The Toy Guide catches up with Funko CEO Cynthia Williams for a dialog concerning the firm’s evolution, massive wins, rising developments, and the outlook for the long run.
The Toy Guide: When first spoke final 12 months, you had been enthusiastic about tapping into the Funko workforce’s ardour to please followers in new methods. How did that method assist form the enterprise?
Cynthia Williams: It’s true — Funko thrives on ardour for creating communities by means of fandoms, however over the previous 12 months, we’ve sharpened our ardour to concentrate on methods we will really scale the enterprise with intentionality. We’re utilizing data-driven insights to information our enlargement into new fandoms, with sports activities main the cost. By forging deeper partnerships on this house and leveraging the keenness of die-hard collectors and informal followers, we’re unlocking recent alternatives whereas staying true to our core group. Our method isn’t nearly broadening our attain — it’s about assembly followers the place they’re, in shops, on-line, and at reside occasions, making certain we create long-term, sustainable development. Meaning refining our licensing technique, innovating inside product classes, and strengthening our commercialization method for international scalability.
TB: At New York Comedian Con final fall, we mentioned connecting with followers at reside occasions and the way we’ve entered a comparatively new period through which an organization’s management turns into a visual face for a model. In some ways, Funko pioneered that. How do you handle the day-to-day enterprise whereas making time to attach immediately with the followers?
CW: Participating with our fan group is integral to our DNA, however so is making certain Funko’s continued development. Balancing each requires prioritization and constructing a powerful management workforce that additionally feels comfy participating with followers at occasions. Whereas I stay seen at key occasions like Comedian-Con and work together on social media, my principal focus is making certain that we’re creating a company that feels a way of possession in any respect ranges in making strategic, forward-thinking choices that propel Funko’s enlargement. Everybody is anticipated to concentrate on the fan and create merchandise and experiences that delight them to drive development. That features development in fandoms like sports activities, gaming, music, and packages like Pop! Your self. The fervour of our core followers stays on the coronary heart of what we do, and that should come by means of in the whole lot we do, not simply fan engagement occasions. I actually imagine within the significance of empowering our groups and staying clear on our long-term imaginative and prescient as a result of solely then can we meaningfully scale Funko, which is able to maintain delighting our followers for years to return.
TB: Talking of refining the licensing technique, what developments have emerged which can be compelling for Funko?
CW: Client habits are shifting — followers spend much less time watching conventional media and extra time gaming with their mates, streaming music, and interesting with reside leisure. The numbers are compelling: greater than 3 billion international players, 100 million folks attending Stay Nation live shows simply final 12 months, and a $35 billion sports activities memorabilia market. On prime of that, the kidult market — a $7.6 billion alternative — is rising quickly, and Funko is main the way in which. These developments point out clear alternatives to broaden our licensing footprint in gaming, music, and sports activities whereas reinforcing our management in nostalgia-driven collectibles. And I’m not simply speaking about Funko Pops! This strategic alternative encompasses all of the methods followers present the world who they’re by what they show, put on, or carry.
TB: Micro collectibles stay sizzling, and Bitty Pop is not any exception. How will Funko lengthen the model?
CW: Bitty Pop has been successful to this point, introducing Funko to new collectors and increasing our demographic attain. We’re taking that momentum and evolving the model with new methods to interact. Introducing highway and atmosphere packs and Bitty Packing containers permits followers to work together with their collections in recent, dynamic ways in which mirror what issues most to them. A few of these figures are at the moment unavailable in normal Pop! sizes, making Bitty Pop an much more thrilling proposition. These improvements align with our broader technique of increasing our viewers whereas reinforcing the collectability of our merchandise in all sizes and shapes.
TB: How has your retail combine developed over the previous 12 months, and the way can retailers finest interact with you?
CW: We’re targeted on assembly followers the place they’re — whether or not that’s in conventional retail, on-line, or at reside occasions. We’ve formidable plans to enhance the in-store procuring expertise with our wholesale companions, equivalent to branded areas or licensed retail areas whereas increasing our presence in non-traditional areas like music festivals, sporting occasions, and fan conventions. Whereas mass retail stays a precedence, our direct-to-consumer (DTC) enterprise has grown to signify 25% of our whole gross sales, providing distinctive merchandise and unique activations like Pop! Your self customization kits. Moreover, we’re increasing our Loungefly and Mondo traces to introduce new kind elements and product silhouettes to assist us attain new followers and retail companions.
TB: What are the largest challenges and alternatives dealing with the general business proper now, and the way is Funko approaching them?
CW: The most important problem is navigating financial uncertainty whereas nonetheless delivering innovation that excites customers. With shifting client spending habits, worth notion is vital — we have to guarantee our merchandise proceed to resonate on the proper value factors and can be found the place followers store. On the identical time, this problem presents a possibility: by specializing in high-growth classes like sports activities and gaming, we will create significant connections with new audiences whereas deepening engagement with our current fan base. Strategic licensing, considerate product improvement, and new thrilling retail partnerships might be central to this 12 months’s method.
TB: Many initially thought that final 12 months can be the 12 months the toy business normalized after a number of chaotic years, however the outcomes had been blended. What are your general predictions for the toy business and the state of toys and collectibles at retail this 12 months?
CW: The business stays in flux, however we see sturdy development potential in focused areas. Kidult collectibles proceed to thrive, particularly when tied to main leisure and sports activities occasions. Retailers have to be extra strategic with stock, aligning merchandise with cultural moments and fan demand. We count on the business to proceed evolving towards a hybrid mannequin — balancing mass-market accessibility with specialty-driven exclusivity — to maintain followers engaged and excited.
TB: As you method the one-year mark with Funko, what are the largest learnings so far?
CW: Each new function presents its personal studying curve, however what’s stood out most to me is the sheer ardour throughout the Funkoverse — not simply amongst followers, however amongst our workers. I’ve labored with many enthusiastic client communities, however seeing that very same degree of dedication and concentrate on spurring pleasure is inspiring. Simply this previous January, our workforce initiated a fundraiser for Southern California wildfire aid, quickly shifting from thought, which truly stemmed from a suggestion by certainly one of our Hollywood retail workers, to execution in days. My function, my accountability, is to harness that power and scale it with function. Meaning leveraging knowledge to drive higher decision-making, optimizing our commercialization methods, and evolving our direct-to-consumer operations to assist long-term development. With a workforce that’s open to recent views and wanting to attempt new approaches, I’m assured we will proceed innovating on how finest to shock and delight our followers in the whole lot we do.
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A model of this characteristic was initially revealed within the 2025 version of The BIG Toy Guide. Click here to learn the total challenge! Need to obtain The Toy Guide in print? Click here for subscription choices
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