Pop Mart, a leading Chinese toymaker, is poised for significant global expansion as it garners attention from major financial institutions. In January, US investment bank Morgan Stanley named Pop Mart a top pick, highlighting its potential to become a formidable global player. The company aims for overseas business to account for more than 50% of its total revenue by 2025, marking a strategic pivot in its growth trajectory.
Domestically, Pop Mart has seen impressive growth, with its market size ballooning from 6.8 billion yuan in 2015 to a staggering 60 billion yuan last year. Holding a robust market share of approximately 8.5%, the company is now setting its sights beyond China's borders. Southeast Asia stands as Pop Mart's largest overseas market, generating over 560 million yuan (US$77.2 million) in revenue in the first half of 2024, a near 480% year-on-year increase.
The toymaker's success in Southeast Asia is buoyed by its strategic embrace of "China chic," drawing on traditional Chinese culture to captivate audiences. Jeremy Lee, a key figure at Pop Mart, emphasizes the emotional value of their products.
“With economic (and daily) pressures, everyone is under a lot of pressure and feels stressed so we are fortunate to provide (some) emotional value, a quiet 15 seconds of joy.” – Jeremy Lee
Pop Mart's products resonate across emotional spectrums, offering fun and excitement that connect with consumers, whether in moments of happiness or sadness.
“(Our products) are something fun, something exciting and something cute – which can connect with you whether you’re happy or you’re sad,” – Jeremy Lee
These sentiments are echoed by Ariel Faye, a Pop Mart enthusiast who finds emotional value in collecting and displaying the toys.
“Emotional value” is what drives her passion for buying and displaying Pop Mart toys, she told CNA. – Ariel Faye
The company’s strategy involves perfecting its formula before further expanding its reach. R&D and innovation are set to play an increasingly crucial role in maintaining sales momentum through 2025. This commitment to innovation is reflected in Pop Mart's expansion plans for its Pop Land theme parks in China, including new rides in Beijing and pop-up experiences across the country.
Internationally, Pop Mart has made significant strides with collaborations involving global names such as Taiwanese bubble tea brand Gong Cha, L’Oréal, Uniqlo, and Samsung Electronics in Thailand. The popularity of Pop Mart toys has surged, fueled by endorsements from Thai celebrities like Blackpink’s Lisa and actor Mario Maurer.
“If we hadn't done R&D into taking blind box figurines (and transforming) them into half-vinyl pendant plushies, Lisa would never have had the opportunity to pick up a Labubu and put it on her post.” – Jeremy Lee
These endorsements reflect the nuanced strategy of blending innovation with traditional cultural elements. Chen Xiaoyun highlights this approach as part of Pop Mart's future vision.
“Over the next three years, Pop Mart will continue to release collaborative products related to traditional culture and intangible cultural heritage,” – Chen Xiaoyun
In Vietnam, the opening of a life-size three-storey Pop Mart castle at Sun World Ba Na Hills underscores the company’s innovative efforts to provide immersive experiences that resonate with fans globally.
The surge in demand for Pop Mart's products has also been mirrored in financial markets. Since the start of the year, shares on the Hong Kong Stock Exchange have risen by around 20%, reaching record highs on February 18. This financial success is a testament to Pop Mart's strategic positioning and market appeal.
Leave a Reply