Build A Bears Rising Market Share

Introduction to Build-A-Bear Workshop

Founded in 1997, Build-A-Bear Workshop has become a prominent player in the specialty retail sector, offering a unique and interactive experience for customers of all ages. At Build-A-Bear Workshop, individuals can create their own stuffed animals, customizing every aspect from the type of animal to the clothes and accessories. This innovative concept has garnered a loyal customer base and solidified its position in the market.

Overview of Build-A-Bear Workshop

As of July 2021, Build-A-Bear Workshop operates stores in various regions including the United States, Canada, and the United Kingdom, generating revenues of $338 million (GitHub). This specialty retail company has successfully captured the imagination of customers, providing them with a memorable and interactive experience.

Build-A-Bear Workshop has built a reputation for its commitment to quality and customization. By allowing customers to design and personalize their own stuffed animals, the company taps into the desire for unique and meaningful products. This approach has resonated with individuals of all ages, making Build-A-Bear Workshop a popular destination for gifts and special occasions.

Market Share and Revenue

Build-A-Bear Workshop Inc. (NYSE: BBW) has a market capitalization of $116.98 million as of November 2021 (MarketBeat). Over the past years, Build-A-Bear Workshop has demonstrated consistent growth in its market share and revenue. For the trailing twelve months, the company has generated $327.81 million in revenue. This success can be attributed to its unique business model and the ability to connect with customers on an emotional level.

With its strong market presence, Build-A-Bear Workshop continues to expand and adapt to changing consumer preferences. By leveraging its strengths and addressing potential weaknesses, the company has positioned itself for future success in the specialty retail industry. The next section will delve into a detailed SWOT analysis of Build-A-Bear Workshop, shedding light on its internal strengths and weaknesses, as well as external opportunities and threats.

Build-A-Bear Workshop SWOT Analysis

To gain a better understanding of Build-A-Bear Workshop’s market share and position, conducting a SWOT analysis is essential. This analysis highlights the strengths, weaknesses, opportunities, and threats that the company faces in the retail industry.

Strengths of Build-A-Bear Workshop

Build-A-Bear Workshop has several strengths that contribute to its success in the market. These strengths include:

1. Customization and Personalization: Build-A-Bear Workshop allows customers to customize their toys by choosing sounds, dressing them up, and even giving them names. This unique experience sets the company apart from its competitors and creates a strong emotional connection with customers.

2. Strong Brand Recognition: Build-A-Bear Workshop has established a strong brand presence in the specialty retail sector. The company’s brand is widely recognized and associated with high-quality, customizable toys, making it a trusted choice for customers.

3. Global Presence: With stores in various regions, including the United States, Canada, and the United Kingdom, Build-A-Bear Workshop has a broad market reach. This global presence allows the company to tap into different customer segments and expand its customer base.

Weaknesses of Build-A-Bear Workshop

While Build-A-Bear Workshop has numerous strengths, it also faces certain weaknesses that can impact its market share. These weaknesses include:

1. Limited Target Audience: Build-A-Bear Workshop primarily targets children and their parents. This narrow focus limits the potential customer base and restricts the company’s reach to other demographic groups.

2. Reliance on In-Store Experience: Build-A-Bear Workshop’s business model heavily relies on the in-store experience of creating a personalized toy. This reliance on physical stores can be a limitation, especially during times of restricted access or when customers prefer online shopping.

Opportunities for Build-A-Bear Workshop

Identifying and capitalizing on opportunities is crucial for maintaining and expanding market share. Build-A-Bear Workshop has several opportunities to explore:

1. E-commerce Expansion: Investing in and enhancing the online shopping experience can help Build-A-Bear Workshop reach a wider audience and cater to customers who prefer the convenience of online shopping.

2. Product Diversification: Introducing new product lines, such as accessories, clothing, or complementary merchandise, can increase customer engagement and expand revenue streams.

Threats to Build-A-Bear Workshop

Being aware of potential threats is essential for mitigating risks and maintaining market share. Build-A-Bear Workshop faces the following threats:

1. Competition from Online Retailers: The rise of online retailers, including those specializing in toys and personalized products, poses a threat to Build-A-Bear Workshop’s market share. Online retailers often offer convenience, competitive pricing, and a wide range of product options.

2. Economic Factors: Economic factors, such as recessions or fluctuations in consumer spending, can impact Build-A-Bear Workshop’s market share. During challenging economic times, consumers may prioritize essential purchases over discretionary spending.

