Core Viewpoint - The closure of Madame Tussauds museums in China and other countries highlights the challenges faced by this iconic brand, which is struggling to adapt to changing consumer preferences and high operational costs [1][5][17]. Group 1: Closure of Madame Tussauds Museums - The Beijing Madame Tussauds museum closed on September 30, marking the second closure in China this year, following the Chongqing museum's closure four months earlier [1][5]. - The operational costs for the five museums in China exceed 630 million yuan, with the Beijing location alone costing over 140 million yuan [2][14]. - The closures are part of a broader trend, with Madame Tussauds locations in San Francisco and Turkey also shutting down due to insufficient visitor numbers [5][17]. Group 2: Financial Performance and Strategic Shift - Merlin Entertainment reported a pre-tax loss of 492 million pounds (approximately 4.92 billion yuan) for 2024, with a significant decline in brand value attributed to the Madame Tussauds brand [17][19]. - The company is shifting focus from the high-cost Madame Tussauds to Lego Land, indicating a strategic pivot in response to market pressures [17][19]. - The operational model of Madame Tussauds is criticized for its high fixed costs and low repeat visit rates, making it difficult to achieve economies of scale [6][12]. Group 3: Changing Consumer Preferences - The appeal of static wax figures has diminished among younger consumers, who prefer interactive and immersive experiences offered by new entertainment options [11][12][16]. - The rise of AI and virtual experiences has further eroded the uniqueness of wax museums, leading to a decline in visitor interest [11][12][16]. - The shift in consumer behavior reflects a broader trend in the entertainment industry, where experiential and interactive offerings are increasingly favored over traditional attractions [21][22]. Group 4: Future Directions and Industry Trends - The future of Madame Tussauds may involve transitioning to lighter asset models, such as digital exhibitions, to maintain brand relevance [19][21]. - The industry is moving towards creating strong interactive and social experiences, rather than relying solely on celebrity culture [21][22]. - Merlin Entertainment acknowledges the need to leverage existing assets and invest in technology and talent to enhance customer value and drive growth [21][22].

Core Insights - The closure of the Madame Tussauds wax museum in Beijing marks the second closure in China this year, following the Chongqing location, indicating a broader trend of declining interest in traditional attractions [1][2][4] - Merlin Entertainment, the parent company, is shifting focus from high-cost wax museums to more profitable ventures like Legoland, as it faces significant financial losses [2][20][22] Financial Performance - Merlin Entertainment reported a pre-tax loss of £492 million (approximately ¥4.72 billion) for 2024, a 130% increase in losses compared to 2023 [20] - The company’s revenue decreased by 3.2% to £2.057 billion, with a noted decline in brand value for Madame Tussauds amounting to £163 million [20] Operational Challenges - The operational costs for the five Madame Tussauds locations in China exceed ¥630 million, with the Beijing location alone costing over ¥140 million [2][14] - High production costs for wax figures, approximately £150,000 (around ¥1.5 million) each, contribute to the financial strain, making it difficult to achieve economies of scale [5][14] Market Trends - The decline in visitor numbers is attributed to changing consumer preferences, particularly among younger audiences who find static wax figures less appealing compared to interactive experiences offered by emerging entertainment options like VR and AI [12][13][17] - The shift in consumer behavior reflects a broader trend where traditional attractions struggle to compete with more engaging and immersive entertainment experiences [22][24] Strategic Shifts - Merlin Entertainment is prioritizing investments in Legoland and other attractions that promise higher returns, indicating a strategic pivot away from the wax museum model [18][22] - The company is exploring new formats such as digital exhibitions and lighter asset models to sustain the Madame Tussauds brand, acknowledging the need for innovation in the face of declining interest [22][24]

