The Beijing-based company is racing ahead with its global expansion plan, leveraging the worldwide craze over Labubus — a plush toy that has turned into a pop culture phenomenon in Western markets, particularly the US.
The pointy-eared, sharp-toothed monsters’ popularity is due in part to the company’s blind-box packaging approach for many of its products, a draw for customers curious about what’s inside. Revenue for The Monsters, the toy series that includes Labubu, reached 4.81 billion yuan, compared with 626.8 million yuan for the same period last year.
Pop Mart will keep expanding its global footprint by establishing offline channels in major landmarks, stepping up investment in its website and self-developed apps, and aiming to collaborate with more international brands and artists, according to its earnings statement.
“We believe Pop Mart’s strong capability in IP incubation and operation and overseas expansion will continue to underpin its solid growth momentum” in the second half, Citigroup analysts including Lydia Ling wrote.
Earlier this month, Pop Mart opened a megastore in the landmark Bangkok shopping center Iconsiam. The company said in March that it plans to open around 100 more outlets outside the mainland in 2025.
Founder and CEO Wang Ning said in a July interview with Chinese media that the company’s overseas growth has been much faster than expected.
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He estimated that foreign sales are likely to exceed the domestic Chinese market in 2025, and that North America sales may surpass Southeast Asia’s this year. Pop Mart’s toys are generally priced higher — and generate bigger margins — in Western markets than they do in China.
The hype around Labubu and strong growth has driven a rally in Pop Mart’s shares, which have gained 213% so far this year.