By understanding its strengths, weaknesses, opportunities, and threats, Build-A-Bear Workshop can develop strategies to leverage its strengths, address weaknesses, capitalize on opportunities, and mitigate threats. This analysis provides valuable insights that can guide decision-making and help maintain and grow market share in the retail industry.

Competitors and Alternatives to Build-A-Bear Workshop

In the competitive landscape of the retail industry, Build-A-Bear Workshop faces competition from various companies offering similar products and experiences. Let’s explore some of the key competitors and alternatives to Build-A-Bear Workshop.

Competitors of Build-A-Bear Workshop

1. Mattel, Inc. (NASDAQ: MAT): Mattel is a global toy manufacturing company that produces a wide range of toys and games. While not solely focused on customizable stuffed animals like Build-A-Bear Workshop, Mattel’s diverse portfolio of brands and products positions it as a competitor in the toy industry.

2. Hasbro, Inc. (NASDAQ: HAS): Hasbro is another major player in the toy industry, known for its iconic brands such as Transformers, Nerf, and My Little Pony. With a wide range of toys and games appealing to different age groups and interests, Hasbro competes with Build-A-Bear Workshop by offering alternative options for children’s entertainment.

3. JAKKS Pacific, Inc. (NASDAQ: JAKK): JAKKS Pacific is a toy and consumer products company that offers a variety of toys, including plush toys, action figures, and dolls. While not specializing in the personalized experience of Build-A-Bear Workshop, JAKKS Pacific competes in the broader toy market.

Alternatives to Build-A-Bear Workshop

1. Party City Holdco Inc. (NYSE: PRTY): Party City is a leading party goods retailer that offers a range of products for celebrations, including party supplies, balloons, and costumes. While not directly focused on stuffed animals, Party City provides an alternative option for customers seeking entertainment and fun experiences.

2. GameStop Corp. (NYSE: GME): GameStop is a retail company primarily known for its video game products and accessories. Although not directly in the same market as Build-A-Bear Workshop, GameStop offers an alternative source of entertainment and interactive experiences for children and gamers.

Considering these competitors and alternatives, Build-A-Bear Workshop sets itself apart from its competitors by providing a unique and customizable experience centered around stuffed animals. By offering customers the opportunity to personalize their own furry friends, Build-A-Bear Workshop creates a niche within the toy industry.

To maintain its market share and differentiate itself from competitors, Build-A-Bear Workshop continues to innovate and expand its offerings. By focusing on delivering exceptional customer experiences and staying attuned to evolving consumer preferences, Build-A-Bear Workshop aims to maintain its position as a leader in the market.

For a comprehensive analysis of Build-A-Bear Workshop’s strengths, weaknesses, opportunities, and threats, refer to our article on Build-A-Bear Workshop SWOT Analysis.

Build-A-Bear Workshop’s Market Positioning

In the competitive retail industry, market positioning plays a crucial role in determining a company’s success. Build-A-Bear Workshop has implemented various strategies to solidify its market position and expand its reach. This section will explore the company’s expansion and global strategy, as well as the challenges and opportunities it faces.

Expansion and Global Strategy

Build-A-Bear Workshop has adopted a comprehensive “go global” strategy to expand its market presence beyond its domestic market. The company has successfully penetrated the international market by opening over 400 branches in various countries, which has boosted its market share and increased consumer convenience (IvyPanda). This expansion has allowed Build-A-Bear Workshop to reach a wider audience and tap into new consumer markets.

To support its global strategy, Build-A-Bear Workshop has leveraged brand licensing, e-commerce, third-party retail, and international franchising efforts. These initiatives have helped the company establish a strong presence in different regions, enabling it to cater to diverse customer preferences and cultural nuances. By expanding internationally, Build-A-Bear Workshop has been able to diversify its revenue streams and reduce its dependence on a single market.

Challenges and Opportunities

Despite its success, Build-A-Bear Workshop faces various challenges in maintaining and growing its market share. One of the primary challenges is the competition from other major firms in the toy industry. Staying ahead of competitors requires continuous innovation, unique product offerings, and exceptional customer experiences. Build-A-Bear Workshop must continually adapt and evolve to differentiate itself from competitors and retain customers.

Additionally, Build-A-Bear Workshop faces challenges related to currency fluctuations, changes in labor laws, and the need to comply with diverse environmental and patent laws in different countries. These challenges require the company to navigate regulatory complexities and effectively manage its global operations.

