The strategy allows the group to be more nimble and adapt to the demographic shift, as toys and collectibles are no longer bought only by children but increasingly by adults who have formed attachments to brands and beloved characters over the years.
“We have been leaning into a model that we call a light-asset model,” Tsoi said. “So the return on investment is a lot faster and [the investment model] a lot more agile than before.”
Tsoi said a store could be as compact as 150 square metres (1,615 sq ft) with investment well below US$100,000, just a fraction of the previous typical store size of 10,000 sq ft with initial outlay of as much as US$500,000.
“The reason why we’re able to open the small stores is that we evolved our brand from kids to the so-called ‘kidults’,” he said.
