Core Viewpoint - The incident involving a live broadcast by Pop Mart has sparked significant consumer backlash, leading to a decline in the company's stock price and raising concerns about its brand perception [8][6]. Group 1: Incident Details - On November 6, during a live stream showcasing the DIMOO blind box priced at 79 yuan, a staff member remarked that the price was indeed high, to which another responded that "someone will buy it anyway" [5][3]. - This exchange was broadcast live and has been interpreted by many as the company mocking consumers, leading to widespread dissatisfaction [6][8]. Group 2: Consumer Sentiment - Influential commentator Hu Xijin noted that the dialogue directly impacts consumer emotions, potentially leading to disastrous consequences for Pop Mart if such sentiments spread [8]. - Many consumers expressed feelings of being treated as "fools" by the brand, criticizing the increasing prices and declining product quality [6][8]. Group 3: Company Performance and Background - Pop Mart, founded in 2010, initially faced losses but saw a dramatic turnaround post-2017, with revenues soaring from 158 million yuan in 2017 to 1.683 billion yuan in 2019, marking a growth rate of 225.4% and 227.2% in consecutive years [12][13]. - The blind box sales have been a major revenue driver, contributing significantly to the company's overall income, with blind box sales reaching 6.887 billion yuan in the first half of 2020, accounting for 84.2% of total revenue [13]. Group 4: Recent Financial Highlights - As of October 21, Pop Mart reported a revenue increase of 245% to 250% year-on-year for Q3 2025, with domestic revenue growing by 185% to 190% and overseas revenue skyrocketing by 365% to 370% [15]. - The company's founder, Wang Ning, has seen his wealth rise to 182 billion yuan, ranking him 17th on the Hurun Rich List, with a year-on-year increase of 562% [16].

Core Insights - The global toy market has seen a shift with Labubu from Pop Mart creating a buying frenzy, indicating a new breakthrough for the Chinese trendy toy industry [2][3] - Labubu's unique design and market positioning have resonated with contemporary youth, moving away from traditional "sweet" styles to a more quirky and rebellious aesthetic [3] - The success of Labubu is significantly driven by celebrity endorsements, which have exponentially increased its visibility and popularity among global fans [2][3] Market Dynamics - Labubu's blind box strategy enhances consumer engagement through surprise elements, leading to repeat purchases and a cycle of addiction [3] - According to a report, 46.78% of consumers cite the element of surprise as the main reason for purchasing trendy toys, highlighting the focus on social interaction and personal enjoyment rather than investment [4] - The secondary market for Labubu has seen significant price inflation, with original blind boxes priced at 99 yuan being resold for 200 to 600 yuan, and limited editions fetching prices as high as 820,000 yuan [6] Industry Outlook - The Chinese trendy toy industry is still in its growth phase, with rapid expansion observed in recent years, and the market size is projected to exceed 130 billion yuan by 2028 [9] - Pop Mart, as a leading player in the industry, has established a comprehensive supply chain and achieved significant revenue from its proprietary IPs, with over 50% of its annual revenue coming from self-owned IP products [6]

Core Viewpoint - The article highlights the rise of Wang Ning, founder of Pop Mart, as the new richest person in Henan, surpassing Qin Yinglin of Muyuan Foods, driven by the explosive popularity of the Labubu IP and significant stock price increases of Pop Mart [1][5][6]. Financial Performance - Pop Mart reported a revenue of 13.04 billion yuan in 2024, marking a year-on-year growth of 106.9%, with adjusted net profit reaching 3.4 billion yuan, up 185.9% [10]. - The Labubu IP, part of the THE MONSTERS series, generated 3.04 billion yuan in revenue, a staggering increase of 726.6%, making it the top revenue-generating IP for Pop Mart [10]. Market Dynamics - The stock price of Pop Mart surged by 174% year-to-date, and over 11 times since the beginning of 2024, with a market capitalization of approximately 3288 billion HKD (about 301.2 billion yuan) as of June 6 [6][10]. - Labubu's limited edition and collaborative products have been sold at exorbitant prices, with some fetching over 28,000 yuan in secondary markets, indicating a strong demand and a "hard currency" status among young consumers [11][15][20]. Global Expansion - Wang Ning expressed ambitions for Pop Mart's overseas business to potentially exceed 50% of total revenue by 2025, reflecting rapid growth in international markets [12]. - The Labubu series has seen global demand, with products selling out within minutes in markets like the US and UK, leading to incidents of consumer disputes due to scarcity [12][20]. Brand Strategy - Pop Mart's strategy includes managing scarcity to maintain the value of its IPs, with Wang Ning prioritizing sustainable growth over immediate profits [22]. - The blind box sales model has been identified as a key factor in the brand's success, appealing to consumer curiosity and collectibility, which has been effectively leveraged on social media platforms [21].

Core Insights - The popularity of LABUBU, a product from Pop Mart, reflects a shift in consumer preferences among young people, moving away from traditional collectibles like Moutai to unique and quirky toys [1][9][32] - Pop Mart has successfully leveraged its marketing strategies and IP development to create a significant revenue stream, with LABUBU contributing to a remarkable financial turnaround for the company [5][22][32] Group 1: Product Popularity and Market Dynamics - LABUBU's recent launch sold out instantly, leading to long queues at physical stores and a surge in demand on second-hand platforms, where prices have skyrocketed [1][4] - The resale prices for LABUBU products have seen extreme markups, with some items selling for two to three times their original price, and certain limited editions reaching as high as 14,000 RMB [4][29] - The emotional value and uniqueness of LABUBU cater to the current generation's desire for individuality and self-expression [9][32] Group 2: Financial Performance and Growth - Pop Mart reported a revenue of over 13 billion RMB in the past year, doubling its earnings compared to 2023, and its market capitalization exceeded 200 billion RMB [22][32] - The company's revenue from Southeast Asia surged by 478% in the first half of 2024, indicating strong international growth [21] - LABUBU's success has led to a significant increase in Pop Mart's overall revenue, with the company transitioning from a toy retailer to a "trendy toy printing machine" [13][22] Group 3: Challenges and Market Speculation - Despite its success, Pop Mart faces challenges such as regulatory scrutiny on blind box sales and the potential for its IPs to lose popularity quickly [16][32] - The market for trendy toys has attracted scalpers, leading to inflated prices and speculation, which may distort the original intent of these collectibles [24][30] - The sustainability of LABUBU's popularity and the company's ability to adapt to changing consumer trends remain uncertain [32][34]