October 1, 2025 • 16 mins
What powers a global fandom machine? We sat down with Funko’s Chief Product Officer, Husnal Shah, to trace the line from a week‑one Disney sellout to 900 licenses and a milestone few toy companies reach in decades. We break down the three Cs—Culture, Creativity, Commerce—that decide which figures get made, why certain iconic moments jump off the shelf, and how a recognizable form can still surprise you when it captures the perfect story beat. 🪀
Husnal opens the door to Funko’s incubation lab, where blue‑sky ideas meet real‑time signals from sales, marketing, and social listening. You'll hear how concepts progress from a creative showcase to 3D prints, then to tooling and production—all while the launch story and marketing plan develop in parallel.
We get into the rise of Pop Yourself, the personalized experience that turns collectors into characters, and why gifting for birthdays, weddings, and holidays has turned customization into a growth engine. There's also a frank look at resilience, including diversified sourcing across Asia, navigating geopolitical and pandemic difficulties, and reaching new audiences as kids shift earlier to gaming, YouTube, and social platforms. 🎮
Looking forward, we explore how AR and digital layers can elevate discovery and display, including virtual try-ons, interactive unboxings, and community moments that bridge physical and digital shelves. We also talk geo expansion, and why Funko organizes teams by fandom to keep authenticity high in anime, music, film, and gaming. For anyone interested in product strategy, licensing, collectibles, or the business of culture, this conversation maps how a beloved form factory stays fresh and how the next billion could be even more personal. 🧸
If you enjoyed this conversation, follow the show, share it with a friend who collects, or leave a quick review—what topic should we "pop" next?
For more information about the innovations that are shaping tomorrow's world, head to https://tomorrowsworldtoday.com/
To keep up-to-date with the latest in innovation, technology, sustainability, and more connect with us on social:
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
George M. Davison (00:18):
Hello everybody and welcome to another
edition of Tomorrow's WorldToday.
And today we have a specialguest.
Her name is Hunal Schon, andshe's from the Funco
Corporation.
Welcome.
Husnal Shah (00:28):
Thank you.
Glad to be here.
George M. Davison (00:30):
Well, I just heard a little uh whisper that
uh there was a big landmark uhnumber that you uh that you guys
went through at Funco.
Husnal Shah (00:38):
Yes, we surpassed one billion unit mark for Funko
Pops sold in July of this year.
George M. Davison (00:44):
Oh my goodness.
Husnal Shah (00:45):
And we have done that in 15 years, which is the
fastest compared to any othertoy company.
George M. Davison (00:51):
So you've sold a billion Funco pops in 15
years?
Correct.
Congratulations.
Thank you.
That's very exciting.
Yeah.
I think our audience would loveto hear more about Funko and
and more about you or yourselfas well.
Husnal Shah (01:04):
Sure.
George M. Davison (01:05):
So can you talk to us a little bit about,
you know, 15 years ago, what wasgoing on that created this
phenomenon?
Husnal Shah (01:12):
Fifteen years ago, our CEO, the then CEO, came up
with the iconic form factor inin its stylized form and brought
it to me at the Walt DisneyCompany when he was trying to
expand the format.
We looked at it on the otherside of the table and we brought
it into the Disney stores, thevertical channels of the
(01:33):
business.
It sold out in a week.
And from there on, the rest ishistory.
Disney gave him the license,they got other licenses, and
today we have about 900different licenses.
And we basically sell thisformat to the world at large.
Globally, we are exportingthem, we are distributing to
different pop markets withinAsia as well as in the UAE and
(01:56):
as well as AMEA.
George M. Davison (01:57):
Just curious about, you know, why do you
think it has become aphenomenon?
What's the attraction thatpulls so many people to the
pops?
Husnal Shah (02:05):
I think this was a miracle product in itself,
because if you look at the formitself, it's with the big head,
with the big eyes, and thehigh-end collectible nature of
it, the materials that we use uhreally lend itself to being
recognizable as well as there'san affinity that that our fans
have towards it.
So I feel like that's thereason why it's become so big.
(02:28):
Also, we've noticed that wehave been able to adapt any
sorts of uh characters and andpersonalities on this form very
easily.
And this is a collaborationthat we've had with all of our
licensers to know to be able todo that.
