Specialist
Former Commodity Manager at Miniso Group Holding Ltd
Agenda
- China’s designer toy market – development dynamics, consumption demand, market size, growth trends, plus competitive advantages and disadvantages comparison of blind box and other types of designer toys
- Miniso’s (NYSE: MNSO) Top Toy vs Pop Mart (HKG: 9992) – designer toy ecosystem development, product strategy and planning, gross margin, team scale and background
- Top Toy vs Pop Mart – supply chain system, factories’ production, procurement channels, supplier selection, plus planning of production and inventory
- Top Toy vs Pop Mart – revenue performance, sales, development trends, plus impacts of the regional pandemic on sales and supply chain
Questions
1.
China’s designer toy market maintained a growth rate of over 10% in 2015-20, with its size being around RMB 23bn in 2020. How accurate is the data? Is it an optimistic or conservative estimate?
2.
What was China’s designer toy market size in 2021? Did its growth accelerate or decelerate?
3.
Apart from the coronavirus pandemic, are there other factors that promote the growth of the designer toy market?
4.
You said that the coronavirus outbreak in 2019 stimulated the industry’s growth. Will the repeatedly resurgent pandemic provoke its growth again in 2022?
5.
The 2021 financial report that Pop Mart just announced suggested that its revenue and profits grew rapidly. What did its good performance primarily benefit from? Its growth rate was way above the industry’s average level. How long will its growth last?
6.
Molly’s revenue has fallen while the revenue of some new IPs of Pop Mart are increasing. Against this backdrop, what is Pop Mart’s strategy for IP operations and development?
7.
Molly is the only one of the IPs launched simultaneously that has survived well. What are the indicators used to assess whether an IP will be successful? Is Pop Mart capable of developing another product as successful as Molly?
8.
The semi-annual report published by Top Toy showed that it underperformed Pop Mart in growth rates and revenue. Is Top Toy capable of catching up with Pop Mart? The two differ in the way to develop the designer toy ecosystem. How do you view the difference?
9.
Top Toy can outpace Pop Mart in store scales thanks to assistance from its parent company Miniso. Can it become an important player as Pop Mart in the designer toy industry?
10.
How is the offline store planning of Pop Mart and Top Toy?
11.
Can the penetration and demand of designer toys support the related brands to open stores in lower-tier markets?
12.
Besides Pop Mart and Top Toy, other designer toy brands will attempt to go global. Are their existing products really saleable in the overseas market? What is the overall environment abroad?
13.
How much do you think the overseas market will contribute to each company’s revenue? Do they go global just to take the early-mover advantage?
14.
What is the pace for Top Toy to open stores in 2022?
15.
How have the single-store operations of Pop Mart and Top Toy been influenced by the pandemic? What about the influences on their operations and overall trend?
16.
As you said, blind boxes and designer toys are not necessary products. Will there be fewer purchasers with the economy and consumption decline?
17.
How has Pop Mart’s consumer profile changed after the pandemic? How do consumers with different incomes contribute to the revenues of Top Toy and Pop Mart?
18.
BJDs and Mega dolls contribute much to the company’s revenue. What’s Pop Mart’s planning for the products? Will it produce more dolls?
19.
It takes eight months from the planning of IP and production. Will more Mega dolls come out in 2022?
20.
What’s the revenue contribution of IP products other than the Mega series?
21.
The supply chain is under great pressure due to the pandemic. Can you elaborate on the impact brought by the pandemic and the impact on products that will be released later?
22.
Top Toy’s supply chain is not impacted by the pandemic because it only purchases from others instead of designing and developing products itself. Is that correct?
23.
What are the gross profit margins of Top Toy and Pop Mart?
24.
Will companies pay higher costs for more orders to be placed after the downtime caused by the pandemic?
25.
There were cases in which some best-sellers ran out of stock for so long and missed the timing to sell well for Pop Mart. How does Pop Mart plan for the first-time order, including the production volume, replenishment, inventory and inventory age when choosing factories to work with?
26.
Pop Mart’s inventory had increased by the end of 2021. Why is that?
27.
At present, the designer toy industry is a popular field. What is the growth potential in the industry? As the competition becomes increasingly fierce, will the competitive landscape be more concentrated or scattered?
28.
In terms of the business models and positioning of Top Toy and Pop Mart, which one is more promising in the future?
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