Core Viewpoint - The closure of the Madame Tussauds wax museum in Beijing on October 1 marks the second closure of a Tussauds location in China within six months, following the closure of the Chongqing museum in May. Currently, only the museums in Hong Kong, Shanghai, and Wuhan remain open in China [2][3]. Background of Madame Tussaud - Madame Tussaud, originally named Marie Grosholtz, was born in 1761 in Strasbourg, France. She learned wax modeling skills from a doctor and wax sculptor named Curtius. At the age of 16, she created her first wax figure of the famous writer Voltaire, gaining recognition [3]. - After marrying engineer François Tussaud, she became known as Madame Tussaud. In 1802, she took her wax figures to London, where she eventually opened the first permanent Madame Tussauds museum in 1836 [4]. Current Challenges - The Madame Tussauds brand has seen a significant decline in profitability, particularly in the Chinese and UK markets, leading to a decrease in brand value [5]. - The museum's appeal has diminished as experiential consumption has become mainstream, with alternatives like concerts, theme parks, and immersive experiences drawing visitors away from static wax figure displays [5][6]. - The high operational costs, including expensive rent in prime locations and the costly maintenance of wax figures, have contributed to the financial struggles of the museums. For instance, the production cost of a high-quality wax figure is approximately 1.5 million RMB [7]. Strategic Response - Merlin Entertainments, the parent company of Madame Tussauds, has been restructuring its business in response to market changes. This includes the closure of the Beijing and Chongqing locations, as well as previous closures in San Francisco and Istanbul [8]. - The company is focusing on expanding its theme park operations, particularly Lego-themed parks, which attract millions of visitors annually. The first Lego park in China opened in Shanghai in July [10].

Core Points - Merlin Entertainment Group announced the permanent closure of the Beijing Madame Tussauds wax museum due to high rent and the expiration of the lease, with plans to focus on LEGO parks in the future [1][2][7] - The closure of the Beijing location follows the recent shutdown of the Chongqing Madame Tussauds, indicating a strategic shift in the company's operations in China [1][5] Lease and Closure Details - The Beijing Madame Tussauds will close permanently on October 1, 2025, as the company decided not to renew the lease after careful consideration [2] - The high rental costs were cited as a significant factor in the decision to close the museum, with plans to relocate most wax figures to other locations in China [2][4] Market Analysis - The operational costs of wax museums are high, including rent, maintenance, and staffing, which makes it challenging to sustain profitability solely through ticket sales [3] - Changing consumer preferences have led to a decline in repeat visits, necessitating a shift towards more immersive and value-driven experiences [3][4] Strategic Adjustments - Merlin Entertainment is planning to upgrade other attractions in China to meet evolving consumer demands, particularly targeting younger audiences and families [4] - The company is also focusing on expanding its LEGO parks in China, viewing this as a key area for future growth [7][8] Financial Performance - Merlin Entertainment reported a revenue of £2.057 billion for 2024, a decrease of 3.2% year-on-year, with a pre-tax loss of £492 million, indicating financial challenges [7] - The company highlighted the decline in brand value for Madame Tussauds in its financial reports, reinforcing the need for strategic realignment [7] Future Prospects - The opening of the Shanghai LEGO park has been successful, attracting a significant number of visitors, although it has faced some operational challenges [8] - The company is optimistic about the potential of LEGO parks to replace the revenue previously generated by Madame Tussauds, although market performance will need to be closely monitored [8]

Core Viewpoint - The closure of the Madame Tussauds wax museum in Beijing, following the closure of the one in Chongqing, highlights the operational challenges faced by Merlin Entertainments in China, primarily due to high rental costs and changing consumer preferences [1][4]. Group 1: Closure Reasons - The Beijing Madame Tussauds wax museum will permanently close on October 1, 2025, due to the expiration of its lease and strategic brand adjustments by Merlin Entertainments [4]. - High rental costs were cited as a significant factor in the decision not to renew the lease for the Beijing location [4][5]. - The closure is part of a broader strategy to reassess and adjust Merlin's operations in China, including the potential relocation of wax figures to other locations [4][11]. Group 2: Market Challenges - The operational costs of wax museums are high, including rent, maintenance, and staffing, making it difficult to sustain profitability solely through ticket sales [5]. - Changing consumer habits have led to a decline in interest in static attractions like wax museums, with a growing preference for immersive and experiential entertainment options [5][10]. Group 3: Strategic Adjustments - Merlin Entertainments plans to upgrade other Madame Tussauds locations in China and shift focus towards LEGO theme parks as part of its strategic realignment [10][13]. - The company reported a decline in revenue, with a 3.2% drop to £20.57 billion and an increase in pre-tax losses to £4.92 billion, indicating financial pressures that necessitate strategic changes [13]. - The opening of the Shanghai LEGO Land in July 2023 has been positively received, suggesting a potential shift in consumer interest towards more interactive and family-oriented attractions [14].

