1

Market Research:

Topps Company Inc.’s Trading Cards

8/27/2023
 2

Table of Contents

1. Industrial Analysis:....................................................................................................................2

2. Company.....................................................................................................................................3

2.1. Overview..............................................................................................................................3

2.2. Products and Services.........................................................................................................3

2.3. Financial Overview.............................................................................................................4

3. Market Overview:......................................................................................................................7

3.1. Market Size (TAM), SAM, and SOM:..............................................................................7

3.2. Market Growth:..................................................................................................................8

3.3. Market Drivers:..................................................................................................................9

3.4. Market Challenges:..........................................................................................................10

4. Demographics and Consumer Analysis:................................................................................10

5. Competitor Analysis:...........................................................................................................11

6. SWOT Analysis:...................................................................................................................12

7. Marketing Trends and Opportunities................................................................................13

 3

1. Industrial Analysis:

The Topps Company Inc, renowned for its trading cards, has established itself as a

prominent player in the collectible card industry. To gain a comprehensive understanding of the

market, it is important to conduct a market research analysis. This market analysis encompasses

an overview of the market, market size, market growth, market drivers, market challenges,

consumer analysis, competitor analysis, SWOT analysis, and any other pertinent information.

2. Company

2.1. Overview
1
Headquartered in United States and based in New York City, Topps Company Inc. is

widely known for manufacture of trading cards and collectibles. Topps is among the major

players in the industry for leading in production of non-sports cards, which complements their

massive contribution in production of baseball and other sports trading cards. Topps tracks its

foundational roots back to an American company named Leaf Tobacco that was founded in

18902. Later in 1930, Topps emerged Bazooka bubble gum as one of the most successful

products. This product was packaged together with trading cards that were featured with one of

most popular and big TV star, William Boyd.

2.2. Products and Services

Topps launched baseball trading cards as their primary product. Since then, Topps geared

their focus towards the art of making non-sports trading cards with pop culture inspiration

themes. As the focus of this market research gears towards non-sports trading cards for movies,

1
https://www.dnb.com/business-directory/company-
profiles.the_topps_company_inc.ee7955d1ad34aba7e8df3fc803a7827d.html
2
https://en.wikipedia.org/wiki/Topps#Disney_Channel
 4

films, and TV shows. As such, 3Topps have been featuring and working together with Disney

channel, and multiple entertainment forums as the primary producers of trading cards. The main

products for the company include;

Trading Cards Chewing Gum Candy

2.3. Financial Overview

Financials 52 weeks 52 weeks 52 weeks 53 weeks 52 weeks

ended 29 ended 28 ended 26 ended 1 ended 1

September September September October October

2018 2019 2020 2021 2022

Revenue4 £m 216.9 219.2 192.8 228 247.2

Cost of £m -84.5 -84.3 -80 -97.3 -111.8

sales

Gross £m 132.4 135 112.8 130.7 135.4

profit

Operating £m -118.7 -121.6 -118.8 -112.4 -120.6

expenses

3
https://www.dnb.com/business-directory/company-
profiles.the_topps_company_inc.ee7955d1ad34aba7e8df3fc803a7827d.html
4
http://www.toppstilesplc.com/financial-summary
 5

Operating £m 13.7 13.3 -6 18.4 14.8

profit/(loss

Exceptiona £m 0 0 0 0 0

l items

Net £m -1.1 -0.9 -3.8 -4.1 -3.9

interest

Profit £m 12.7 12.5 -9.8 14.3 10.9

before

tax/(loss)

Tax £m -3 -2.4 1.8 -3.4 -1.8

Profit/ £m 9.7 10.1 -8 10.9 9.2

(loss) after

tax

Per Share 52 weeks 52 weeks 52 weeks 53 weeks 52 weeks

Data ended 29 ended 28 ended 26 ended 1 ended 1

September September September October October

2018 2019 2020 2021 2022

5
Dividend p 3.4 3.4 Nil 3.1 3.6

per share

5
https://www.globenewswire.com/en/news-release/2021/06/22/2250843/0/en/The-Topps-Company-Announces-
First-Quarter-2021-Results.html
 6

Basic p 5 5.18 -4.11 5.59 4.6

earnings

per share

Other Data 52 weeks 52 weeks 52 weeks 53 weeks 52 weeks

ended 29 ended 28 ended 26 ended 1 ended 1

September September September October October

2018 2019 2020 2021 2022

Average 2,114 2,089 2,001 1,847 1,751

number of

employees

Market cap £m 123.6 130.8 101 129 75.4

as B/S date

Investment 52 weeks 52 weeks 52 weeks 53 weeks 52 weeks

Ratios ended 29 ended 28 ended 26 ended 1 ended 1

September September September October October

2018 2019 2020 2021 2022

Operating % 6.3 6.1 -3.1 8.1 6

margin
 7

Dividend per6 % 0 0 n/a n/a 16.1

share growth

Basic % -28.4 3.6 n/a n/a -15.9

earnings per

share growth

3. Market Overview:

The trading card industry encompasses the sale and distribution of collectible cards,

including sports cards, entertainment cards, and other limited edition or specialized cards. Topps

Company Inc primarily operates in the sports trading card segment, with a focus on professional

sports leagues such as Major League Baseball (MLB), National Football League (NFL), and

National Basketball Association (NBA). The company has earned a reputation for producing

high-quality cards that cater to the demand of collectors and fans alike.

3.1. Market Size (TAM), SAM, and SOM:

I. The Total Addressable Market (TAM) for trading cards is extensive, given the immense

popularity of sports and the widespread interest in collecting memorabilia. 7In 2020, the

trading card market was valued at approximately $6.18 billion globally, with a compound

annual growth rate (CAGR) of 3.7% from 2021 to 2028.

