Group 1 - Popop, a jewelry brand under Pop Mart, launched its first gold product line, featuring items priced between 980 and 56,800 yuan, with gold prices per gram mainly concentrated between 1,300 and 1,700 yuan [1] - The initial sales data for the new gold series is reported to be good, with over 20 SKUs available, although each product has limited stock of around ten pieces [1] - The launch event in Shanghai was less crowded compared to previous openings, indicating a potential decline in consumer interest [1] Group 2 - The second-hand market for the Labubu series saw a significant price drop, with the average transaction price falling to 142 yuan, down from a peak of 3,200 yuan for a complete set [3][5] - Some scalpers have paused their purchasing strategies due to the drastic price decline, indicating a cautious market outlook [5] - Economic experts suggest that the current price decline of Labubu may lead to a continuous downward trend, emphasizing the need for Pop Mart to innovate and produce new IPs to sustain market interest [7] Group 3 - As of the latest trading session, Pop Mart's market capitalization is reported at 371.7 billion HKD, with a recent decline of over 10% in stock price over the past five days [8][9] - The company's stock performance shows a year-to-date increase of 210.03%, but recent trends indicate volatility and potential challenges ahead [9]

Core Viewpoint - The article highlights the impressive growth and performance of Pop Mart, a leading player in the "new consumption" sector in China, particularly in the overseas market, showcasing its strong IP innovation and market expansion strategies [9][10][12]. Financial Performance - In the first half of 2025, Pop Mart reported revenue of 13.88 billion RMB, a year-on-year increase of 204%, and an adjusted net profit of 4.71 billion RMB, up 362.8% [10]. - The revenue from the Greater China region was 8.28 billion RMB, growing by 135.2%, while the Americas saw a staggering revenue increase of 1142%, reaching 2.26 billion RMB [10][12]. - The company's stock price has surged by 250% year-to-date, reflecting strong investor confidence [9]. Market Expansion - Pop Mart's North American market focus has led to the opening of 19 new stores, bringing the total to 41, with offline revenue increasing by 744.3% to 840 million RMB [14]. - The company has implemented a free shipping policy for orders over 29.9 USD, enhancing its online sales, which now account for 40% of total revenue [14]. IP Innovation - Pop Mart's success is attributed to its strong IP innovation capabilities, with key IPs like LABUBU generating 4.81 billion RMB in revenue, accounting for 34.7% of total sales [12]. - The company faces the challenge of sustaining revenue growth from its existing top IPs while developing new ones to maintain its market position [16]. Valuation and Market Outlook - Despite impressive growth, Pop Mart's valuation exceeds a 100x PE ratio, raising concerns about sustainability if future EPS growth does not meet expectations [16]. - Analysts suggest that the longevity of individual IPs will be crucial for maintaining high valuations, with the potential for significant market growth compared to established brands like Sanrio and LEGO [17][18].

Core Viewpoint - The article highlights the impressive growth and international expansion of Pop Mart, particularly in the North American market, driven by strong IP innovation and consumer demand [8][10][12]. Financial Performance - In the first half of 2025, Pop Mart reported revenue of 13.88 billion RMB, a year-on-year increase of 204%, and adjusted net profit of 4.71 billion RMB, up 362.8% [10]. - Revenue from the Greater China region was 8.28 billion RMB, growing 135.2%, while the Americas saw a staggering 1142% increase in revenue to 2.26 billion RMB [10]. - The company's stock price surged by 250% year-to-date, reflecting strong market confidence [8]. Market Dynamics - The article notes that the North American market contributed significantly to Pop Mart's growth, with a net increase of 19 stores, bringing the total to 41 in the region [14]. - The online revenue share has reached 40%, with a fast restocking process for popular items compared to China [14] [12]. IP Innovation - Pop Mart's success is attributed to its strong IP innovation capabilities, with key IPs like LABUBU generating significant revenue [12]. - The company faces challenges in sustaining the lifecycle of its IPs, as nearly 60% of revenue comes from its top four IPs [17]. Future Outlook - Analysts suggest that the next decade will be crucial for Chinese IPs, emphasizing the importance of emotional resonance and global outreach for sustained growth [15]. - The article discusses the need for Pop Mart to extend the lifecycle of its IPs and create deeper emotional connections with consumers to maintain high valuations [19].

