Core Insights - The consumer base of Pop Mart continues to expand, with 76% of respondents having purchased Pop Mart products for the first time in the past year, and 45% being new buyers in the last three months [2][3] - The survey indicates strong future purchasing intent, with 87% of respondents likely to buy Pop Mart products in the next three months, driven by new series, limited editions, and seasonal releases [2] - Despite a previous decline in the popularity of the LABUBU IP, user growth, repurchase loyalty, and IP appeal remain resilient, supporting a target price of HKD 415 and a buy rating for Pop Mart [3] Consumer Behavior - Approximately 90% of respondents purchased at least two Pop Mart items, with 42% owning between 2 to 5 items, and only 9% indicating they would buy from second-hand platforms [2] - The primary motivations for purchasing include emotional satisfaction, trend-following, gifting, collecting, and personal interest [2] IP Popularity - LABUBU is the most attractive core IP, with 47% of respondents owning LABUBU products, and nearly half of the respondents were introduced to Pop Mart through LABUBU [3] - Other IPs like Twinkle Twinkle, Skullpanda, and Crybaby show higher-than-expected appeal in overseas markets, particularly Twinkle Twinkle leading in ownership in the U.S. [3] Demographics and Spending - 41% of Pop Mart users are aged 18-34, with a balanced gender distribution in the U.S., U.K., and Australia [3] - Average spending varies by country, with Australian respondents spending approximately USD 132 (about RMB 916), followed by China at USD 130, the U.S. at USD 110, the U.K. at USD 108, and Japan at USD 95 (about RMB 659) [3] Recent Developments - Pop Mart's stock price increased by 7.03% to HKD 231.4 following two share buybacks totaling nearly HKD 350 million, aimed at addressing investor concerns about sustainable growth [3][4] - The launch of the new PUCKY series, featuring a sound device that resonates with young consumers' needs for stress relief and blessings, has led to rapid sell-outs and high resale prices on second-hand platforms [4]

Core Insights - The consumer base of Pop Mart continues to expand, with 76% of respondents having made their first purchase in the past year, and 45% being new buyers in the last three months [1][4][5] - The survey indicates strong future purchasing intent, with 87% of respondents likely to buy Pop Mart products in the next three months, driven by new series, limited editions, and seasonal releases [1][4] - LABUBU remains the most attractive core IP, with 47% of respondents owning LABUBU products, and nearly half of the respondents first encountered Pop Mart through LABUBU [2][5] Consumer Behavior - Approximately 90% of respondents purchased at least two Pop Mart items, with 42% owning between 2 to 5 items, and only 9% indicating they would buy from second-hand platforms [1][4] - The primary reasons for purchasing Pop Mart products include emotional satisfaction, trend-following, gifting, collecting, and personal interest [1][5] Demographics and Spending - 41% of Pop Mart users are aged 18-34, with a balanced gender distribution in the US, UK, and Australia [2][5] - Average spending varies by country, with Australian respondents spending approximately $132 (about 916 RMB), followed by China at $130, the US at $110, the UK at $108, and Japan at $95 (about 659 RMB) [2][5] Market Performance and Future Outlook - Despite a decline in LABUBU's popularity and secondary market prices, user growth, repurchase loyalty, and IP appeal show strong resilience [2][5] - Citi Research projects that Pop Mart's breakthroughs in IP diversification, product innovation, and multi-field monetization will support continued growth through 2026, setting a target price of HKD 415 and a buy rating [2][5] - On January 28, Pop Mart's stock rose by 7.03% to HKD 231.4, following two share buybacks totaling nearly HKD 350 million [6]

Core Insights - The consumer survey conducted by Citi Research indicates that Pop Mart's user growth, repurchase loyalty, and IP appeal remain resilient despite market concerns about declining demand and secondary market price fluctuations [1][3]. Group 1: User Demographics and Behavior - 76% of respondents purchased Pop Mart products for the first time within the past year, with 45% being new customers in the last three months, particularly evident in markets like China and Japan [2]. - The survey shows that 34% of respondents buy Pop Mart products monthly, and 29% do so every three months, with 87% indicating they are likely to continue purchasing in the next three months [6][9]. - The average spending per respondent is highest in Australia at approximately $132, followed by China at $130, the US at $110, the UK at $108, and Japan at $95 [18]. Group 2: Market Dynamics and Purchasing Channels - Only 9% of respondents have purchased Pop Mart products through secondary markets, with the figure being just 2% in China and 15% in the US, indicating that official channels dominate consumption [10][13]. - The survey highlights that the "blind box" mechanism is crucial, with 80% of respondents valuing the element of surprise in their purchasing experience [19]. Group 3: IP Appeal and Product Preferences - LABUBU remains the most attractive core IP, with 47% of respondents owning LABUBU products, while other IPs like Twinkle Twinkle and Skullpanda show higher appeal in overseas markets than previously expected [14][17]. - The survey indicates that 93% of respondents plan to continue purchasing Pop Mart products, with 26% intending to increase their purchase frequency, driven by new series launches and limited editions [6][14]. Group 4: Consumer Satisfaction and Future Intentions - The demographic profile shows that 41% of Pop Mart users are aged 18-34, with a balanced gender distribution [20]. - High satisfaction levels are reported, with 54% of respondents being "very satisfied" and only 7% indicating they would not purchase again, supporting the brand's long-term loyalty [20].

