Hu Xiu·2025-08-28 20:58Core Viewpoint - The article discusses the rapid production capacity expansion of Pop Mart, driven by the overwhelming demand for its LABUBU plush toys, highlighting the challenges and strategies in upgrading its supply chain to meet this demand [1][3][6]. Production Capacity Expansion - In mid-August, a factory in Dongguan, Guangdong, utilized a precision injection molding machine with a clamping force of 200 tons to produce LABUBU plush toys, achieving a daily production capacity of 100,000 units by mid-2025 [1]. - By August 2025, the monthly production capacity for plush products at Pop Mart is expected to exceed 30 million units, representing an increase of over 1000% compared to March 2025 [2]. Revenue Growth - The revenue for THE MONSTERS, which includes LABUBU, reached 4.81 billion yuan in the first half of 2025, marking a year-on-year growth of 668% and contributing 34.7% to the company's total revenue [3][6]. Supply Chain Challenges - The surge in demand for LABUBU has led to supply chain challenges, with many factories being redirected to produce LABUBU products, resulting in several weeks of stockouts in the market [6][7]. - The company faced difficulties in scaling production due to insufficient manpower, outdated equipment, and weak coordination between demand and production capacity [7]. Automation and Upgrades - Pop Mart is pushing for automation upgrades in its partner factories to enhance efficiency, particularly in packaging and quality control processes, aiming to increase production capacity by three to five times [8][15]. - The company has implemented a new supply chain management center to streamline operations across production, design, and logistics, improving the responsiveness to market demands [10][12]. Flexibility in Supply Chain - The return order cycle has been reduced from an average of 4-5 months in 2022 to 1-1.5 months in 2024, with some urgent cases achieving turnaround times of two to three weeks [13][15]. - Pop Mart is focusing on creating a "resilient supply chain" to better handle fluctuations in order volumes, emphasizing agility, adaptability, and alignment [15][17]. Future Production Plans - The company plans to establish six major production bases globally, with four in mainland China and two in Southeast Asia, to enhance its production capabilities [9]. - Pop Mart is actively seeking new partnerships and expanding its supply chain to ensure sufficient capacity for future hits like LABUBU [17][18].