Core Viewpoint - The significant growth of Pop Mart's stock price, which has increased by 250% year-to-date, reflects its strong performance in both domestic and international markets, particularly in North America [1][7]. Financial Performance - For the first half of 2025, Pop Mart reported a revenue of 13.88 billion RMB, a year-on-year increase of 204%, and an adjusted net profit of 4.71 billion RMB, up 362.8% [8]. - The revenue breakdown shows that the Greater China region generated 8.28 billion RMB (up 135.2%), Asia-Pacific 2.85 billion RMB (up 257.8%), Americas 2.26 billion RMB (up 1142%), and Europe and other regions 480 million RMB (up 729.2%) [8]. - The company's gross margin improved to 70.3%, an increase of 6.3 percentage points year-on-year, driven by overseas pricing adjustments and economies of scale [13]. Market Expansion - Pop Mart's North American market is focused on the U.S., with a net increase of 19 physical stores, bringing the total to 41, and offline revenue reaching 840 million RMB, a year-on-year increase of 744.3% [13]. - The company has implemented a free shipping policy for orders over $29.9, enhancing its online sales, which now account for 40% of total revenue [13]. IP Innovation and Sustainability - Pop Mart's success is attributed to its strong IP innovation and iteration capabilities, with its popular IP, LABUBU, generating 4.81 billion RMB, accounting for 34.7% of total revenue [11]. - The sustainability of high valuations is contingent on the ability to keep existing IP relevant and to develop new top-tier IPs, as current leading IPs contribute nearly 60% of revenue [14]. Valuation and Market Potential - Analysts note that Pop Mart's valuation exceeds a 100x PE ratio, with a projected compound annual EPS growth rate of 68% over the next three years, suggesting a PEG ratio of around 1.4 [15]. - The potential market size for Pop Mart's IPs is significant, with projected sales for MOLLY and THE MONSTERS reaching $300 million and $400 million respectively by 2024, compared to $1.8 billion for Hello Kitty [16].

Core Insights - The Chinese潮玩 (trendy toy) market has seen the emergence of popular products, with brands like TOP TOY and 52TOYS gaining significant traction on social media. The Labubu series from Pop Mart, created by artist Kasing Lung, has become a key revenue driver, contributing nearly half of the company's income in 2024 [1] - The sustainability of these popular IPs (intellectual properties) post-peak is a critical concern for the industry, prompting discussions on how companies can maintain growth [2][3] Group 1: Market Dynamics - The recent downturn in the new consumption sector has led investors to reassess growth logic in niche markets, including the潮玩 industry. The question of how companies can sustain performance after the initial hype is paramount [2] - Two typical paths for潮玩 companies are identified: one relies on short-lived viral IPs, while the other, like Hello Kitty, focuses on stable growth through multi-channel content output [2][3] Group 2: Content and Consumer Engagement - Content is essential for extending the lifecycle of IPs. Examples like Pokémon illustrate how diverse content offerings keep the brand visible to consumers [2] - New content forms, such as short videos and themed experiences, are becoming increasingly important as consumer habits evolve. Companies like Pop Mart are experimenting with various formats to keep their characters relevant in consumers' lives [3] Group 3: IP Portfolio Strategy - A diverse IP portfolio is crucial for mitigating risks associated with reliance on a single brand. Companies like Disney benefit from multiple IPs, which helps manage overall profitability even when one brand underperforms [4] Group 4: Valuation Considerations - The valuation of潮玩 companies is influenced by whether they are perceived as retail or content companies. In China, retail companies often face more cautious valuations compared to their counterparts in Western markets [5][6] - The ability to withstand market cycles is a key indicator of a company's quality, with financial metrics like inventory turnover and gross margin serving as indicators of effective strategy execution [6] Group 5: International Expansion - Chinese潮玩 brands are increasingly looking to expand internationally, with Pop Mart's Labubu series gaining attention in the U.S. market. The potential for success in the U.S. is bolstered by high consumer spending and cultural similarities [7][8] - Localization is critical for success in foreign markets, as demonstrated by Pop Mart's Crybaby series, which was designed by local talent in Thailand and quickly gained popularity [8]