So I think that's the reasonwhy it's still going after 15
years and after selling onebillion versions of it.
George M. Davison (02:48):
It's f it's a great story.
You mentioned that you used towork at Disney.
I did.
Could you tell our audience alittle more about your story?
I mean my story.
Yes, I mean because you'rewhat's referred to as a chief
product officer, is thatcorrect?
Husnal Shah (03:00):
Correct.
So I grew up in India.
I was born and raised there.
I after I completed mymaster's, I came to the United
States.
This was about 23 years ago.
And from there on, my firstforay into a world of career was
in toys.
So I started with a small toycompany, ground zero, very
educational and foundational forme to understanding the product
(03:22):
as well as the industry.
And then from there I said, letme try something else.
I was really young.
And so I went into banking andthen went into construction,
didn't quite like it, and movedback into consumer products with
the children's place, and thenquickly transitioned to the Walt
Disney Company.
This was in 2006.
So it's been 16 or so yearswith the Walt Disney Company,
(03:42):
and those years were veryformative for me in
understanding the entirety ofthe hard lines business, not
just toys.
And then about four years ago,I came to Funko.
I was invited and I made themove.
And ever since being withFunko, I'm excited.
I look forward to the future ofFunko.
There's so much potential tounleash.
We are limited by our ownbandwidth, but creativity is
(04:06):
oozing from every angle.
George M. Davison (04:08):
Wow, that's a great transition because I was
going to ask you today about,you know, the the art of coming
up with ideas, right?
And how they are shaped into acreative thought and then put
into reality one day.
Can you talk a little bit?
I mean, I know you can't talkabout the secret insides of how
things work, but what could youshare with our audience about
(04:29):
why the art of creativity andideas is so exciting?
Husnal Shah (04:34):
So I think Funko is the ultimate expression of
fandom, right?
And so what drives creativitywithin Funko is our fans across
the globe.
Whether they are into anime ormusic or, you know,
entertainment, movies, films,gaming, we create something for
everyone out there.
And so I feel that is thesecret source of Funko because
(04:56):
there's so much content outthere.
For us to pick and choose theright type of content to really
bring to life means that thatcharacter and or personality or
story needs to have culturalrelevance because we are a pop
culture company, right?
And have a fan following.
So that is what is exciting andthe secret source of how Funko
makes products and our belief inhow products come to life.
George M. Davison (05:18):
And you have a couple different ways to do
it.
Like you can custom up your ownpop, but you also decide on
certain pops that you want tobring to market and mass
produce, right?
Right.
Correct.
So how does how do you make adecision when it like when is it
time to mass produce a pop?
Husnal Shah (05:37):
So I look at it in two ways.
One is when you when you cancustomize or personalize a pop
for yourself.
So we came up with this productline, which was in a couple of
years ago.
We were hearing from our fansthat they want to be part of the
story.
They obviously want to collectfamous people and display them
on their shelves, but they alsowant to be part of the story.
So we came up with Pop Yourselfas a product line that launched
(05:58):
two years ago.
And it's done so well for us,where a collector can actually
go and pop themselves via oure-comm channels and create
one-of-one bespoke versions ofthemselves to their interests as
well as their likeness.
And then the next iteration ofit is to your point, how do we
mass-produce something?
So, mass-producing something,we we really have three C's we
(06:18):
go by culture, creativity, aswell as commerce, right?
So if that format or that genrefits in the three C's, it will
be mass-produced.
So, for example, because we area pop culture company, cultural
relevance really matters to us.
It means that that figure has acultural impact and is relevant
today or was relevant orsomebody's reliving the
(06:41):
nostalgic story from the past.
And so that is important.
And then every figure we creategrows through a creative lens
in that we have to ensure thatwe're bringing the good figure's
most iconic moment or story orpersonality to life in a
tangible form.
I see.
So creativity is key.
And then commercials.
Obviously, it has to, you know,be a brand deposit to the
(07:05):
company or bring in revenue.
So those are the three threeC's that we filter everything,
every decision through to ensurethat we can mass produce.
George M. Davison (07:13):
It's wonderful.
So you've you've basically alsoby studying your audience and
trying to understand thatthey're well, they want to be
involved with with yourcreations, right?
Right.
