这一转变的背后是Build-A-Bear市场定位转变，将目光从儿童转向更有消费潜力的成年人市场。Build-A-Bear发现成年人不仅拥有稳定的收入，而且对于个性化和收藏级别的玩具有着更高的支付意愿。Behind the surge in stock prices is Build-A-Bear's shift in market positioning, turning its focus from children to the more consumer-potential adult market. Currently, about 40% of the company's customers are teenagers and adults, and this increase directly drives the company's performance growth.
Targeting the adult market, a toy company in the USA has seen its stock price soar 14 times in the past five years, known as the 'American version'.$POP MART (09992.HK)$.
Mainly engaged in DIY teddy bears and other stuffed animals.$Build-A-Bear Workshop (BBW.US)$, the stock price has skyrocketed by an astonishing 1388% in the past five years, with a remarkable 95% increase this year, marking the most aggressive period of growth in the company's history.
Behind this transformation is the change in market positioning for build-a-bear, shifting focus from children to the more consumer potential adult market. Build-A-Bear found that adults not only have stable income, but also have a higher willingness to pay for personalized and collectible toys.
Currently, around 40% of the company's customers are teenagers and adults, with this ratio increase directly driving the company's performance growth, leading Build-A-Bear to successfully transform from a loss-making state from 2019 to 2021, with profits now exceeding $40 million a year.
It is worth mentioning that Build-A-Bear company has increased profits without significantly expanding physical stores, currently owning 433 stores, below the peak of 470 stores in 2017.
The diversification of product line is also one of the key factors for Build-A-Bear's success. In addition to the classic DIY teddy bears, the company has also launched more high-end collectibles, such as a bear covered in Swarovski crystals, priced as high as $2000, attracting not only collectors' attention but also bringing lucrative profits to the company.
However, the road to the turnaround of build-a-bear workshop is not without challenges. This year, the company's 'Skoosherz' series products faced lawsuits for alleged design infringement of Squishmallows. At the same time, build-a-bear workshop also faced a class-action lawsuit for providing false discount prices.
In addition, signs of slowing sales in the adult market and potential tariff threats have recently impacted the stock price of Build-A-Bear.
During the latest financial report conference call on Thursday, build-a-bear workshop management noted a slowdown in online sales, with the main online customer base being adults and teenagers, while physical store sales are more targeted towards children. It also manufactures most of its products overseas, so with Trump's re-election, tariff concerns are also looming over the company.
On Friday, $Build-A-Bear Workshop (BBW.US)$ Stock price fell sharply by 11%.
Editor/Rocky