Core Insights - The permanent closure of the Beijing Madame Tussauds wax museum, effective October 1, 2025, has caused significant shockwaves in the domestic cultural tourism industry, attributed to lease expiration and brand strategy adjustments [4] - This marks the second Madame Tussauds location to close in China within six months, following the quiet closure of the Chongqing location in May 2023, highlighting a global trend of retreat in the wax museum sector [6][7] - The decline of Madame Tussauds is indicative of a broader structural shift in the global offline photo-centric experience industry, as consumer preferences evolve [7][10] Industry Trends - The closure of Madame Tussauds locations is not an isolated incident but part of a global trend, with other locations like San Francisco and Istanbul also shutting down due to insufficient visitor numbers and lease expirations [7] - The wax museum's decline reflects a shift in consumer behavior, particularly among younger audiences who now prefer immersive experiences over traditional photo opportunities [10][13] - The once-popular wax museums have become less relevant as they fail to meet the evolving demands for engagement and memorable experiences, leading to a decrease in visitor interest [11][14] Consumer Behavior - Younger consumers are increasingly seeking experiences that allow them to participate and engage, rather than simply taking photos with wax figures, which they find less appealing [10][11] - The content and experience offered by wax museums have not kept pace with changing consumer expectations, resulting in a lack of emotional value and engagement [13][14] - The decline in interest for photo-centric experiences is mirrored in the broader travel photography industry, which has also seen a significant downturn [14][17] Strategic Shifts - Merlin Entertainment, the parent company of Madame Tussauds, is pivoting towards more immersive and interactive projects, such as LEGO parks, to better align with current consumer preferences [17] - The future of cultural tourism attractions will likely depend on their ability to provide participatory experiences that resonate with visitors, moving beyond mere photo opportunities [17][18]

Core Viewpoint - The permanent closure of the Madame Tussauds wax museum in Beijing highlights the challenges faced by traditional wax museum formats in the current market environment, driven by declining visitor interest and changing consumer behavior [1][2][6]. Group 1: Closure Announcement and Visitor Trends - The Beijing Madame Tussauds wax museum will permanently close on October 1, 2025, due to lease expiration and brand strategy adjustments, despite claims from nearby merchants that the lease may actually extend to 2028 [1][4]. - Following the closure announcement, the museum experienced a surge in visitors, with 91 guests observed in just half an hour, equating to a typical day's traffic [1][3]. - The current adult ticket price is 99 yuan, significantly reduced from 200 yuan at the end of 2022, and lower than other locations in Shanghai and Wuhan [1][3]. Group 2: Industry Challenges and Consumer Behavior - The appeal of wax museums, particularly those centered around celebrity photo opportunities, is declining, with limited customer bases and low repeat visitation rates [2][7]. - The economic environment has led to more cautious spending on non-essential cultural experiences, further impacting visitor numbers [2][7]. - The traditional static display model of wax museums is losing competitiveness in an era where interactive and immersive experiences are preferred by younger audiences [6][7]. Group 3: Financial Implications and Brand Value - Merlin Entertainment Group, which operates the Madame Tussauds brand, reported a pre-tax loss of 4.92 billion pounds for 2024, with the brand's value dropping by 1.63 billion pounds, indicating significant financial strain [6][8]. - The closure of the Beijing and Chongqing locations reflects a broader trend of strategic contraction within the wax museum segment in China, as the company reassesses its market presence [5][6]. Group 4: Future Outlook for Remaining Locations - The remaining Madame Tussauds locations in China face similar challenges, as merely updating with local celebrity figures is unlikely to sustain visitor interest due to high production costs and low update frequency [8]. - In contrast to theme parks like Disney, which maintain visitor engagement through continuous expansion and new content, wax museums lack the same capacity for growth and adaptation [8].