6
http://www.toppstilesplc.com/financial-summary
7
http://www.toppstilesplc.com/sites/default/files/2023-05/topps-tiles-investor-presentation-hy23.pdf
 8

TAM Growth Rate

7
Market Value (in Billion Dollar)

0
2020 2021 20222 2023 2024

Series 1

II. The Serviceable Addressable Market (SAM) for Topps Company Inc would include the

specific segment of the trading card industry that the company targets, primarily

professional sports cards.

III. Estimating the company’s Share of Market (SOM) requires an analysis of its sales and

market share within this specific segment. Analyzing the current market players in the

movie and television trading card industry is important to gain an understanding of the

competitive landscape8. This includes studying both established companies and

newcomers, observing their market share, product offerings, and pricing strategies.

3.2. Market Growth:

9
The trading card market has experienced steady growth in recent years, primarily driven

by increased interest in sports and collectibles. The emergence of online marketplaces and e-

commerce platforms has facilitated easier access to trading cards, broadening the customer base.

8
http://www.toppstilesplc.com/sites/default/files/2023-05/topps-tiles-investor-presentation-hy23.pdf
9
http://www.toppstilesplc.com/sites/default/files/2023-05/topps-tiles-investor-presentation-hy23.pdf
 9

Market growth is further fueled by new collectors entering the market and the rise of global

sports fandom.

3.3. Market Drivers:

Several factors contribute to the growth of the trading card market.

 First, the emotional connection that fans develop with their favorite teams and athletes

drives the desire to collect memorabilia, including trading cards.

 Secondly, the scarcity and limited availability of certain cards create a sense of

exclusivity and value, driving demand.

 10

 Lastly, the emergence of digital collectibles and block chain technology in the trading

card industry has introduced new opportunities for growth, attracting tech-savvy

collectors.

3.4. Market Challenges:

While the trading card industry presents immense potential, it also faces various challenges

including;

 One significant challenge is counterfeit cards flooding the market, compromising the trust

of collectors10.

 Unpredictable fluctuations in the sports market, such as player performance or scandals,

can impact the overall demand for trading cards.

 Increased competition from other trading card manufacturers and alternative forms of

collectibles pose a challenge to Topps Company Inc.

4. Demographics and Consumer Analysis:

Understanding consumer preferences, buying behavior, and demographics is crucial for market

success. Trading card collectors can be categorized into two primary segments:

1. Casual Collectors:

Casual collectors often purchase cards as a hobby or to support their favorite team.

2. Avid Collectors:

Avid collectors demonstrate a deep passion for collecting and may invest significant time and

money into their collections.

Demographic analysis is crucial to ascertain the SAM for movie and television trading

cards. This should include factors such as age, gender, location, and interests. Collaboration with

10
http://www.toppstilesplc.com/sites/default/files/2023-05/topps-tiles-investor-presentation-hy23.pdf
 11

licensing companies and entertainment studios can also aid in identifying the target audience, as

they possess valuable insights into fan demographics and interests

5. Competitor Analysis:

Topps Company Inc faces competition from various players in the trading card industry,

including;

Key Competitors

Topps Company Inc. Panini America Upper Deck Leaf Trading Cards

 Panini America

 Upper Deck

 Leaf Trading Cards

Each competitor has its unique selling proposition, target market, and licensing

agreements with professional sports leagues. Monitoring competitor strategies and market

positioning is essential to identify areas of opportunity and establish a competitive advantage.

Other Major competitors in the industry of trading cards manufacturer are analyzed in the table
 12

below with comparison to the Topps Company Inc. in terms demographics, location, foundation

year, average revenue, gross profits, and net income11.

Topps Abastible M&G Stationery Briscoe Group Fine Hygienic Holding

Column1
Founding Date 1938 1956 1996 2004 1952
Type Subsidiary Subsidiary Public Public Private
Tags Retailconsumer goods Retailconsumer goods Retailconsumer goods Retailconsumer goods Retailconsumer goods
Locations New York, US HQ Santiago, CL HQ Shanghai, CN HQ Auckland, NZ HQ Amman, JO HQ
Employees 5125% increase 1,5404% increase 5,5741% increase 2,000 1,616

Twitter followers 236.8 k 5 N/A N/A N/A

Employee Rating 3.5 4.5 N/A 3.5 3.2
Financial
Revenue (est.) N/A N/A ¥19.9b (FY, 2022) $785.9m (FY, 2023) N/A
Cost of goods N/A N/A ¥16.1b (FY, 2022) $405.6m (FY, 2023) N/A
Gross profit N/A N/A ¥3.8b (FY, 2022) $380.6m (FY, 2023) N/A
Net income N/A N/A ¥1.4b (FY, 2022) $88.4m (FY, 2023) N/A

6. SWOT Analysis:

Conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is imperative

to assess Topps Company Inc.’s position in the market.

11
https://www.globenewswire.com/en/news-release/2021/06/22/2250843/0/en/The-Topps-Company-Announces-
First-Quarter-2021-Results.html
 13

Strengths could include its long-standing reputation, strong licensing

partnerships, and exceptional product quality.

Weaknesses may revolve around potential counterfeit issues or limited

market diversification.

Opportunities may arise from the growing popularity of e-commerce

and digital collectibles, while threats may come from increased
competition or economic downturns.

7. Marketing Trends and Opportunities

Conducting a market research analysis on Topps Company Inc and the trading card industry

reveals significant growth potential along with specific challenges and opportunities.

Understanding the market overview, size, growth, drivers, challenges, consumers, competitors,

and conducting a SWOT analysis will equip the company to make informed marketing strategies

and gain a competitive edge in this dynamic industry