So when they're when they popthemselves, it helps them to I
guess that's like a trend rightnow in in online, too.
Husnal Shah (07:32):
It's it's very gifting as well.
So either you are able to popyourself and display yourself,
or it's we've noticed that ourcustomers and our fans are
really doing it from a giftinglens, so to commemorate a
birthday or or a wedding or ananniversary graduation or
seasonal for Valentine's orHalloween or the holidays as
(07:53):
gifts for their loved ones ortheir friends and families.
So there's one aspect wherethey'll pop themselves, but
another they're popping theirloved one in their favorite
team's jersey.
Or or or, you know, because wehave those licensing
partnerships too within PopYourself.
If you're a Harry Potter fan,you can pop yourself as a Harry
Potter character and give it asa gift to a friend.
So we have all of that.
(08:13):
So the future ofpersonalization is massive.
And I can't tell youeverything, but I can tell you
we have something brewing in thepipeline for next year, which
we'll be announcing soon in Q2.
George M. Davison (08:24):
Ah, well, can you give us even a little hint?
Husnal Shah (08:29):
Sorry.
How do I pick it up from there?
George M. Davison (08:41):
Okay, um, let's see here.
So what do you see as some ofthe bigger challenges?
As Funco is leapfrogging past abillion units sold.
Where do you see the futuregoing?
Husnal Shah (08:53):
From a challenge standpoint, there is this
twofold.
One is just the globalvolatility in the supply chain
and the disruptions caused,either due to the pandemic as we
just had COVID or due to, youknow, uh geopolitical reasons.
Funco has a sourcing team thathas really diversified our
source country of distributionsuch that we are in more than
(09:16):
one country than across Asia toreally optimize our supply chain
and really position our productsuch that such disruptions
don't cause us issues.
So we've made the supply chaina lot more resilient than what
it what it was.
So we've taken care of thatissue.
On the other hand, you we dohave new new consumer segments
(09:38):
that continue to come into ourspace.
How do we attract that audienceinto the fun covers?
We call it the fun covers.
Yes.
Right?
And so coming up with the newnewest innovations, with the new
product lines, you know, reallythinking through expansion uh
objectives is what we are into.
And that all of this is reallygoing to help mitigate the risks
(09:59):
and the challenges that we seein the future.
George M. Davison (10:01):
That makes sense.
So as a chief product officer,you're looking at everything
from raw material supplies tologistics to making sure that
whatever's getting popped, youcan supply the marketplace at
all times, right?
Husnal Shah (10:15):
Correct.
So that's one aspect.
So literally within the productumbrella, we have a creative
design and development sourcing,uh logistics, merchandising,
product strategy sits withinproduct.
So it's anything from themoment you can dream of a
product to materializing it andshipping it to our end customer,
is the product team.
George M. Davison (10:35):
I see.
Husnal Shah (10:35):
So there's 12 different functions that sit
within the team.
George M. Davison (10:38):
When you look at them, you see like, oh,
these toys are so much fun, butthere's really a lot going on by
the team.
Husnal Shah (10:43):
Oh, there's a lot going on.
I'm not like Tom Hanks frombig.
George M. Davison (10:48):
Right, right.
Husnal Shah (10:49):
There's a lot going on behind the scenes.
It is a challengingenvironment, and but it's a lot
of fun as well.
And it's very fulfilling.
George M. Davison (10:56):
So talk to us a little bit about the journey
of how an idea comes to life inyour company and then eventually
gets prototyped and then itgoes to a committee where
they're deciding does it meetthese three C's.
Yeah.
Can you talk to us a little bitabout the journey?
Husnal Shah (11:13):
Yeah, so we have a thing that's called the
incubation lab, right?
Where our creative teams gettogether and they are
spitballing and brainstormingblue sky ideas, right?
That's one aspect ofcreativity.
And they come up with the bestproducts.
And like I said, we are limitedby time and our own bandwidth
to really bring everything tolife.
Yes.
But that's one aspect of it.
And the other aspect is wehave, you know, tested and
(11:36):
really oiled the machine ofinnovation all the way through
to commercialization.
And it's not a linear process,it's a literally a loop that
that we continuously getfeedback from our sales teams,
our marketing teams, sociallistening, what our fans are
talking about, you know, what'strending out there from our
licenses and the space we wantto be in, right?