Core Viewpoint - The recent decline in the "new consumption" sector, represented by Pop Mart and its peers, has raised concerns about valuation, IP lifecycle, and market sustainability, following a rapid price drop in collectibles and stocks within a short period [1][2][3]. Group 1: Market Performance - Pop Mart's stock price fell significantly, closing at 239.6 HKD per share on June 20, down 3.62% for the day, with a trading volume nearing 10 billion HKD and a net sell-off of 617 million HKD by southbound funds, marking the highest net sell-off since May 12, 2025 [4]. - Over a week, Pop Mart's stock has declined over 15% from its peak of 283.4 HKD per share on June 12, resulting in a market capitalization loss exceeding 50 billion HKD from its high of 380 billion HKD [5]. - The collectible Labubu's price in the secondary market plummeted by over 50%, with some non-hidden variants dropping nearly 60% [6]. Group 2: Valuation Concerns - The "new consumption trio" has seen significant price corrections, with declines of approximately 19% for Lao Pu Gold, 17% for Mixue Group, and 15% for Pop Mart from their respective peaks [2]. - As of June 20, Lao Pu Gold had a year-to-date increase of 243.75% with a dynamic P/E ratio of 89.2, while Pop Mart's increase was 168.36% with a P/E of 95.3, and Mixue Group's increase was 153.83% with a P/E of 40.7 [8]. - Comparatively, traditional consumer giants like Kweichow Moutai have a P/E of 20.2, and international companies like Disney and Hasbro have P/Es of 23.7 and 22.3, respectively, indicating that the new consumption sector may be overvalued [8]. Group 3: Diverging Opinions Among Fund Managers - Optimistic fund managers believe new consumption has high growth potential and cash flow, while cautious managers warn of overvaluation and potential bubbles, suggesting that the current market correction serves as a valuable "stress test" [3][10]. - Some fund managers argue that the current high valuations are unsustainable, especially when comparing the market capitalizations of Pop Mart and Lao Pu Gold to established companies like Hasbro and Chow Tai Fook [9]. - Conversely, other fund managers maintain a positive outlook, citing the potential for continued growth in the new consumption sector, particularly in emotional consumption and overseas expansion [10][11]. Group 4: Investment Framework Evolution - The investment framework for new consumption is evolving, with traditional metrics like P/E ratios being challenged by the importance of emotional value, user engagement, and IP longevity [12]. - Analysts emphasize the need for a deeper understanding of target demographics and consumer behavior, moving away from a channel-focused approach to a more nuanced analysis of product appeal and consumer needs [13][14].

Core Viewpoint - The CEO of Pop Mart, Wang Ning, emphasizes a cautious approach amidst the rising popularity of the Labubu IP, highlighting the balance between opportunity and risk, and the importance of maintaining brand trust and consumer experience over rapid growth [3][4]. Group 1: Company Strategy - Wang Ning advocates for a strategy focused on long-term brand development rather than short-term trends, aiming to establish Labubu as a sustainable IP rather than a fleeting fad [3]. - The company has implemented a new supply and pre-sale strategy for Labubu, including a "full-channel replenishment mechanism" and a purchase limit of 12 items per person to manage demand and prevent scalping [4]. Group 2: Market Performance - Despite the ongoing popularity of Labubu, Pop Mart's stock price experienced volatility, dropping from 275 HKD per share to 233 HKD within a few days, resulting in a market value loss of nearly 37 billion HKD [5]. - The fluctuation in stock price is attributed to changes in pre-sale policies affecting secondary market prices and the impact of early investor fund expirations leading to sell-offs [5]. Group 3: Market Dynamics - The premium on Labubu products in the secondary market has decreased from over 200% to approximately 75%, indicating a healthier market environment as supply increases [5][6]. - The situation reflects historical patterns seen with other successful toy brands, where increased supply and market segmentation can lead to a more balanced market for genuine consumers [6]. Group 4: Industry Challenges - The company faces challenges related to the lifecycle of IPs, as the popularity of Labubu may not be sustainable in the long term, similar to previous trends with other IPs like MOLLY [6].

Core Viewpoint - The founder and CEO of Pop Mart, Wang Ning, emphasizes the importance of maintaining a long-term vision for the Labubu IP, rather than allowing it to become a fleeting trend. He highlights the need for caution and stability amidst rising external expectations and risks [1]. Group 1: Company Strategy - Wang Ning advocates for a restrained approach within the company, focusing on sustaining consumer experience and brand trust rather than merely pursuing rapid growth. He stresses that health should take precedence over growth, and long-term success is more valuable than short-term gains [1]. - Following Wang Ning's internal sharing, Pop Mart adjusted its supply and pre-sale strategies for Labubu, launching the "Qianfang Gaoneng" series for global pre-sale on June 18, which had previously become a phenomenon since its initial release [2]. Group 2: Market Performance - Despite the popularity of Labubu during the 618 sales period, Pop Mart's stock price experienced volatility, dropping from 275 HKD per share on June 17 to 233 HKD by June 20, resulting in a market value loss of nearly 37 billion HKD [3]. - The fluctuation in stock price is attributed to changes in pre-sale policies affecting supply and the impact of early investor fund expirations leading to sell-offs, which influenced market sentiment [3]. Group 3: Pricing Dynamics - The premium pricing of Labubu products in the secondary market has decreased significantly, with previous premiums exceeding 200% now reduced to approximately 75%, indicating a healthier market adjustment [3]. - The increase in supply and the introduction of purchasing limits are expected to reduce the activities of scalpers, allowing genuine fans better access to products [4]. Group 4: Industry Challenges - The volatility in stock price and market value serves as a warning for Pop Mart, highlighting the challenges associated with the "IP life cycle." The company faces uncertainty regarding how long Labubu's popularity will last, especially as previous top IPs like MOLLY have seen their prominence decline [5].