Core Insights - The Beijing Madame Tussauds wax museum will permanently close on October 1, 2025, due to lease expiration and brand strategy adjustments [1] - After the closure, most wax figures will be relocated to other Madame Tussauds locations in China, while a few will be preserved [2] - The closure of the Beijing location is part of a global trend affecting Madame Tussauds and similar attractions [5] Industry Trends - The closure of the Chongqing Madame Tussauds in May 2023 marked the end of nearly nine years of operation, indicating a broader decline in such attractions [4] - Merlin Entertainments, the parent company, is restructuring its business and implementing dynamic pricing to address visitor and cost pressures [6] - The San Francisco Madame Tussauds also announced its permanent closure in 2024 due to insufficient visitor numbers and lease expiration [7] Changing Consumer Preferences - The decline of wax museums reflects a shift in consumer preferences towards more immersive and interactive experiences [20][24] - Younger audiences are increasingly drawn to experiences that allow them to participate actively rather than simply taking photos with wax figures [23][45] - The rapid turnover of celebrity culture means that wax figures often lack relevance and emotional value for today's youth [28][29] Market Challenges - The wax museum experience is perceived as outdated, with many visitors finding it less engaging compared to other entertainment options [32][34] - The pricing of tickets, around 200 yuan, does not align with the perceived value of the experience, leading to low repeat visits [29] - The industry is facing a "death zone" for mid-tier experiential projects, where costs cannot be recouped and social engagement is weak [33] Strategic Shifts - Merlin Entertainments is pivoting towards more engaging projects like LEGO parks, which offer stronger immersion and interaction [43] - The future of attractions will depend on their ability to provide memorable experiences that allow visitors to feel like protagonists in their own stories [45][48]

Core Viewpoint - The Beijing Madame Tussauds wax museum will permanently close on October 1, 2025, due to the expiration of its lease and brand strategy adjustments, with most wax figures relocating to other locations in China [1][5]. Group 1: Closure Announcement - The Beijing Madame Tussauds wax museum has announced its permanent closure, effective October 1, 2025, primarily due to lease expiration and strategic brand planning [1]. - Following the closure, most wax figures will be moved to other Madame Tussauds locations in China, while a few will be preserved [1]. Group 2: Financial Performance - Merlin Entertainments, the parent company of Madame Tussauds, reported a pre-tax loss of £492 million for 2024, largely attributed to asset value impairment, with the brand value of Madame Tussauds declining by £16.3 million [5]. - The high operational costs of the wax museum, including significant rent and production costs, contribute to its financial struggles [7][8]. Group 3: Operational Challenges - The cost of producing a single wax figure is approximately 1.5 million yuan, and the annual rent for a 3,000 square meter venue in a prime location can exceed 10 million yuan [7]. - The museum's revenue model relies heavily on ticket sales, which have been adjusted from nearly 200 yuan to a promotional price of 99 yuan, indicating challenges in attracting repeat visitors [7][8]. Group 4: Market Trends - The decline in visitor frequency and the perception of low value for money are significant factors in the museum's struggles, as many visitors feel that the experience does not justify the cost [8]. - The traditional model of static celebrity displays is seen as outdated in the context of the current short-video era, leading to decreased engagement and repeat visits [8].

Core Viewpoint - The Madame Tussauds wax museum in Beijing will permanently close on October 1, 2025, due to lease expiration and strategic brand adjustments by Merlin Entertainments, which has been experiencing significant financial losses [2][3]. Group 1: Closure Announcement - The Beijing Madame Tussauds wax museum announced its permanent closure, with most wax figures relocating to other locations in China, including Shanghai, Hong Kong, and Wuhan [2]. - The museum opened in May 2014 and was the first international entertainment venue in Beijing's Qianmen commercial street [2]. Group 2: Financial Performance - Merlin Entertainments reported a pre-tax loss of £492 million for the year 2024, an increase from a £214 million loss in 2023, indicating a worsening financial situation [3]. - The brand value of Madame Tussauds wax museum declined by £163 million in 2024, contributing significantly to the overall impairment losses for the company [3]. Group 3: Operational Challenges - The production of wax figures is complex and costly, taking 3 to 4 months and costing up to millions, which adds to the high operational costs of the wax museum [4]. - The primary revenue sources for the wax museum are ticket sales and merchandise, which are directly linked to visitor numbers. However, there is a growing preference for interactive and immersive experiences among visitors, leading to a decline in attendance at traditional wax museums [4]. - Compared to theme parks like Disney and Universal Studios, the merchandise sales at wax museums are not as strong, and the high rental costs associated with prime locations further strain profitability [4].