That information is taken anditerated upon, as well as the
(12:00):
blue sky ideation that I justtalked about earlier.
From there comes out the bestof kind products, right?
Whether it's IPs that we wantto be in, it's genres we want to
be in, it's it's basicallyproduct lines we want to bring
to market.
So once these ideas are alittle more solidified and baked
via the incubation lab, there'sa pitch that occurs.
It's called the creativeshowcase.
(12:21):
Okay.
And it's really thought throughbecause it's not just blue sky.
We obviously we want to bringproducts to market that'll
actually be commercial in themarket and not just great
products.
The ideas are great, right?
But that's only 10% of thebattle one.
Right, right.
Once these ideas are pitched toour sales teams and our buyers
globally, they form the part ofthe assortment.
(12:42):
And then we start to developthese ideas and really do go
into sampling and and you know,3D printing, et cetera, with our
third-party factory base aswell as our licenses.
And then we come to a placewhere we agree on the final
model, which then goes intotooling and then into production
and then out.
George M. Davison (12:59):
Sounds like a uh Yeah, I'm very familiar with
research and development.
That sounds like an ecosystem,an innovation ecosystem, right?
100%.
So you're developing thatconcept to a point where you
could pitch it to your salesdepartment to figure out whether
or not because if you don't getif you don't get in alignment
with your sales department,you're not going to be able to.
Husnal Shah (13:19):
They have to buy in as much as you bought in.
George M. Davison (13:21):
Yes.
Husnal Shah (13:21):
To really be able to.
And then I also believe there'sa there's an element to a
product where a product is aproduct.
Until you don't tell the storyof the product and then you're
not marketing it right, it's notgoing anywhere.
So with the sales and themarketing teams and our branding
teams, we really ensure when Italk about commercialization,
the process of innovation tocommercialization, it starts
(13:43):
together.
Yes.
So while you're formulating aproduct, you're also this part
of the house is coming in andtalking about how we will be
market it, what is the viralitygoing to look like of this
product.
And then there's a there's aback and forth and it
reiteration and still we land onthe final look and feel of the
product.
George M. Davison (13:59):
Right.
That makes sense.
So let's project into thefuture, into tomorrow's world.
And tell us what you seehappening in the you can relate
it to how where Funko is goingin the future or you know how it
ties to the toy industry as awhole.
Husnal Shah (14:15):
Yeah.
George M. Davison (14:16):
Can you can you walk us through that future,
what you see happening?
Husnal Shah (14:19):
Yeah.
So the toy industry is evolvingmassively, right?
We also know that kids arefalling out of toys mu at a much
younger age and going into, youknow, gaming.
They are on their iPads and onsocial media.
YouTube is a big influx ofpreteens and and gen alpha,
right?
So we study all these trendsthat are happening, whether it's
(14:42):
generational or it'scontent-based, or a new fandom,
the rise of a new fandom and afall of another fandom.
So the team, our merchandisingteam, is really in tune watching
these trends.
Funco's future lies in reallybeing able to innovate and
amplify our digital experiences,right?
Using AR tools and creativetools, as well as expanding
(15:06):
globally in in markets where popculture and the pop market is
uh expanding.
Philippines is one of thosemarkets where we just opened a
licensing store and we continueto expand our licensing store
footprints across the globe.
So that's where I see thefuture for Funco.
While innovation is key andproduct ideation is key,
(15:27):
expansion happens throughdigital experience, geo
expansion, as well as gettinginto an AR space and really
being able to talk to our fansloud and clear.
George M. Davison (15:38):
That's wonderful.
It looks like you your team'sreally thinking it through.
Husnal Shah (15:42):
They absolutely are.
We have best in class people,experts in the field, and so I'm
really proud of the team.
For example, you talked aboutcreativity.
The way we set up our teams isthe artist that works on anime,
for example, knows the in andout of anime.
He is into the stories, intothe characters, knows what's
coming out in the future.
So while he's developing andcreating those concepts, he can
(16:05):
really tell the characteremotionally as well as the
personalities coming to life inthe character.
And then it flows throughwithin the entire team.
The merchandiser that is doingmerchandising it for anime knows
everything about anime, and sodoes the sourcing person as well
as the product developer.
