Hu Xiu·2025-06-10 23:58Core Viewpoint - The article discusses the competitive landscape of the collectible toy industry, focusing on the contrasting positions of Pop Mart and 52TOYS, highlighting the challenges 52TOYS faces in replicating Pop Mart's success in terms of brand recognition, sales channels, and profitability [1][12][18]. Group 1: Market Position and Performance - Pop Mart has achieved significant market success with a market capitalization close to HKD 350 billion, driven by popular IPs like LABUBU [1]. - 52TOYS has submitted its prospectus for an IPO in Hong Kong and has secured new financing from notable investors, indicating strong market interest [2][3]. - In terms of GMV, 52TOYS ranks third among Chinese IP toy companies, with a market share of only 1.2%, compared to Pop Mart's 11.5% [3][4]. Group 2: IP Strategy and Revenue Structure - 52TOYS employs a dual strategy of developing its own IPs while also relying heavily on licensed IPs, with 64.5% of its revenue coming from licensed IPs in 2024 [4][14]. - The company has 35 proprietary IPs and 80 licensed IPs, but its reliance on licensed IPs has led to a decline in the contribution of proprietary IPs to revenue [4][5]. - The absence of blockbuster proprietary IPs has resulted in lower sales and market differentiation, as seen with the performance of its self-developed IPs compared to licensed ones like Crayon Shin-chan [5][14]. Group 3: Sales Channels and Distribution - 52TOYS has a limited number of direct retail stores, with only 8 locations across five cities, contrasting sharply with Pop Mart's 401 stores [9][10]. - The sales structure of 52TOYS is heavily reliant on distributors, with over 60% of sales coming from this channel, which limits direct consumer engagement [10][11]. - The company's slow expansion in direct retail stores hampers its ability to create a strong brand presence and customer loyalty compared to competitors [10][11]. Group 4: Financial Performance and Profitability - 52TOYS reported revenues of CNY 630 million in 2024, significantly lower than Pop Mart's CNY 13.038 billion, highlighting a stark revenue disparity [12][18]. - The gross margin for 52TOYS has fluctuated between 28.9% and 40.5%, while Pop Mart maintains a gross margin of 66.8%, indicating a significant profitability gap [13][14]. - The high cost structure of 52TOYS, driven by reliance on licensed IPs and a diverse product range, further erodes its profitability [14][15]. Group 5: Challenges and Industry Insights - The article emphasizes that the collectible toy industry has high barriers to entry, requiring a combination of proprietary blockbuster IPs, customer loyalty, and effective distribution channels for sustained growth [17]. - The challenges faced by 52TOYS in replicating Pop Mart's success are not just about product offerings but also involve fundamental differences in brand strategy and market approach [18].