Funko Toys has been one of the most recognizable names in licensed collectibles for more than a decade. Many retailers built entire categories around Funko Pops, and collectors once viewed every new figure as an event. The landscape looks very different today, and the company is now facing problems that are significant enough to create real openings for smaller, fresher collectible brands. This shift gives retailers a chance to introduce something new and exciting while the market is actively searching for alternatives.
Funko’s Current Situation
Recent reports show that Funko is carrying roughly 241 million dollars in debt. The company publicly stated that there is “substantial doubt” about its ability to continue operating for the next twelve months, which is a rare and serious signal. Sales have also declined by an estimated fourteen percent, and the company continues to struggle with overproduction and pricing decisions that have not aligned with collector demand.
Coverage from multiple sources also points to Funko’s overwhelming catalogue size. The brand has created more than twenty five thousand different Pop models, which is an enormous amount of product for any collector base to absorb. The sheer number of licenses and characters has created fatigue. Fans are tired, and it has become increasingly difficult for Funko to offer anything that feels new or innovative. When every possible entertainment property, athlete, musician, historical figure and brand already exists in Pop form, the excitement disappears. This saturation is one of the core reasons Funko is losing momentum.
What This Means for Retailers
A major legacy brand that is overextended often creates opportunity for smaller businesses. When a dominant company floods the market with product and begins losing traction, customer attention shifts toward options that feel fresh or more curated. Retailers who can identify these moments tend to capture more sales than those who wait for the old trend to recover.
Collectors are actively looking for something different. They want items that feel unique, have personality, and do not blend into the massive catalogue they already own. This is the ideal time for retailers to explore alternatives that give customers a reason to get excited again.
Why Tubbz Ducks Fit This Moment
Tubbz ducks offer something that stands apart from the crowded figure market. The line is creative, playful and instantly recognizable. It feels different from the standard vinyl figure format, and it brings real personality into every design. Retailers who introduce Tubbz can offer their customers a collectible that does not feel repetitive or stale.
Because the product line is more intentional and less overwhelming than Funko’s enormous catalogue, collectors tend to stay engaged. It also allows retailers to position their store as a place where shoppers can discover new and interesting items instead of revisiting the same patterns they see everywhere else.
How Retailers Can Talk About This Shift
You can explain that the larger collectible figure market is entering a new phase. Customers are tired of seeing the same style of product, and the biggest brand in the category is showing signs of strain. Introducing something fresh and imaginative enforces to your customers that you understand the direction the industry is moving.
You can also highlight that Tubbz offers strong licensing, vibrant character design and a distinctive format that immediately separates it from the chaotic Funko catalogue. When a major brand becomes overexposed, it frees up space for new leaders to emerge. Retailers who adopt those new leaders early often see the greatest benefit.
Final Thoughts
The market for licensed merchandise is not shrinking. Consumer interest in pop culture collectibles remains incredibly strong. The challenge comes from saturation and fatigue, especially when a single brand produces more product than collectors can absorb. Funko’s difficulties are a clear sign that the market is ready for fresh ideas. Brands like Tubbz are positioned to take advantage of this moment, and Merch Showroom is here to help retailers bring those opportunities to their customers.
