Implementing Strategy and Change: POP MART

Implementing Strategy and Change: POP MART

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Introduction

The consumer perception of blind box culture has grown in recent years. Blind boxes have recently become a global phenomenon (Yu, 2019). POP MART is a renowned Chinese designer, manufacturer, and distributor of designer toys and lifestyle goods. It is famous for its blind box toys and collectible figurines in sealed boxes that reveal the character within. The “blind box economy” is about surprise, satisfaction, and selling. Wang Ning started POP MART in 2010 as a renowned pop culture and art toy company. Due to its quick growth and admiration globally, POP MART has millions of fans and has entered over 23 countries. After over ten years, POP MART has created a comprehensive fashion toy supply chain operation platform. The company aims to be the global leader in fashion culture and entertainment (Wang, 2023). The company aims to bring excitement and entertainment to its target customers. Blind boxes are an emerging phenomenon, and China’s blind box market is growing rapidly, with substantial growth prospects.

The following paper analyzes POPMART’s current strategic position, the contemporary environment of the company, including people, purpose, and planet, and recommendations for strategic change within the company.

Part One – The Current Strategic Position

The current internal position of the POP MART toy firm can be assessed by studying numerous elements within the corporation. First, POP MART has a well-defined hierarchy in which different departments are responsible for design, production, marketing, and sales tasks. This methodical structure promotes effective collaboration by facilitating open lines of communication among all team members (POP MART, 2021). In addition, extensive training programs and recruitment tactics geared at attracting qualified individuals with a genuine interest in the toy industry show that the company prioritizes staff development and talent acquisition.

POP MART encourages its staff to think outside the box by putting them on cross-functional projects to freely share and build upon their ideas for the company’s wide selection of collectible toys (Wu, 2023). In addition, internal processes are routinely checked to ensure that high quality is maintained throughout the manufacturing process and that deadlines for product releases are met. POP MART is currently recognized as a trusted retailer because of the company’s unwavering commitment to producing high-quality goods (Sun et al., 2023). Lastly, good management methods centered around strategic planning allow the company’s leadership team to make learned decisions based on market trends and consumer preferences while assuring sustainable growth in an increasingly competitive industry.

POP MART is expected to be affected by several external factors, including the rising standard of living in many parts of the world, especially in developing nations. Consumers’ willingness to spend on luxury goods like designer toys could expand due to rising per capita disposable income (Wang, 2022). The pop culture industry’s growth is another external factor contributing to the shift, as it attracts a broader demographic. Changing consumer tastes and regulatory demands directly result from rising global warming and environmental concerns. So, POP MART may have to start using greener manufacturing methods and delivering its goods. Demand for POP MART’s wares is sensitive to demographic shifts such as population size, age structure, and degree of urbanization (Tong, 2020). The business must know the shifts to adjust its product lines properly. Developing new technology can also alter how POP MART makes and designs its products, engages with customers, and conducts its operations.

POP MART’s competitive advantage lies in its ability to produce trendy and valuable designer toys that appeal to a wide range of consumers. Their business model centers on blind boxes, which give customers an element of surprise when purchasing (Jiang, 2021). With almost 1,300 toy vending machines modeled after Japanese gashapon kiosks, the company has welcomed rapid expansion through various distribution methods. The firm’s long-term goal is to increase the prominence of pop-culture toys and shows in China (Whiddington, 2021). They use unconventional promotion methods, such as teaming up with other creatives and commercial enterprises, to spread their message to more people.

POP MART’s innovative approach to fusing art, creativity, and commercial value has given them a commanding strategic position in the designer toys market. In a nutshell, this is the company’s strategic stance (Luo, 2021). Toys R Us is well-known for its “Mystery Box” toy sales strategy, in which customers buy boxes without knowing the specific toys they will receive. This element of surprise and gaming could provide the company with a competitive edge. POP MART has worked with over a hundred artists, creating thousands of unique products (Cai, 2020). To broaden their appeal, they also experiment with new forms of expression. POP MART has expanded its international reach by opening stores in new countries and bolstering its online presence. Like many other brands with devoted customer bases, POP MART keeps in close touch with its audience and frequently incorporates customer feedback into product development. According to Harper (2020), because of POP MART’s ‘Art Toy Culture’ in China has become increasingly mainstream, helping the company reach a hip, young customer base.

For POP MART’s sense of value, although there is not a direct statement, it seems that the values could likely include fostering creativity through collaborations with various artists and designers, ensuring high-quality, sought-after collectibles, encouraging innovation, cultivating community and belonging through its store experience and engagement with customers. POP MART’s Vice President, Justin Moon, has been at the helm regarding international growth (Hallanan, 2021). The company’s emphasis on globalization has been a significant strategic move because of rising demand in outside markets.

POP MART has carefully utilized market methods to make themselves distinct by targeting Generation Z, who have a larger fondness for fashionable and distinctive toys (Ma, 2022). One key differentiation for them has been the Mystery Box model, in which buyers are randomly sent a toy. The company has also considered its surroundings’ technological and sociological elements and adapted accordingly. They have devised clever strategies for marketing and selling their toys that keep their target demographic interested both online and in-store (Jin et al., 2022). The company’s value indicates that stakeholders, especially investors, will accept its approach, as it is higher than that of Lego and Hasbro. Their work with multiple artists may indicate their approach is well-liked by potential business allies. Kotler and Armstrong (2017) state that even if the current strategy is appropriate and effective, it may need to be revised to account for changes in the external environment, such as a shift in client preferences or the emergence of new competitive threats.

Part Two – The Contemporary Environment

The People

POP MART is a global leader in designer toys and lifestyle goods, which can be attributed to its original business model and cutting-edge advertising campaign. POPMART has established itself as the undisputed industry leader in designer toys and lifestyle products. They have been able to achieve success in this highly competitive due to the unique qualities of their products (Fan, 2021).

The culture of modern POPMART is built on innovative problem-solving approaches, and its employees’ passion reflects this. They collaborate with designers worldwide to develop innovative concepts that have never been seen before (Zhang, 2021). POPMART is famous for its line of mystery boxes, which contain a variety of toy designs concealed under opaque packaging. The workforce at Pop Mart exhibits diverse backgrounds, hence fostering a heterogeneous blend of viewpoints crucial in facilitating creativity and innovation within their toy creation processes. These boxes were made possible by the company’s dedication to innovation.

POPMART has built its entire company around the principle of putting the requirements of its clients first. They are dedicated to providing consistent value and happiness to customers, and they prioritize the customers’ individuality, creativity, and artistic tastes. They prioritize consumer interaction, frequently turning to interactive strategies such as blind boxes to inject an air of mystique and excitement into the products and services they provide (Mengdi, 2020). Additionally, POPMART has a strong commitment to working with others. They maintain their extensive assortment of products that are distinctively created and of high quality by working with designers worldwide (Zhang, 2022). This cooperation