Core Viewpoint - The article discusses the growth and lifecycle of IPs (Intellectual Properties) in the global market, particularly focusing on the success of domestic潮玩 (trendy toys) leaders like Labubu, and analyzes the operational strategies of world-class IPs such as Hello Kitty, Pokémon, and Mickey Mouse to identify potential investment opportunities and risks in the IP industry [1][4]. Global IP Market Overview - The global IP toy market is projected to reach 525.1 billion yuan in 2024, with a CAGR of 8% from 2024 to 2029, while the Chinese IP toy market is expected to grow to 75.6 billion yuan in 2024, with a CAGR of 17.2% during the same period [2][13]. - The concentration of the global IP licensing market has increased, with the top five companies holding a market share of 41% and the top ten at 54% as of 2024, indicating a trend towards market consolidation [2][21]. IP Lifecycle Model - The IP lifecycle is divided into four stages: birth, breakthrough, sedimentation, and stabilization, with each stage requiring different operational strategies to ensure longevity and profitability [3][30]. - Successful IPs often exhibit a high degree of adaptability and resource allocation, which are crucial for navigating through different lifecycle stages [3][30]. Case Studies of World-Class IPs - Hello Kitty, Mickey Mouse, and Pokémon have each experienced distinct lifecycle phases, with their peak GMV values reaching approximately 3.8 billion, 10 billion, and 12 billion USD respectively, showcasing their commercial viability and cultural significance [4][52]. - The commercial success of these IPs is influenced by factors such as brand inclusivity, geographic reach, and diverse monetization strategies, which can provide valuable insights for the domestic潮玩 industry [4][52]. Operational Strategies - Hello Kitty's operational strategy has evolved through various phases, including initial expansion, global breakout, adjustment periods, and digital transformation, highlighting the importance of adaptability in maintaining relevance [53][56]. - Mickey Mouse has maintained a stable brand presence through consistent content updates and a strong licensing model, benefiting from its deep-rooted cultural significance in the U.S. [57][59]. - Pokémon has leveraged continuous content innovation and a broad commercial ecosystem, including games, merchandise, and media, to sustain its popularity and revenue growth [60][62]. Conclusion - The analysis of these IPs illustrates that a well-structured operational strategy, combined with an understanding of market dynamics and consumer preferences, is essential for the longevity and profitability of IPs in the competitive landscape [3][4][30].

Core Viewpoint - The auction of a mint green Labubu for 1.08 million has sparked widespread discussion on social media, highlighting the phenomenon of "emotional consumption" and raising questions about the value of such collectibles [1][7][11]. Group 1: Company Performance - Pop Mart's revenue for 2024 is projected to reach 13 billion, with a year-on-year growth exceeding 100%, and nearly 40% of revenue coming from overseas markets, particularly a 600% increase in Southeast Asia and over 510% in North America [4]. - The founder of Pop Mart, Wang Ning, has seen his net worth rise to 146.7 billion, making him a prominent figure in the entrepreneurial landscape and a cultural ambassador for Chinese brands [4]. Group 2: Market Dynamics - The auction of the Labubu collectible is seen as a significant event that enhances its perceived value as an art piece, with the unique mint green version being the only one of its kind [7][11]. - The price of 1.08 million is not considered excessive in the global art market, where high-value transactions are common, indicating that Labubu is positioned to compete at this level [15][18]. Group 3: Brand Strategy - Wang Ning aims to transition Pop Mart from a domestic brand to a global one, emphasizing the need for comprehensive upgrades across supply chains, channels, products, and cultural aspects to adapt to globalization [6][14]. - The success of Labubu is attributed to its ability to resonate with contemporary culture and consumer trends, but there is a need for sustained content output and cultural relevance to maintain its position in the market [19][22]. Group 4: Future Challenges - The challenge for Labubu lies in its ability to continuously innovate and build cultural influence, as past IPs like Molly have shown that popularity can be fleeting without a strong narrative and cultural connection [21][24]. - To establish itself as a true "art-level IP," Pop Mart must evolve beyond the current trends and focus on long-term content and cultural strategies [22][24].