Funko Takes Over Comic-Con (But Mondo's First)

Crypto and the stock market may be crashing, but collectibles show no signs of losing their value. It’s fitting then that Funko, the miner of pop culture figurines rendered in the brand’s recognizable black eyes and oversized heads, is bullish on its own grand growth plans. The Everett, Washington-based collectibles company is trying to pull off two big marketing tricks in a space with no shortage of attention-getting brand and fan antics. For Funko’s 19th appearance at San Diego Comic-Con, the company is going beyond the most extravagantly fantastic booth concept. It is installing and fabricating its own “small-town” within the San Diego Convention Center, which has been the home of Comic-Con for the past 20 of the event’s 49 years. Secondly, Funko is expanding its licensing and marketing reach among fans and creators by acquiring rival collectibles company Mondo—from art house movie theater/pub chain Alamo Drafthouse Cinemas. The 21-year-old Austin-based Mondo complements Funko’s action figures and statuettes by making vinyl records, posters, soundtracks, apparel, books, games and toys. For the most part, Comic-Con is a continuation of Funko’s representation as a bridge between reality and fantasy. In November, Funko climbed a new rung on its growth ladder when it made its debut at the Macy’s Thanksgiving Day Parade with a “Baby Yoda” (aka Grogu) balloon. “It’s going to blow the minds of attendees,” Funko CEO Andrew Perlmutter told Adweek of the brand’s return to Comic-Con. “We’re just so excited to finally be back interacting with our core community—and the thousands of Funko fans that travel from all over the world to experience SDCC. We held virtual conventions in 2020 and 2021 to much fanfare, but there’s just something so magical about the buzz and energy of in-person events that is impossible to replicate virtually.” Total Mondo The Comic-Con blowout and the Mondo acquisition are key steps in Perlmutter’s aspiration of turning the toy maker into a full-blown pop culture and “creator lifestyle” powerhouse. No matter how bright or dark the times are, spectacle and nostalgia are unbeatable combinations for unlocking consumer spending, while promoting brand awareness and affinity. (Financial terms of the deal were not disclosed, but the publicly traded Funko told investors the purchase would not have a material impact on its bottom line.) “We’re always looking for opportunities to expand Funko's pop culture platform through the addition of adjacent physical and digital categories and brands, both organically and through acquisition when appropriate,” Perlmutter said. “It’s an exciting opportunity to couple Mondo’s already stellar product assortment and aesthetic with Funko’s massive property library. We’re a team of creators and the addition of more creators only fuels innovation.” Funko's 'Toucan Pirate' makes a special appearance at Comic-Con. Mondo adds a bit more flavoring to Funko’s real secret sauce. And that sauce is Funko’s ability to continually inspire brands from Lucasfilm to Macy’s to tap into its licensing and marketing prowess. That value was recognized in May. That’s when an investor consortium including eBay, former Disney Chairman and CEO Bob Iger and Rich Paul, the CEO/founder of Klutch Sports Group and head of Sports at United Talent Agency, made a $263 million strategic investment in Funko. The deal was led by The Chernin Group, which is run by Peter Chernin, the former cable executive and president/COO of News Corp. from the late 1990s through the early 2000s. The investment was yet another example of how Funko has grown up by remaining true to its kid origins. The streets of Funkoville What better way to bottle all that brand building confidence than with its own city-within-a-city at Comic-Con with Funkoville. Attendees will be able to explore the pre-fab neighborhood, which will include an interactive movie theater, candy shop, boutique, record store, grocery and more. The “streets” of Funkoville serves as the ultimate showcase of Funko products (i.e., SDCC exclusives like the limited-edition figures, Rocker Toucan and Pirate Toucan). Lastly, Funkoville will also bring together fan activities like “blacklight-themed Fundays” and a panel with celebrity guests Rosario Dawson, Karate Kid’s William Zabka and Simu Liu, who plays Shang-Chi in the Marvel Cinematic Universe. Comic-Con runs from July 21 through July 24. Gotta have that Funko The distance enforced by the pandemic “really humbled us,” Perlmutter said, speaking about the collective feelings of brands and fans. Funko did test the waters when considering the reemergence of in-person events. The brand presented at April’s WonderCon and at the Star Wars Celebration in May. Both events were held in Anaheim, CA. “We understand how important it is to be physically present at these ‘cons’ and connect face-to-face with your community,” Perlmutter said. “Our social media presence is incredible. But there’s nothing that tops the energy of being amongst fans. We’ve been sidelined for two years due to Covid and it gave us great perspective. The team was tasked with creating an experience that supersedes anything we’ve ever done before. And I think we’ve delivered.” Funko Grows Up With Baby Yoda for its Macy’s Thanksgiving Day Parade Debut But after 19 years of showing up at Comic-Con, what’s the value to a brand like Funko, which is so firmly established around the globe? Is it about reinforcing Funko’s connection to comics fans? Is it about reaching a new audience? “The value is the connection made between Funko and our fanbase,” Perlmutter said. “We are a company of pop culture fanatics serving other pop culture fanatics. It’s at San Diego Comic-Con where we hear from the fans directly about what they want to see more of from Funko and how we can best serve them.”

Branding

Funko Takes Over Comic-Con—But First, It's Taking Rival Collectibles Brand Mondo

Humbled, but not hindered by pandemic-required distancing, the toy maker is ready to kid around again

David Kaplan

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David Kaplan