However, Build-A-Bear Workshop also has several opportunities that can contribute to its continued market growth. The company can further expand its international presence by targeting untapped markets and identifying strategic partnerships. Embracing digital transformation and enhancing its e-commerce capabilities will allow Build-A-Bear Workshop to cater to the evolving needs of customers who prefer online shopping. Additionally, the company can leverage its brand reputation and customer loyalty to introduce new products and services that align with emerging trends in the toy industry.

By strategically addressing these challenges and capitalizing on opportunities, Build-A-Bear Workshop can strengthen its market positioning and continue to expand its market share. The company’s management has demonstrated a commitment to innovation and international growth, which has propelled Build-A-Bear Workshop’s success in an increasingly competitive retail landscape (Argus Research).

Build-A-Bear Workshop’s Market Share

Build-A-Bear Workshop has been steadily growing its market share, both in North America and Europe. Let’s examine the company’s market share growth in these regions and also take a look at its stock performance and market perception.

Market Share Growth in North America and Europe

Build-A-Bear Workshop has been making notable progress in expanding its market share in both North America and Europe. In North America, the company’s market share increased from 5.3% in 2019 to 5.5% in 2020 (Seeking Alpha). This demonstrates the company’s ability to capture a larger share of the market in this region.

Similarly, in Europe, Build-A-Bear Workshop experienced growth in its market share, rising from 3.7% in 2019 to 4.2% in 2020 (Seeking Alpha). This expansion highlights the company’s successful efforts to establish a stronger presence and attract customers in the European market.

Stock Performance and Market Perception

While Build-A-Bear Workshop has shown positive market share growth, its stock performance has not been as strong. The company’s stock has been trading at a significant discount compared to its intrinsic value, indicating that the market may be overlooking the potential of the company.

It is important to note that the stock market’s perception of a company does not always reflect its true value or potential. Build-A-Bear Workshop’s market share growth and expansion efforts indicate its ability to attract customers and increase its presence in the industry. However, the stock’s underperformance suggests that investors may not fully recognize the company’s value.

As Build-A-Bear Workshop continues to strengthen its market position and expand its market share, it is possible that the market perception of the company may change. Investors and analysts may start to recognize the company’s growth potential, leading to a reevaluation of its stock performance.

It is important for investors and market participants to consider both the company’s market share growth and its stock performance when assessing the overall position of Build-A-Bear Workshop in the market.

For more information on Build-A-Bear Workshop’s market positioning and strategies, refer to our article on build a bear marketing strategy.

Build-A-Bear Workshop’s Market Share in the Toys & Hobbies Industry

Build-A-Bear Workshop has established a strong presence in the Toys & Hobbies industry, capturing a significant market share. Let’s explore Build-A-Bear Workshop’s market share in the United States, how it outperforms competitors, and its website traffic and market positioning.

Market Share in the United States

As of August 2021, Build-A-Bear Workshop holds a leading market share of 59.5% in the Toys & Hobbies industry in the United States. This substantial market share reflects the popularity and success of Build-A-Bear Workshop among its target audience.

Outperforming Competitors

Within the Toys & Hobbies industry in the United States, Build-A-Bear Workshop demonstrates strong performance by outperforming key competitors. Comparatively, The LEGO Group holds a market share of 13.9%, while American Girl captures 4.9% of the market share. Build-A-Bear Workshop surpasses both these competitors, highlighting its position as a dominant player in the industry (SimilarWeb).

Website Traffic and Market Positioning

Build-A-Bear Workshop exhibits a robust market positioning in the United States, commanding a larger share of website traffic compared to its top four competitors combined. This signifies the brand’s popularity and the strong appeal it holds among customers. In August 2021, the website traffic of Build-A-Bear Workshop experienced a significant increase, surpassing key competitors such as LEGO.com and Toysrus.com. This growth in website traffic indicates a strong market presence and customer engagement (SimilarWeb).

Build-A-Bear Workshop’s ability to maintain a substantial market share and outperform competitors in the Toys & Hobbies industry highlights its strong brand presence and appeal among customers. The significant website traffic it receives further solidifies its position as a leading player in the market. By continuously adapting and innovating, Build-A-Bear Workshop has managed to establish itself as a dominant force in the industry, capturing the hearts of children and families alike.