So the whole team is a unitthat breeds and lives anime.
And then you're getting thebest product out there.
(16:27):
So all teams, we have teamsbuilt by fandom, and that's how
they operate.
George M. Davison (16:32):
Yes, wonderful.
So with the future ofeverything, and just getting a
little more background.
So have you popped yourselfyet?
Husnal Shah (16:38):
Multiple times.
Yeah.
And I plan to do it over andover again.
And I'll give one to you too,George.
George M. Davison (16:44):
Oh, thank you.
It's it is fun, isn't it?
Husnal Shah (16:46):
Yes, it is.
It's a lot of fun.
And I encourage everyone overhere to go pop themselves.
George M. Davison (16:51):
Husnall, thanks for being with us today.
Thank you so much for havingme.
Well, everybody, that's anotheredition of Tomorrow's World
Today.
Bye now.
Thank you for listening to thisepisode of Tomorrow's World
Today podcast.
Hello everybody and welcome to another
edition of Tomorrow's WorldToday.
And today we have a specialguest.
Her name is Hunal Schon, andshe's from the Funco
Corporation.
Welcome.
Husnal Shah (00:28):
Thank you.
Glad to be here.
George M. Davison (00:30):
Well, I just heard a little uh whisper that
uh there was a big landmark uhnumber that you uh that you guys
went through at Funco.
Husnal Shah (00:38):
Yes, we surpassed one billion unit mark for Funko
Pops sold in July of this year.
George M. Davison (00:44):
Oh my goodness.
Husnal Shah (00:45):
And we have done that in 15 years, which is the
fastest compared to any othertoy company.
George M. Davison (00:51):
So you've sold a billion Funco pops in 15
years?
Correct.
Congratulations.
Thank you.
That's very exciting.
Yeah.
I think our audience would loveto hear more about Funko and
and more about you or yourselfas well.
Husnal Shah (01:04):
Sure.
George M. Davison (01:05):
So can you talk to us a little bit about,
you know, 15 years ago, what wasgoing on that created this
phenomenon?
Husnal Shah (01:12):
Fifteen years ago, our CEO, the then CEO, came up
with the iconic form factor inin its stylized form and brought
it to me at the Walt DisneyCompany when he was trying to
expand the format.
We looked at it on the otherside of the table and we brought
it into the Disney stores, thevertical channels of the
(01:33):
business.
It sold out in a week.
And from there on, the rest ishistory.
Disney gave him the license,they got other licenses, and
today we have about 900different licenses.
And we basically sell thisformat to the world at large.
Globally, we are exportingthem, we are distributing to
different pop markets withinAsia as well as in the UAE and
(01:56):
as well as AMEA.
George M. Davison (01:57):
Just curious about, you know, why do you
think it has become aphenomenon?
What's the attraction thatpulls so many people to the
pops?
Husnal Shah (02:05):
I think this was a miracle product in itself,
because if you look at the formitself, it's with the big head,
with the big eyes, and thehigh-end collectible nature of
it, the materials that we use uhreally lend itself to being
recognizable as well as there'san affinity that that our fans
have towards it.
So I feel like that's thereason why it's become so big.
(02:28):
Also, we've noticed that wehave been able to adapt any
sorts of uh characters and andpersonalities on this form very
easily.
And this is a collaborationthat we've had with all of our
licensers to know to be able todo that.
So I think that's the reasonwhy it's still going after 15
years and after selling onebillion versions of it.
George M. Davison (02:48):
It's f it's a great story.
You mentioned that you used towork at Disney.
I did.
Could you tell our audience alittle more about your story?
I mean my story.
Yes, I mean because you'rewhat's referred to as a chief
product officer, is thatcorrect?
Husnal Shah (03:00):
Correct.
So I grew up in India.
I was born and raised there.
I after I completed mymaster's, I came to the United
States.
This was about 23 years ago.
And from there on, my firstforay into a world of career was
in toys.
So I started with a small toycompany, ground zero, very
educational and foundational forme to understanding the product
(03:22):
as well as the industry.
And then from there I said, letme try something else.
I was really young.
And so I went into banking andthen went into construction,
didn't quite like it, and movedback into consumer products with
the children's place, and thenquickly transitioned to the Walt
Disney Company.
This was in 2006.
