Singapore's own 'Toy Story' rakes in big bucks with small figures

Their attention to details has also won them the rave reviews from toy collectors. Fans of superheroes from pop culture franchises like DC and Marvel Comics are paying top dollar for these statuettes, with some parting an eye-watering $1,500 for each figurine.

For example, the studio’s Hulkbuster statuette — modelled after a character featured in the 2015 blockbuster Avengers: Age Of Ultron — sold 999 pieces in a single day when it was released in 2017. Each statuette reportedly cost $2,500.

It seems that not even a global pandemic can slow sales down. XM Studios reportedly made $7.6 million in sales in 2019. While the company’s FY2020 figures are yet to be announced, last year’s sales are on track to triple that number.

Now armed with 10 IP licences, XM Studios is considered a key partner for Disney and Warner Brothers, putting Singapore on the map as a hub for collectible figurines, alongside toy making giants in the US and Japan.

The collecting game

According to co-founder and CEO Ben Ang, statue collecting started in the 1990s with the US and Japan “as the main manufacturers”. However, never has the design and production of such collectables taken place in “this part of the world”, Ang says in a recent interview with The Edge Singapore.

“When we started producing in Singapore, collectors in Southeast Asia found it easier to buy things from us than from the US. There is a very big consumer base here,” claims the 46-year-old.

But creating original figurines is a whole other ball game. Ang says bringing a novel concept to life takes between six to nine months — from sketching new designs to creating 3D models. It also takes many months to perfect each figurine.

The studio also broke from tradition and brought storytelling to its collectables. Says Ang: “In the old days, statues basically had a standard pose. When we came into this industry, I looked at how I portray our characters to the collectors, because we are selling a piece of memory.”

Collectors prize the figures produced by XM Studios because they are highly customisable; these statuettes come with two different heads, for example, or three different pairs of arms, giving collectors various iterations of the same figurine. “In this way, you have this variability and interaction between the collectors and figurines. When they start to communicate with the pieces, they learn. That is why collectors like our statues,” explains Ang.

With the legal rights granted, XM Studios also took creative licence with the heroes by adapting their costumes for the modern world. “In the old days, superheroes only wore spandex, people drew very simple designs. Now, buckles and belts make more sense for the modern day,” he adds.

Fan reactions have been overwhelmingly positive. One of the studio’s earlier designs, the Batman Samurai, sold out its entire run of 999 pieces in just two and a half minutes when it was released in 2015. This statuette was the first to be released in the Batman Samurai Line, a creative collaboration between Warner Bros. Consumer Products and XM Studios, setting the character in feudal Japan. This was even before the concept was explored further in the critically-acclaimed 2018 Japanese animation feature Batman Ninja.

Ang is evidently proud that their creations have inspired copycats. “If we come out with a certain pose, we’ll see a few other companies doing similar things in the next season,” he says with a laugh. “We are pioneers. Whatever we do, people will follow.”

Quality control

The company was aware its re-imagined designs would command top dollar among collectors. Being savvy, they even priced the studio’s originals up to three times from its competitors. Ang defended the move, adding: “Some were asking why our prices are so expensive, saying, “You’re a new brand; no one knows about you.” I said we are here to deliver top quality products and I believe collectors will be willing to pay.”

But the high prices come with an attention to detail. To ensure quality is consistent at all parts of production, XM Studios products undergo three rounds of quality checks. These checks are conducted at the factory where they are produced and at the company’s 40,000 sq ft facility in China's Huizhou, which is staffed by some 30 quality control experts.

Models shipped to Singapore are subjected to stringent checks by the XM Studio team upon arrival here.

With such strict controls in place, Ang says the defect rate has been brought down to just 0.5%. “If there is an issue, we will replace the item. We want to make sure that collectors — who have put so much money into this — don’t have to worry about quality issues,” he adds.

Each item also comes with its own unique, 16-digit code. By registering the code on XM Studios’ website, each piece can be verified for its authenticity. “You can see how many people have [the same item] in your country, so when you want to sell, you can tell the buyers,” explains Ang.

The attention to detail goes beyond the figurines themselves. For example, each statuette’s packaging box costs US$19 ($25.35), featuring Velcro straps to hold moving parts in place during delivery. With limited supply and digital certification, some of the studio’s highly collectible creations fetch big money on the resale market. According to Ang, this has increased the value of 70% of the company’s items to more than two to five times their original price, he adds.

“During Covid-19, when my collectors needed money, they sold some of the pieces and they got back more than they paid. Some told me, ‘Thank you, XM. When times are better, I will buy more [collectables] from you.’”

Not just toys

Just who are these collectors shelling out big money on these statuettes? Ang says 80% to 90% of them are male. However, following the brand’s expansion into more markets, the number of female collectors has also increased over the years.

Ultimately, the co-founder hopes to grow this segment by offering different tiers of figurines for all members of the family. “Imagine: a father can buy a statue, the mum can buy a designer toy and the kids can enjoy popular, mass-produced toys,” Ang adds.

As the company expands, he is also looking to take the opposite route by creating miniatures. “Collectors always say there’s no space at home to keep their many statues,” says Ang.

With this in mind, the studio is developing a miniature scale model of Batman’s lair the Batcave, complete with 10 different rooms.

With a worldwide licence by Warner Bros., Ang believes the miniature scale Batcave will be a hit among fans.

Still, XM Studios is not just another toy company. “My goal is to bring IPs into collectors’ lives. Things that you use, eat and wear can all be IP-related, that’s where my direction is,” he says.

These goals will soon take shape as XM Studios launches an “experiential concept store”, with a gallery of original pieces and an adjoining cafe space, says Ang. He declined to give more details but adds that there are also plans for international expansion, with Ang gunning for 20 stores worldwide in the next three to five years.

There are also plans for a lifestyle line offering merchandise like apparel, pins and bags and an events management company. XM Studios also collaborates with smaller companies to come up with collectables for its existing licenses. “When small studios want to pick up licences, we can work with them to come up with their own line,” he adds. XM Studios is working with a company in the Philippines for one such collaboration.

Ang also hopes XM Studios can be a torch-bearer for design studios in Singapore and the region. “I would say, the more [brands], the merrier. If there are only one or two [brands], I think the industry will die off,” he claims. “We showed a lot of small studios what is possible. I believe in sharing what we know.”