Core Viewpoint - Pop Mart's adjusted net profit for the first half of 2025 surged by 367% year-on-year to 4.66 billion RMB, driven by strong overseas market performance and the success of its IP matrix, particularly the new IP "Twinkle Twinkle" which generated 389 million RMB in sales within six months [1][2][9]. Group 1: Financial Performance - Adjusted net profit reached 4.66 billion RMB, exceeding previous forecasts by 4% [2]. - Total revenue increased by 204% to 13.9 billion RMB, aligning with market expectations [2]. - Gross profit margin improved to 70.3%, up 6.3 percentage points from the previous year, while net profit margin rose to 33.0%, an increase of 12.8 percentage points [11]. Group 2: Overseas Market Expansion - Overseas sales, including Hong Kong and Macau, skyrocketed by 440% to 5.59 billion RMB, contributing approximately 50% to total group sales [3][4]. - The average sales per store in overseas markets are estimated to be four times higher than those in mainland China [3]. - Online sales in overseas markets increased significantly, with the proportion rising from 23.2% to 45.8% [3]. Group 3: IP Performance - The flagship IP Labubu saw sales grow by 668% to 4.81 billion RMB, accounting for 34.7% of total sales [7]. - The new IP "Twinkle Twinkle" achieved remarkable sales of 389 million RMB within its first six months, outperforming previous new IP launches [9]. - Crybaby, another established IP, ranked fourth in sales but experienced a 248% year-on-year growth, making it the second-fastest growing IP [10]. Group 4: Future Catalysts - The company is set to launch a collaboration with Uniqlo on August 22, which is expected to drive further sales [12][14]. - Potential inclusion in the Hang Seng Index could increase demand significantly, with estimates suggesting around 420 million USD in increased demand if added [12][14]. - Upcoming releases include the first season of "Labubu & Friends" animation and new product launches, which are anticipated to boost sales [12][14].

Core Viewpoint - The impressive financial report of Pop Mart has drawn attention to its global expansion and the iterative capability of its IP matrix, with significant profit and revenue growth driven by overseas market expansion and strong performance of key IPs [1] Group 1: Financial Performance - Pop Mart's adjusted net profit for the first half of 2025 surged by 367% year-on-year to 4.66 billion RMB, exceeding previous profit forecasts by 4% [1] - Total revenue increased by 204% to 13.9 billion RMB, aligning with market expectations [1] - Gross profit margin reached 70.3%, up 6.3 percentage points from the previous year, while net profit margin rose from 20.2% to 33.0%, an increase of 12.8 percentage points [5] Group 2: Overseas Market Expansion - Sales in overseas markets (including Hong Kong, Macau, and Taiwan) skyrocketed by 440% year-on-year to 5.593 billion RMB, contributing approximately 50% to the group's total sales, up from 44% in the second half of 2024 [2] - The average sales per store in overseas markets are estimated to be about four times that of mainland China stores [2] - Online sales in overseas markets increased significantly, rising from 23.2% in the first half of 2024 to 45.8% in the first half of 2025 [2] Group 3: IP Performance - The super IP Labubu continued its strong growth, with sales in the first half of 2025 increasing by 668% to 4.814 billion RMB, accounting for 34.7% of total sales [4] - The new IP "Twinkle Twinkle" achieved sales of 389 million RMB within its first six months, showcasing its strong market entry [4] - The IP Crybaby, despite ranking fourth, saw a sales increase of 248%, making it the second-fastest growing IP [4] Group 4: Future Growth Catalysts - The company is expected to benefit from several catalysts, including the launch of Labubu-themed T-shirts in collaboration with Uniqlo, potential inclusion in the Hang Seng Index, and the premiere of the "Labubu & Friends" animated series [5]