Four Ranges:
Serving the Kidult Consumer in 2027.

I just wanted to share some thoughts following on from our meetings recently. The launch has gone well and we are genuinely excited about where this is heading. What follows is not a negotiating position, it is our honest read of what the kidult consumer market requires, and how we think we can best serve it together in 2027. If we stay consumer-first, we won't go far wrong.

Consumers dictate the cadence.

The kidult and designer toy market has been shaped by brands, Pop Mart most visibly, that operate on a high-frequency drop culture. Consumers in this space are conditioned to expect regular newness. That does not mean Momiji needs to match Pop Mart's near-weekly cadence; our brand is crafted and narrative-led, and that is a deliberate point of difference. But it does mean that the market sets a floor on cadence.

Industry data for 2025 shows that growth in this category is driven specifically by collectibles and pop-culture-linked products, with adults and teens now a major share of volume. The consistent finding across trade commentary is that brands in this space need to maintain a perception of regular newness, not as a nice-to-have, but as a baseline expectation.

Three ranges creates a gap. Four closes it.

Behind the scenes we are building a marketing stack using Klaviyo, Meta, TikTok, ManyChat, Gorgias, platforms designed to amplify launch moments. Each new range creates a coordinated burst across channels that drives traffic, conversion, and community engagement together. This architecture works because it has something to point at.

A gap of four to five months without a new range is not a neutral period. It is a window in which we are spending to maintain consumer attention that has nothing to convert against and a period in which the brand signal weakens through absence.

Maintaining Continuity

We are both agreed that decisions should be based on real data. The first meaningful sell-through numbers will not be available until end of July 2026 at the earliest. That is the right moment to review cadence for 2028 with confidence.

The question is what we do between now and then. We think the answer is to hold the plan that is already in place. Four ranges is what has been agreed. Changing it before any evidence exists is the riskier move, not the safer one. If the data in July points to a different approach for 2028, we will have every reason to make that call together at that point.

The cost curve bends downward over time.

We understand that tooling cost is a genuine consideration, particularly while volumes are still building. We wanted to explore this with you.

• Volume economics: tooling cost as a higher proportion of revenue is a launch-phase characteristic. As order / reorder volumes grow into an established customer base, the same tooling investment is spread across significantly higher units. We are at the beginning of that curve. Reducing range count now, at the moment volumes are about to scale, removes cost at precisely the wrong point.
• Shared components: we are already exploring shared moulded parts across some products. As that parts library grows over time, this will make a modest further contribution to reducing incremental tooling cost per range.

Our proposal is four ranges in 2027. The tooling economics improve with each range we produce, and the global door count set out below shows the market opportunity that justifies the investment.

The wholesale opportunity, doors, markets and what the numbers indicate.

From launch in 2026, Tomy is opening accounts across US, UK, EU and ROW. At launch in 2026 we start from zero. A year later, retailers in those doors will already know the product, have sell-through data, and be planning their next order. That is a meaningfully higher base from which to build 2027. Year 1 in the model below represents the launch year 2026. Years 2, 3 and 4 compound from there as new accounts open on top.

Set each market's Year 1 door count, the sell-through velocity, and the annual growth rate. Everything else follows from the arithmetic.

We are very open to working through the detail of both of these together.

Consumer first, and the rest follows.