So it's been 16 or so yearswith the Walt Disney Company,
(03:42):
and those years were veryformative for me in
understanding the entirety ofthe hard lines business, not
just toys.
And then about four years ago,I came to Funko.
I was invited and I made themove.
And ever since being withFunko, I'm excited.
I look forward to the future ofFunko.
There's so much potential tounleash.
We are limited by our ownbandwidth, but creativity is
(04:06):
oozing from every angle.
George M. Davison (04:08):
Wow, that's a great transition because I was
going to ask you today about,you know, the the art of coming
up with ideas, right?
And how they are shaped into acreative thought and then put
into reality one day.
Can you talk a little bit?
I mean, I know you can't talkabout the secret insides of how
things work, but what could youshare with our audience about
(04:29):
why the art of creativity andideas is so exciting?
Husnal Shah (04:34):
So I think Funko is the ultimate expression of
fandom, right?
And so what drives creativitywithin Funko is our fans across
the globe.
Whether they are into anime ormusic or, you know,
entertainment, movies, films,gaming, we create something for
everyone out there.
And so I feel that is thesecret source of Funko because
(04:56):
there's so much content outthere.
For us to pick and choose theright type of content to really
bring to life means that thatcharacter and or personality or
story needs to have culturalrelevance because we are a pop
culture company, right?
And have a fan following.
So that is what is exciting andthe secret source of how Funko
makes products and our belief inhow products come to life.
George M. Davison (05:18):
And you have a couple different ways to do
it.
Like you can custom up your ownpop, but you also decide on
certain pops that you want tobring to market and mass
produce, right?
Right.
Correct.
So how does how do you make adecision when it like when is it
time to mass produce a pop?
Husnal Shah (05:37):
So I look at it in two ways.
One is when you when you cancustomize or personalize a pop
for yourself.
So we came up with this productline, which was in a couple of
years ago.
We were hearing from our fansthat they want to be part of the
story.
They obviously want to collectfamous people and display them
on their shelves, but they alsowant to be part of the story.
So we came up with Pop Yourselfas a product line that launched
(05:58):
two years ago.
And it's done so well for us,where a collector can actually
go and pop themselves via oure-comm channels and create
one-of-one bespoke versions ofthemselves to their interests as
well as their likeness.
And then the next iteration ofit is to your point, how do we
mass-produce something?
So, mass-producing something,we we really have three C's we
(06:18):
go by culture, creativity, aswell as commerce, right?
So if that format or that genrefits in the three C's, it will
be mass-produced.
So, for example, because we area pop culture company, cultural
relevance really matters to us.
It means that that figure has acultural impact and is relevant
today or was relevant orsomebody's reliving the
(06:41):
nostalgic story from the past.
And so that is important.
And then every figure we creategrows through a creative lens
in that we have to ensure thatwe're bringing the good figure's
most iconic moment or story orpersonality to life in a
tangible form.
I see.
So creativity is key.
And then commercials.
Obviously, it has to, you know,be a brand deposit to the
(07:05):
company or bring in revenue.
So those are the three threeC's that we filter everything,
every decision through to ensurethat we can mass produce.
George M. Davison (07:13):
It's wonderful.
So you've you've basically alsoby studying your audience and
trying to understand thatthey're well, they want to be
involved with with yourcreations, right?
Right.
So when they're when they popthemselves, it helps them to I
guess that's like a trend rightnow in in online, too.
Husnal Shah (07:32):
It's it's very gifting as well.
So either you are able to popyourself and display yourself,
or it's we've noticed that ourcustomers and our fans are
really doing it from a giftinglens, so to commemorate a
birthday or or a wedding or ananniversary graduation or
seasonal for Valentine's orHalloween or the holidays as
(07:53):
gifts for their loved ones ortheir friends and families.
So there's one aspect wherethey'll pop themselves, but
another they're popping theirloved one in their favorite
team's jersey.
Or or or, you know, because wehave those licensing
partnerships too within PopYourself.
If you're a Harry Potter fan,you can pop yourself as a Harry
Potter character and give it asa gift to a friend.
So we have all of that.
(08:13):
So the future ofpersonalization is massive.
And I can't tell youeverything, but I can tell you
we have something brewing in thepipeline for next year, which
we'll be announcing soon in Q2.