Build-A-Bear Workshop’s Marketing Mix Strategy

To maintain and expand its market share, Build-A-Bear Workshop employs a comprehensive marketing mix strategy that encompasses various aspects of product development, pricing, distribution, and promotion.

Product Strategy

Build-A-Bear Workshop operates under a focused differentiation strategy, catering to the needs and preferences of a narrow buyer segment. The company allows customers to customize their toys by selecting sounds, dressing them, and even naming them. This level of personalization sets Build-A-Bear Workshop apart from its competitors and appeals to customers seeking unique and interactive experiences (IvyPanda).

Pricing Strategy

Build-A-Bear Workshop’s pricing strategy is based on the concept of offering different price points depending on customers’ individual preferences. The company’s “pay your own price” model allows customers to manipulate the product according to their preferences and financial capabilities. This strategy accommodates various classes of people, making the brand accessible to a wider audience (IvyPanda).

Distribution Strategy

Build-A-Bear Workshop has implemented a “go global” strategy to expand its market share. The company focuses on penetrating international markets by opening branches in various countries. With over 400 locations worldwide, Build-A-Bear Workshop has achieved greater market reach and increased convenience for consumers. In addition to its physical stores, the company has also enhanced its distribution channels through e-commerce, allowing customers to conveniently purchase their customized toys online.

Promotion Strategy

Build-A-Bear Workshop employs various promotional strategies to increase brand awareness and attract customers. The company utilizes traditional advertising channels, such as television and print media, to reach a wide audience. Moreover, Build-A-Bear Workshop actively engages with customers through social media platforms and influencer collaborations, leveraging the power of digital marketing to connect with its target audience.

To further enhance its promotional efforts, Build-A-Bear Workshop focuses on partnerships and collaborations that expand its brand reach. By partnering with popular franchises and characters, the company taps into existing fan bases, driving interest and boosting sales.

By combining a strong product strategy, flexible pricing options, a global distribution network, and effective promotion techniques, Build-A-Bear Workshop has successfully positioned itself in the market and continues to attract customers who value a unique and interactive toy-buying experience.

Leveraging Competitive Intelligence

In the highly competitive retail industry, companies like Build-A-Bear Workshop can benefit greatly from leveraging competitive intelligence. By gathering and analyzing information about their competitors, businesses can gain valuable insights that help inform their strategic decisions. This section will explore the benefits of competitive intelligence, the role it plays in sales enablement strategy, and the use of competitive intelligence platforms.

Benefits of Competitive Intelligence

Competitive intelligence provides several key benefits to companies like Build-A-Bear Workshop. By monitoring and analyzing their competitors, businesses can:

• Gain a deeper understanding of the market landscape and industry trends.
• Identify the strengths and weaknesses of their competitors, allowing them to position themselves more effectively.
• Identify opportunities for growth and innovation.
• Anticipate and mitigate potential threats.
• Make informed strategic decisions based on market insights.

These benefits enable companies to stay ahead of the competition, adapt to changing market conditions, and drive business growth.

Sales Enablement Strategy

Competitive intelligence plays a crucial role in a sales enablement strategy. By equipping sales teams with up-to-date and accurate information about the market and competitors, businesses can empower their salesforce to:

• Understand the competitive landscape and position their products or services effectively.
• Identify customer pain points and tailor their sales approach to address them.
• Anticipate objections and provide compelling reasons why their offerings are superior to those of competitors.
• Stay informed about industry trends and customer preferences, enabling them to provide relevant solutions.
• Identify new opportunities and potential upsell or cross-sell opportunities.

By leveraging competitive intelligence in their sales enablement strategy, companies like Build-A-Bear Workshop can equip their sales teams with the tools and knowledge needed to outperform competitors and drive revenue growth.

Using Competitive Intelligence Platforms

To effectively gather and analyze competitive intelligence, businesses can utilize competitive intelligence platforms such as Watch My Competitor. These platforms utilize AI-driven insights tailored to specific industries, providing targeted recommendations to teams to help them outsmart the competition and grow revenue.

Competitive intelligence platforms offer a range of features and capabilities, including:

• Monitoring and tracking competitors’ activities, such as product launches, marketing campaigns, and pricing strategies.
• Analyzing market trends and industry dynamics.
• Providing real-time updates and alerts about relevant industry news and developments.
• Offering comprehensive reports and visualizations to facilitate data-driven decision-making.
• Identifying commercial threats and opportunities for business growth.

