POP MART(HK:09992) Hua Er Jie Jian Wen·2025-05-21 03:41Core Viewpoint - Labubu is emerging as a new generation super IP, surpassing Hello Kitty in search popularity, with significant sales growth potential projected from 3 billion RMB in 2024 to 14 billion RMB by 2027 [1][6][8]. Group 1: Comparison with Hello Kitty - Labubu and Hello Kitty share similarities in character style and business model, with Labubu being playful and appealing to collectors seeking individuality [2][5]. - Hello Kitty has a long-established commercialization path through extensive licensing, while Labubu focuses on self-operation and innovation, utilizing blind box sales to attract consumers [5][6]. - Labubu's all-time merchandise GMV is 0.6 billion USD compared to Hello Kitty's 84.5 billion USD, indicating a significant growth trajectory for Labubu [3][6]. Group 2: Market Performance and Growth Potential - Labubu's search interest has seen exponential growth, particularly in Southeast Asia, Mexico, and Spain, indicating a rising global brand influence [3][4]. - The report anticipates Labubu's sales in the THE MONSTERS series to reach 14 billion RMB by 2027, with a potential to match Hello Kitty's search interest [8][10]. - The growth of Labubu is attributed to product innovation, celebrity endorsements, and strategic marketing activities, such as collaborations with the Thailand Tourism Authority [9][10]. Group 3: Future Growth Engines - Beyond existing IPs, Pop Mart is expected to introduce new growth engines in the next 1-3 years, with Molly and Crybaby projected to exceed 5 billion RMB in sales [10]. - Traditional blind box toys will remain the main product category, but other categories like plush toys and MEGA figures are expected to increase their sales contributions [10]. - The potential introduction of AI toys is anticipated to lead a new trend in the Chinese toy industry, enhancing interactivity and personalization [10].