Core Viewpoint - The article discusses the declining market performance of Pop Mart, particularly focusing on the Labubu series, which has seen a significant drop in both secondary market prices and stock value, indicating a potential bubble in the collectible toy market [2][3][5]. Group 1: Market Performance - On June 18, Pop Mart replenished its Labubu blind box series, leading to a continuous decline in secondary market prices [2] - Pop Mart's stock price dropped by 5.33% on June 19 and opened down 6.19% on June 20, closing with a 3.62% decline [2] - The number of shares shorted increased from 1.438 million in early April to 3.692 million by June 17, marking a 157% rise [5] Group 2: Business Model and Market Sentiment - Pop Mart's business model is heavily reliant on consumer emotions, which can be volatile; the initial appeal of Labubu diminished as it became widely popular [3][4] - The presence of counterfeit products and hoarding by scalpers has eroded consumer trust and weakened Pop Mart's pricing power [3] - High valuations and market skepticism suggest that even if Pop Mart is not a bubble, its valuation is precariously close to a potential collapse [5] Group 3: Comparison with Disney - Pop Mart's founder has expressed ambitions for the company to become akin to Disney, but Disney's IPs have a longer lifecycle and stronger consumer loyalty [5] - Disney maintains strict control over its IPs and has established a comprehensive anti-counterfeiting system, which Pop Mart currently lacks [5] Group 4: Future Outlook - Pop Mart is recognized as a pioneer in China's trendy toy market and is making efforts to enhance its content offerings, including plans for an animated series [6] - The company must be cautious about the rapid commercialization of its products and the influence of scalpers, as these factors could undermine consumer enthusiasm and trust [6]

Core Viewpoint - The stock price of Pop Mart has shown significant volatility, reflecting the sensitivity of its business model, which relies heavily on consumer emotions and trends [2][3]. Group 1: Stock Performance - On June 19, Pop Mart's stock price dropped by 5.33%, and on June 20, it opened significantly lower with a decline of 6.19%, eventually narrowing to a 5.55% drop [1]. - The short-selling volume of Pop Mart shares surged from 1.438 million shares in early April to 3.692 million shares by June 17, marking a 157% increase and reaching a new high since March [3]. Group 2: Business Model and Market Dynamics - Pop Mart's business model is characterized as an "emotional business," which is subject to the fickleness of consumer preferences. The popularity of the Labubu series has led to market saturation and aesthetic fatigue among consumers [2]. - The presence of scalpers and counterfeit products in the secondary market has intensified the "bad money drives out good" phenomenon, undermining consumer trust and Pop Mart's pricing power [2]. Group 3: Comparison with Disney - Pop Mart aims to emulate Disney's success but faces challenges due to the shorter lifecycle of its IPs compared to Disney's classic characters, which have enduring appeal across generations [3][4]. - Disney maintains strict control over its IP image and has established a comprehensive anti-counterfeiting system, highlighting the need for Pop Mart to strengthen its brand protection [4]. Group 4: Future Outlook - Pop Mart is recognized as a pioneer in China's trendy toy market and is striving to enhance its content infrastructure, including plans to launch an animated series titled "LABUBU and Friends" [4]. - The company must be cautious about the rapid commercialization of its IPs and the influence of scalpers, as these factors could deplete consumer enthusiasm and trust, posing a significant threat to its business model [5].