Interviews

What factors have contributed to the strong performance of the Toys and Hobby Business?

Takenaka:Over the past six years, net sales in the Toys and Hobby Business have grown by 2.1 times, while operating profit has expanded by 3.5 times, and I believe this is the result of each Group company promoting their business in accordance with our core strategies. The strong performance of the business has been driven by changes in people’s lifestyles brought about by the COVID-19 pandemic. For example, during the pandemic, the diversification of video viewing methods, such as online streaming, led to a global surge in the popularity of Japanese anime. This allowed us to expand the rollout of products targeting the mature fan base, which has been the primary driver of our strong performance. In particular, at Bandai and Bandai Spirits we pursued collaborations between business departments for our mainstay IPs and strengthened relevant promotions. Another factor contributing to our strong performance has been our efforts to constantly monitor new IPs and swiftly roll out related products. As a result, we have recorded record highs for both net sales and operating profit in the first half of FY2025.3.
For new products released under the current Mid-term Plan, ONE PIECE CARD GAME has become a hit across the globe, thereby making significant contributions to the overall performance of the Toys and Hobby Business. Also, Gundam model kits continue to perform well, benefiting from the increase in fans following the release of the animated TV series Mobile Suit Gundam THE WITCH FROM MERCURY as well as the massive success of the theatrical film Mobile Suit Gundam SEED FREEDOM. Moreover, we accelerated store openings of the GASHAPON Bandai Official Shop, around the world, through collaboration with Bandai Namco Amusement Inc., increasing the number of stores to approximately 280 over the past three years. The first GASHAPON Bandai Official Shop in Taiwan opened in September 2024 and recorded record-high first-day sales. GASHAPON capsule toys have gained international recognition as a symbol of Japanese culture, reflecting not only their high quality but also the engaging purchasing experience, where customers turn a handle to dispense the toy. Moving forward, we will continue to pursue collaboration within the Group as we aim to further expand the number of stores around the world.

Please tell us about the efforts to strengthen your production structure.

Takenaka:In addition to the Bandai Hobby Center, which is the main production base in Japan for Gundam model kits, we will expand production capacity of model kits by strengthening collaboration with Bandai Namco Craft Inc., which is located in Tochigi Prefecture. In addition, we are currently constructing a new factory at the Bandai Hobby Center to meet future demand. For the production of cards for trading card games, we have been making proactive investments geared toward bolstering the production capacity of Artpresto Co., Ltd., thereby establishing an environment where it is easy to control production within the Group. Looking ahead, we will continue to invest resources within the Group as we focus on further bolstering our production structure.

How do you view the current state of the global market, and what is your outlook going forward?

Takenaka:In the Toys and Hobby Business, we aim to reach an overseas sales ratio of 50% in the future. At the moment, we are strengthening our operations in the key regions of North America and China with a view toward reaching this goal, and we believe that we can achieve further development in these markets. In North America, card products have been performing well, and products for the mature fan base, such as collector’s figurines and Gundam model kits, are also achieving steady success. There is also growth potential for other businesses in this region.
Furthermore, Tamagotchi is garnering attention as a global fashion icon, and we believe this provides us with an opportunity to further expand this brand. Going forward, we will continue to expand product rollouts not only at hobby shops, which are the primary area for competition in North America, but also local general retail chains.

Could you comment on the China operations?

Takenaka:The market in inland China is vast, and there remains significant potential for further growth. To that end, we are expanding store numbers for THE GUNDAM BASE, which specializes in the sale of Gundam model kits, and the GASHAPON Bandai Official Shop. Confectioneries enjoy widespread popularity in inland China, and this has helped drive the strong performance of Chocobi—a product created based on a snack featured in the Crayon Shinchan series. Through the rollout of local IP products and local toy and confectionery offerings, we will further expand the businesses moving forward.

Please comment on the digital marketing and EC strategies.

Takenaka:We are promoting our digital marketing strategy by leveraging such tools as social media, which allows us to directly approach customers. Additionally, in 2023 the number of members of PREMIUM BANDAI, the Group’s official e-commerce website, reached over 5.55 million in Japan, and the number of members overseas also continues to grow. Making connections with customers through our own EC platform is an extremely important initiative, and we will thus continue to expand PREMIUM BANDAI with the aim of generating synergies with conventional distribution channels. Also, in inland China, where we do not currently offer PREMIUM BANDAI, we are making use of appropriate EC platforms as we work to expand our fan base and enhance services that let us form direct connections with users.

What are Bandai Namco’s competitive advantages in the global market?

Takenaka:The fact that we can leverage our strong partnerships with rights holders in Japan to develop various products and services is one of our major competitive advantages. In addition, the sales channels we have cultivated in the global market by having overseas locations are another advantage. Although there are various regulations for product rollouts in each country to which we must adhere, we will strive to increase the number or products we rollout simultaneously across the globe. Moving ahead, we will continue to rollout products in a manner that caters to the circumstances in each region, drawing on the strengths of our abundant product categories centered on IPs.

Continuing to create products that make people smile so we can deliver dreams, fun and inspiration around the world

What role does the Toys and Hobby Business play in the Bandai Namco Group?

Takenaka:In addition to driving profits, it is important that the Toys and Hobby Business, which involves a fast-paced product cycle, stay attuned to new IPs as it promotes the Group’s IP axis strategy. In addition, Bandai, which primarily offers products for children, plays a key role in creating future IP fans. Products such as candy toys and GASHAPON, in particular, have numerous contact points with children and therefore are an ideal entryway for cultivating new IP fans.

Could you please discuss notable IP and products for the future?

Takenaka:Broadcasts of Dragon Ball DAIMA began in October, and at the same time, we commenced the roll out of DRAGON BALL SUPER CARD GAME FUSION WORLD. Following the global success of the ONE PIECE CARD GAME, the GUNDAM CARD GAME is slated to be officially released in 2025. In this way, we will continue to focus on expanding our product offerings for popular trading card games.
Furthermore, in August, the DX Henshin Belt Gavv, the transformation belt from KAMEN RIDER GAVV, which is currently being broadcast on TV, won the Japan Toy Award 2024 Grand Prize in the “Character” category, from The Japan Toy Association. In the future, we will continue to offer not only children’s products but also products and services for a broad range of fans.

What are your thoughts on Bandai Namco’s Purpose?

Takenaka:The founder of Bandai used the phrase “bandai fueki,” which embodies the idea of creating products to satisfy people of all ages and pursuing constant corporate growth. This idea is embedded in our Purpose “Fun for All into the Future.” My dream is to continue to create even more products that can bring smiles to the faces of our customers so that the Bandai Namco Group can become a leading company in the global entertainment market. To that end, I will continue to take on challenges across the globe to realize this dream.

What message do you have for your shareholders and other investors?

Takenaka:To deliver dreams, fun and inspiration to an even wider audience around the world, we will strive to create diverse types of entertainment and expand the number of fans who support us. I ask that you look forward in anticipation to the future growth and development of the Bandai Namco Group.

This article is an extract from the Newsletter, Bandai Namco News, which was published in December 2024 and partially re-edited.