POP MART(HK:09992) Sou Hu Cai Jing·2025-11-06 16:27Core Viewpoint - The article discusses the significant decline in the stock price of Pop Mart, highlighting a clash between Eastern and Western perceptions of consumer culture and investment strategies, suggesting that foreign investors fail to understand the unique emotional connections that Chinese consumers have with products like Labubu [1][3][4]. Group 1: Market Dynamics - Pop Mart's stock price drop is perceived as a typical market fluctuation, but it represents a deeper cultural conflict and a challenge to traditional investment narratives [1]. - The article draws parallels between Pop Mart's situation and the historical example of Beanie Babies, indicating that Western investors view Pop Mart as another fleeting trend rather than a sustainable business model [1][3]. - The emotional economy surrounding products like Labubu is rooted in cultural nuances that Western investors struggle to grasp, leading to a misinterpretation of the brand's value [4][6]. Group 2: Cultural Perspectives - The entrenched biases of Western capital markets stem from a "narrative hegemony" that dictates what constitutes a successful intellectual property (IP), often overlooking the unique emotional connections in Eastern cultures [3][4]. - Pop Mart's business model, which integrates IP incubation, design, supply chain management, and direct retail, contrasts sharply with the licensing-dependent models of Western IP giants, showcasing a new commercial paradigm [4][6]. - The willingness of domestic investors to buy into Pop Mart despite market pressures reflects a deeper understanding of local consumer behavior and the emotional value of products in modern society [6][7]. Group 3: Future Implications - The ongoing short-selling battle transcends mere stock price fluctuations, evolving into a struggle for defining consumer narratives and market authority [6]. - The challenges faced by Pop Mart are indicative of the broader journey of Chinese innovative companies as they seek to ascend the value chain and redefine market standards [6][7]. - The article posits that the rise of new business models in China, such as those exemplified by Pop Mart, poses a threat to established Western paradigms, leading to defensive reactions from traditional investors [7][9].