George M. Davison (08:24):
Ah, well, can you give us even a little hint?
Husnal Shah (08:29):
Sorry.
How do I pick it up from there?
George M. Davison (08:41):
Okay, um, let's see here.
So what do you see as some ofthe bigger challenges?
As Funco is leapfrogging past abillion units sold.
Where do you see the futuregoing?
Husnal Shah (08:53):
From a challenge standpoint, there is this
twofold.
One is just the globalvolatility in the supply chain
and the disruptions caused,either due to the pandemic as we
just had COVID or due to, youknow, uh geopolitical reasons.
Funco has a sourcing team thathas really diversified our
source country of distributionsuch that we are in more than
(09:16):
one country than across Asia toreally optimize our supply chain
and really position our productsuch that such disruptions
don't cause us issues.
So we've made the supply chaina lot more resilient than what
it what it was.
So we've taken care of thatissue.
On the other hand, you we dohave new new consumer segments
(09:38):
that continue to come into ourspace.
How do we attract that audienceinto the fun covers?
We call it the fun covers.
Yes.
Right?
And so coming up with the newnewest innovations, with the new
product lines, you know, reallythinking through expansion uh
objectives is what we are into.
And that all of this is reallygoing to help mitigate the risks
(09:59):
and the challenges that we seein the future.
George M. Davison (10:01):
That makes sense.
So as a chief product officer,you're looking at everything
from raw material supplies tologistics to making sure that
whatever's getting popped, youcan supply the marketplace at
all times, right?
Husnal Shah (10:15):
Correct.
So that's one aspect.
So literally within the productumbrella, we have a creative
design and development sourcing,uh logistics, merchandising,
product strategy sits withinproduct.
So it's anything from themoment you can dream of a
product to materializing it andshipping it to our end customer,
is the product team.
George M. Davison (10:35):
I see.
Husnal Shah (10:35):
So there's 12 different functions that sit
within the team.
George M. Davison (10:38):
When you look at them, you see like, oh,
these toys are so much fun, butthere's really a lot going on by
the team.
Husnal Shah (10:43):
Oh, there's a lot going on.
I'm not like Tom Hanks frombig.
George M. Davison (10:48):
Right, right.
Husnal Shah (10:49):
There's a lot going on behind the scenes.
It is a challengingenvironment, and but it's a lot
of fun as well.
And it's very fulfilling.
George M. Davison (10:56):
So talk to us a little bit about the journey
of how an idea comes to life inyour company and then eventually
gets prototyped and then itgoes to a committee where
they're deciding does it meetthese three C's.
Yeah.
Can you talk to us a little bitabout the journey?
Husnal Shah (11:13):
Yeah, so we have a thing that's called the
incubation lab, right?
Where our creative teams gettogether and they are
spitballing and brainstormingblue sky ideas, right?
That's one aspect ofcreativity.
And they come up with the bestproducts.
And like I said, we are limitedby time and our own bandwidth
to really bring everything tolife.
Yes.
But that's one aspect of it.
And the other aspect is wehave, you know, tested and
(11:36):
really oiled the machine ofinnovation all the way through
to commercialization.
And it's not a linear process,it's a literally a loop that
that we continuously getfeedback from our sales teams,
our marketing teams, sociallistening, what our fans are
talking about, you know, what'strending out there from our
licenses and the space we wantto be in, right?
That information is taken anditerated upon, as well as the
(12:00):
blue sky ideation that I justtalked about earlier.
From there comes out the bestof kind products, right?
Whether it's IPs that we wantto be in, it's genres we want to
be in, it's it's basicallyproduct lines we want to bring
to market.
So once these ideas are alittle more solidified and baked
via the incubation lab, there'sa pitch that occurs.
It's called the creativeshowcase.
(12:21):
Okay.
And it's really thought throughbecause it's not just blue sky.
We obviously we want to bringproducts to market that'll
actually be commercial in themarket and not just great
products.
The ideas are great, right?
But that's only 10% of thebattle one.
Right, right.
Once these ideas are pitched toour sales teams and our buyers
globally, they form the part ofthe assortment.
(12:42):
And then we start to developthese ideas and really do go
into sampling and and you know,3D printing, et cetera, with our
third-party factory base aswell as our licenses.
