POP MART(HK:09992) Changjiang Securities·2025-08-08 05:38Investment Rating - The report does not explicitly state an investment rating for the industry or company Core Insights - The development of Labubu illustrates the interplay between "fate" and "momentum" in creating a successful IP, with unique artistic foundations and innovative product forms driving long-term viability [2] - The transformation of Labubu from a niche product to a global phenomenon is marked by product innovation and effective social media marketing, leading to significant overseas growth [6][25] - The significant price appreciation in the secondary market and high auction prices indicate a surge in IP popularity, showcasing the brand's strong market presence [7][26] Summary by Sections Origin: Rich Artistic Heritage and "Rebellious" Image Fusion - Labubu's success is rooted in creator Long Jia Sheng's unique artistic vision, blending personal experiences with cultural elements, resulting in a character that resonates with contemporary aesthetics [5][14] - The character's "ugly-cute" design challenges traditional norms, appealing to younger audiences' desire for authenticity and emotional connection [5][17] Turning Point: Product Innovation and Social Media Breakthrough - The introduction of plush keychain products marked a pivotal moment for Labubu, enhancing its appeal as a social accessory and driving significant overseas sales [6][19] - Celebrity endorsements, particularly from Lisa, catalyzed Labubu's popularity, leading to explosive growth in Southeast Asia and record sales figures [6][25] Explosion: Significant Secondary Market Premiums and High Auction Prices - The secondary market for Labubu products has seen prices soar, with some items fetching over 30 times their original price, indicating strong demand and brand loyalty [7][26] - High-profile auction results further underscore the brand's market strength, with unique pieces selling for over 1 million RMB [7][26] Outlook: Deepening IP Group Strategy and Building a Comprehensive Business Ecosystem - The report highlights the strategic shift towards a diversified entertainment model, leveraging IP matrices and immersive experiences to ensure long-term brand sustainability [8][38] - The company aims to expand its global footprint while enhancing its IP portfolio through innovative collaborations and localized cultural adaptations [8][38]