By leveraging competitive intelligence platforms, businesses can free their teams from outdated data collection methods and gain access to timely and relevant insights. This empowers organizations like Build-A-Bear Workshop to make informed decisions, stay ahead of the competition, and drive success in the market.

By leveraging competitive intelligence, integrating it into sales enablement strategies, and utilizing dedicated platforms, companies like Build-A-Bear Workshop can gain a competitive edge and make informed decisions that drive their market share growth.

Historical Stock Performance of Build-A-Bear Workshop

A key aspect of understanding the market share and performance of a company like Build-A-Bear Workshop is analyzing its historical stock performance. By examining the stock price over time, we can gain insights into the market’s perception and valuation of the company.

Stock Price Analysis

Build-A-Bear Workshop’s stock price has experienced significant fluctuations over the years. A notable milestone was reached in October 2007 when the stock price exceeded $30 per share. However, in the subsequent years, the company faced challenges, leading to a substantial decline in its stock price. In 2008, the stock price dropped below $2 per share and continued at low levels for the subsequent years (Macrotrends).

Despite the challenges faced by retail businesses, Build-A-Bear Workshop has been focused on strategic initiatives, resulting in strong free cash flow generation and growing market share (Seeking Alpha). However, the stock has underperformed, trading at a significant discount compared to its intrinsic value (Seeking Alpha).

It’s important to note that the stock price of a company can be influenced by various factors, including market trends, industry dynamics, and investor sentiment. While historical stock performance provides valuable insights, it should not be the sole determinant of a company’s market share or future prospects. Other factors such as financial performance, strategic initiatives, and market positioning also play significant roles in evaluating a company’s overall health.

As Build-A-Bear Workshop continues to invest in digital initiatives and expand internationally, its focus on enhancing e-commerce capabilities and adapting to changing consumer preferences positions the company for future growth (Seeking Alpha).

To gain a comprehensive understanding of Build-A-Bear Workshop’s market share and performance, it is important to consider the company’s financial reports, investor presentations, and industry analysis. These sources can provide deeper insights into the company’s financial health, growth strategies, and market positioning.

Build-A-Bear Workshop’s Market Share in the Toys & Hobbies Industry

Build-A-Bear Workshop has established a significant market share within the toys and hobbies industry. Let’s explore its market share in the United States, its performance compared to competitors, and its market positioning based on website traffic.

Market Share in the United States

Build-A-Bear Workshop has been steadily growing its market share in the United States. According to a report by Argus Research, its market share in the make-your-own-animal retail space in the U.S. and Canada grew from 7.8% in 2015 to 9.79% in 2019 (Argus Research). This growth demonstrates the company’s ability to expand its market presence and attract customers in a competitive industry.

Build-A-Bear Workshop’s market share in the U.S. toys and hobbies industry positions it as a strong player, competing with other established companies in the industry.

Outperforming Competitors

Build-A-Bear Workshop faces competition from various companies in the toys and hobbies industry, including Mattel, Inc. (NASDAQ: MAT), Hasbro, Inc. (NASDAQ: HAS), and JAKKS Pacific, Inc. (NASDAQ: JAKK) (MarketBeat). While these competitors have their own strengths and market presence, Build-A-Bear Workshop has managed to carve out a niche for itself.

In 2019, Build-A-Bear Workshop held a market share of 16.7% in the make-your-own-animal retail space in the U.S. and Canada, tying with Michaels for the top spot in this sector according to Argus Research. This indicates that Build-A-Bear Workshop has successfully positioned itself as a leader in the make-your-own-animal retail space, outperforming competitors in terms of market share.

Website Traffic and Market Positioning

Website traffic can provide insights into a company’s market positioning and popularity. While specific website traffic data for Build-A-Bear Workshop is not available, the company’s focus on brand licensing, e-commerce, third-party retail, and international franchising efforts has contributed to its market share growth. These strategies have likely driven customer engagement and increased awareness of the Build-A-Bear Workshop brand.

By leveraging brand licensing and expanding its presence through various channels, Build-A-Bear Workshop has positioned itself as a recognizable and accessible brand in the toys and hobbies industry.

In conclusion, Build-A-Bear Workshop has successfully grown its market share in the toys and hobbies industry, particularly in the make-your-own-animal retail space. Its market share growth in North America, outperformance of competitors, and strategic marketing efforts have contributed to its strong market positioning and recognition.