailor our offerings to match the market’s pulse. Plus, getting a clear view of the retailers’ specific strategies for positioning our products means we can develop items that not only fit perfectly within their stores, but also stand out to consumers.”

As Cloudco continues its partnerships with blind-box retailers, Prinzo wants to ramp up production and create more product lines to extend the reach of the Care Bears brand. The company is also making moves to develop retail exclusives for the Bears next year with retailers including H&M, Plaza Japan, C&A and Riachuelo.

“We’re thrilled about the potential for deeper integration with these retail powerhouses,” says Prinzo. “We see a world of possibilities for new product innovations and dynamic cross-promotional opportunities that will take the Care Bears brand to even greater heights around the globe.”

This story was originally published in Kidscreen‘s Q4 magazine issue. 

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