Core Insights - LABUBU has gained significant popularity, contributing to discussions about Bubble Mart's status as a "dark horse" or "bubble" in the market [2] - The release of Bubble Mart's semi-annual report provides concrete data reflecting its operational strategies and performance [2] Financial Performance - The THE MONSTERS series, centered around LABUBU, generated revenue of 4.81 billion yuan in the first half of the year, marking a 668% year-on-year increase and accounting for approximately one-third of total revenue [3] - In contrast to 2017, when MOLLY was the sole revenue driver, Bubble Mart now boasts a more diverse portfolio with five IPs generating over 1 billion yuan and thirteen IPs exceeding 100 million yuan in revenue [3] IP Development Strategy - Bubble Mart has established a unique "star-making" process to diversify its IP offerings, moving away from reliance on a single character [6] - The company sources IPs from signed artists, focusing on those with the highest popularity among consumers [7] - The process of identifying and developing IPs involves extensive market research and testing, ensuring that new products resonate with consumer emotions and preferences [10][11] Market Entry Strategy - Before entering new markets, Bubble Mart conducts thorough research and testing, including participation in local exhibitions and setting up pop-up stores to gauge consumer interest [15][16] - The company employs a tiered resource allocation strategy for its IPs, adjusting marketing and production efforts based on performance metrics [13][14] Business Model - Bubble Mart's core business model revolves around the operation of artist IPs, likening its role to that of a record label in the music industry [17][18] - The company has expanded its offerings beyond traditional toys to include jewelry and theme parks, all aimed at enhancing the IP experience [17]

Core Viewpoint - The article discusses the financial performance and operational strategies of Pop Mart, particularly focusing on the success of its LABUBU series and the diversification of its IP portfolio, highlighting the company's unique "star-making" process in the toy industry [5][6][15]. Group 1: Financial Performance - In the first half of the year, the THE MONSTERS series, centered around LABUBU, generated revenue of 4.81 billion yuan, marking a 668% year-on-year increase, accounting for approximately one-third of Pop Mart's total revenue [7]. - Pop Mart has diversified its IP portfolio significantly, with five IPs generating over 1 billion yuan in revenue and 13 IPs exceeding 100 million yuan in revenue in the first half of the year [7][10]. Group 2: IP Development Strategy - Pop Mart's strategy involves a systematic "star-making" process, akin to talent agencies, where the company identifies and collaborates with popular artists to create new IPs [15][17]. - The company conducts extensive market research and testing to evaluate the potential success of new IPs, focusing on metrics such as emotional resonance, visual memorability, and user extension [25][26]. Group 3: Resource Allocation and Market Entry - Pop Mart categorizes its IPs into different tiers, allocating marketing and operational resources accordingly, which allows for a flexible response to market demand [27][29]. - Before entering new markets, Pop Mart follows a three-step strategy: participating in local exhibitions, testing locations with pop-up stores, and analyzing sales data before establishing permanent stores [31][33]. Group 4: Long-term Viability - The company's long-term success hinges on its ability to continuously develop and promote new top-tier IPs, rather than relying solely on existing popular characters like LABUBU [36].