And then we come to a placewhere we agree on the final
model, which then goes intotooling and then into production
and then out.
George M. Davison (12:59):
Sounds like a uh Yeah, I'm very familiar with
research and development.
That sounds like an ecosystem,an innovation ecosystem, right?
100%.
So you're developing thatconcept to a point where you
could pitch it to your salesdepartment to figure out whether
or not because if you don't getif you don't get in alignment
with your sales department,you're not going to be able to.
Husnal Shah (13:19):
They have to buy in as much as you bought in.
George M. Davison (13:21):
Yes.
Husnal Shah (13:21):
To really be able to.
And then I also believe there'sa there's an element to a
product where a product is aproduct.
Until you don't tell the storyof the product and then you're
not marketing it right, it's notgoing anywhere.
So with the sales and themarketing teams and our branding
teams, we really ensure when Italk about commercialization,
the process of innovation tocommercialization, it starts
(13:43):
together.
Yes.
So while you're formulating aproduct, you're also this part
of the house is coming in andtalking about how we will be
market it, what is the viralitygoing to look like of this
product.
And then there's a there's aback and forth and it
reiteration and still we land onthe final look and feel of the
product.
George M. Davison (13:59):
Right.
That makes sense.
So let's project into thefuture, into tomorrow's world.
And tell us what you seehappening in the you can relate
it to how where Funko is goingin the future or you know how it
ties to the toy industry as awhole.
Husnal Shah (14:15):
Yeah.
George M. Davison (14:16):
Can you can you walk us through that future,
what you see happening?
Husnal Shah (14:19):
Yeah.
So the toy industry is evolvingmassively, right?
We also know that kids arefalling out of toys mu at a much
younger age and going into, youknow, gaming.
They are on their iPads and onsocial media.
YouTube is a big influx ofpreteens and and gen alpha,
right?
So we study all these trendsthat are happening, whether it's
(14:42):
generational or it'scontent-based, or a new fandom,
the rise of a new fandom and afall of another fandom.
So the team, our merchandisingteam, is really in tune watching
these trends.
Funco's future lies in reallybeing able to innovate and
amplify our digital experiences,right?
Using AR tools and creativetools, as well as expanding
(15:06):
globally in in markets where popculture and the pop market is
uh expanding.
Philippines is one of thosemarkets where we just opened a
licensing store and we continueto expand our licensing store
footprints across the globe.
So that's where I see thefuture for Funco.
While innovation is key andproduct ideation is key,
(15:27):
expansion happens throughdigital experience, geo
expansion, as well as gettinginto an AR space and really
being able to talk to our fansloud and clear.
George M. Davison (15:38):
That's wonderful.
It looks like you your team'sreally thinking it through.
Husnal Shah (15:42):
They absolutely are.
We have best in class people,experts in the field, and so I'm
really proud of the team.
For example, you talked aboutcreativity.
The way we set up our teams isthe artist that works on anime,
for example, knows the in andout of anime.
He is into the stories, intothe characters, knows what's
coming out in the future.
So while he's developing andcreating those concepts, he can
(16:05):
really tell the characteremotionally as well as the
personalities coming to life inthe character.
And then it flows throughwithin the entire team.
The merchandiser that is doingmerchandising it for anime knows
everything about anime, and sodoes the sourcing person as well
as the product developer.
So the whole team is a unitthat breeds and lives anime.
And then you're getting thebest product out there.
(16:27):
So all teams, we have teamsbuilt by fandom, and that's how
they operate.
George M. Davison (16:32):
Yes, wonderful.
So with the future ofeverything, and just getting a
little more background.
So have you popped yourselfyet?
Husnal Shah (16:38):
Multiple times.
Yeah.
And I plan to do it over andover again.
And I'll give one to you too,George.
George M. Davison (16:44):
Oh, thank you.
It's it is fun, isn't it?
Husnal Shah (16:46):
Yes, it is.
It's a lot of fun.
And I encourage everyone overhere to go pop themselves.
George M. Davison (16:51):
Husnall, thanks for being with us today.
Thank you so much for havingme.
Well, everybody, that's anotheredition of Tomorrow's World
Today.
Bye now.
Thank you for listening to thisepisode of Tomorrow's World
Today podcast.
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