Core Viewpoint - The article discusses the challenges faced by Pop Mart, particularly regarding the rise of counterfeit products like "Lafufu," which are gaining popularity in overseas markets, posing a significant threat to the brand's intellectual property rights [3][10][20]. Group 1: Market Performance - In 2024, Pop Mart's revenue from overseas and Hong Kong, Macau, and Taiwan reached 5.07 billion yuan, marking a year-on-year growth of 375.2%, accounting for nearly 40% of total revenue [4]. - The phenomenon of counterfeit products is not limited to China; in the U.S. market, 31% of respondents reported purchasing replica luxury goods in the past year, with consumers taking pride in "smart consumption" [5]. Group 2: Intellectual Property Challenges - In the past year, Pop Mart faced 288 new civil lawsuits and administrative actions against 11 counterfeit sources, highlighting the increasing threat of IP infringement [6]. - The company has reported multiple seizures of counterfeit Labubu products, with customs authorities confiscating 140,000 items suspected of copyright infringement [6][10]. Group 3: Counterfeit Market Dynamics - The rise of "Lafufu" as a popular counterfeit has led to a thriving market, with consumers showing no shame in purchasing or displaying these products, even viewing them as a form of rebellion or cultural identity [20][23]. - In Singapore, unauthorized use of Pop Mart's IP has been observed in various sectors, including food and beverage, with local businesses using Labubu's likeness without permission [14][16]. Group 4: Legal and Enforcement Issues - The legal battle against counterfeiting is complex and costly, with high expenses associated with copyright infringement identification and the stringent standards for criminal prosecution [25][26]. - Pop Mart's legal strategies have evolved, focusing more on alternative dispute resolution methods rather than solely relying on litigation, reflecting a shift in approach to IP protection [25][32]. Group 5: Brand Perception and Consumer Behavior - The article notes a cultural shift where consumers in Western markets embrace counterfeit products, contrasting with the more shameful perception of counterfeits in China, where consumers are often unaware they are purchasing fakes [23][32]. - Pop Mart's founder emphasizes the importance of brand identity over platform status, acknowledging the dual challenge of counterfeit popularity as both a recognition of brand strength and a significant risk [32].