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 significant price drop of Labubu collectibles is primarily attributed to a large-scale restock by Pop Mart, leading to a drastic decline in secondary market prices and impacting the company's stock performance [2][4][7]. Group 1: Price Decline and Market Impact - Labubu 3.0 box set prices fell by 45%, while the hidden variant "Ben Wo" saw a price drop of over 38% due to Pop Mart's extensive restocking efforts [2]. - The average transaction price for the "Qian Fang Gao Neng" series Labubu pendant plummeted nearly 48%, from 2279.7 yuan to 1181.3 yuan [4]. - The price range for regular Labubu items has decreased to between 208 yuan and 385 yuan, with hidden variants dropping from 4699 yuan to 2048 yuan within a week [4]. Group 2: Pop Mart's Restocking Strategy - Pop Mart initiated a three-day restock starting June 18, with multiple notifications of product availability across various platforms, although many consumers faced difficulties accessing the purchase interface [2][3]. - An internal source indicated that the company is optimizing the sales process to enhance consumer experience and mitigate the impact of scalpers [3]. Group 3: Stock Performance - Following the news of price drops and restocking, Pop Mart's stock fell over 5% on June 19, with a cumulative decline of over 12% from its peak on June 12 [7]. - Despite a strong performance earlier in the year, with stock prices increasing from around 85 yuan to a peak of 283.4 yuan, the current valuation raises concerns about potential corrections [7]. Group 4: Background on Labubu - Labubu is a character from Pop Mart's exclusive IP "THE MONSTERS," designed by Hong Kong designer Long Jia Sheng, and has gained significant popularity since its global release in April [5]. - The character's unique design combines cute and rebellious elements, contributing to its appeal and subsequent market frenzy [5]. Group 5: Legal Issues and Market Regulation - Recent customs inspections revealed a batch of 20,240 infringing Labubu toys, leading to their seizure, indicating ongoing challenges in protecting intellectual property rights [7].

Core Viewpoint - The significant price drop of Labubu collectibles is primarily attributed to a large restock by Pop Mart, leading to a drastic decline in secondary market prices and impacting the company's stock performance [1][6][10]. Group 1: Price Decline and Market Impact - Labubu 3.0 box set prices fell by 45%, while the hidden variant "Ben Wo" saw a price drop of over 38% [2]. - The average transaction price for the "Qian Fang Gao Neng" series Labubu pendant plummeted nearly 48%, from 2279.7 yuan to 1181.3 yuan [7]. - The price range for regular Labubu items has decreased to between 208 yuan and 385 yuan, with the hidden variant "Ben Wo" priced at 2048 yuan [7]. Group 2: Reasons for Price Drop - The price drop is linked to Pop Mart's extensive restocking efforts, which began on June 18 and included multiple notifications across various platforms [3][4]. - An internal source from Pop Mart indicated that the restocking would not follow a predictable pattern to mitigate the influence of scalpers [5]. Group 3: Stock Performance - Following the news of the price drop and restocking, Pop Mart's stock fell over 5%, with a current price of 248.6 HKD per share, marking a cumulative decline of over 12% from its peak [10]. - The stock had previously surged from approximately 85 HKD per share at the beginning of the year to a high of 283.4 HKD on June 12, representing a maximum increase of 233% [10].

Core Insights - Labubu has emerged as a phenomenon in China's outbound branding, becoming a top IP in the cross-border e-commerce market [1][3][19] Group 1: Market Performance - Labubu has become the top search term on AliExpress ahead of the overseas 618 shopping festival, indicating its rising popularity [2][3] - Sales of the Labubu 3.0 series have surged globally, with year-on-year growth of approximately 800% in the U.S. and 600% in Europe [3][6] - Bubble Mart reported a significant revenue increase of 165%-170% in Q1 2025, with overseas market revenue growing by 475%-480% [6][7] Group 2: Product Popularity - Labubu-related products have seen a dramatic increase in search volume on Amazon, with "Labubu" entering the top ten search terms [8][9] - The most popular category is Labubu-themed clothing, with top-selling items achieving over a thousand sales in the past month [9][12] - Labubu's merchandise is also performing well on other platforms like Temu, with thousands of units sold [12] Group 3: Marketing and Branding - Celebrity endorsements from figures like BLACKPINK's Lisa and David Beckham have significantly boosted Labubu's visibility [17] - User-generated content on platforms like TikTok has created viral marketing effects, enhancing Labubu's brand presence [17] - Labubu's collaboration with local artists and brands, such as ZARA, has helped position it as a luxury accessory, increasing its market appeal [17][18] Group 4: Consumer Behavior - Labubu appeals to two main consumer groups: those seeking emotional fulfillment and those viewing it as an investment [18][19] - The pricing strategy in markets like the UK ranges from £13.5 to £50, with rare items reselling for hundreds of pounds on platforms like eBay [18] Group 5: Future Implications - The success of Labubu demonstrates the viability of an IP-centric business model for sustainable global operations [19]

Core Viewpoint - The article discusses the rapid rise of Labubu, a character from the THE MONSTERS series, as a new cultural phenomenon and potential global IP, drawing comparisons to Hello Kitty and highlighting its success in various markets, particularly in North America and Europe [9][19][20]. Group 1: Market Performance - Labubu has gained immense popularity, with sales in the U.S. and Europe increasing approximately 8 times and 5 times year-over-year, respectively [18]. - The Labubu 3.0 series achieved a remarkable sales figure of $1.5 million (approximately 10.78 million yuan) in just 8 hours during a TikTok Shop live stream [14]. - In April 2024, the POPMART US SHOP reached monthly sales of $6-7 million (approximately 43-50 million yuan), becoming the top seller on TikTok Shop in the U.S. [15]. Group 2: Cultural Impact - Labubu has been embraced as a "social currency," with limited editions being resold at prices up to five times their original value [4]. - The character's unique design, which breaks traditional cute toy stereotypes, resonates with younger consumers, leading to a viral trend of customization and personal expression [22][31]. - Labubu's association with celebrities like Lisa from BLACKPINK and Rihanna has significantly boosted its visibility and desirability in the fashion world [25][27]. Group 3: Brand Strategy - The success of Labubu is attributed to effective marketing strategies, including localized approaches and collaborations with well-known IPs like Disney and Harry Potter [48][52]. - The character has been given a personality and backstory, enhancing its relatability and emotional connection with consumers [46]. - POPMART's global expansion strategy has led to a significant increase in overseas revenue, with a reported 379.6% growth in 2024 [54][57]. Group 4: Future Prospects - Morgan Stanley predicts that Labubu's sales could grow from 3 billion yuan in 2024 to 14 billion yuan by 2027, indicating its potential as a major global IP [19]. - The company aims to achieve 50% of its sales from overseas markets, with a target of surpassing 10 billion yuan in international sales by 2025 [57][58]. - The ongoing challenges in supply chain management and the presence of counterfeit products pose risks that the brand must navigate to maintain its market position [58].

Core Insights - Labubu 3.0 has sparked a global phenomenon, significantly enhancing its brand recognition and influence in the collectible toy market [1] - The popularity of Labubu 3.0 in overseas markets is driving accelerated growth in the domestic market, with expected revenue growth of 95%-100% in 2Q25 compared to 1Q25 [2] - The U.S. and European markets have become the primary engines for overseas expansion in 2025, with U.S. revenue growth projected at 895%-900% and European revenue growth at 600%-605% [3] - The company has raised its profit forecasts for 2025 and 2026, with a target price adjustment to 293.9 HKD based on a DCF valuation method [4] Group 1 - Labubu has become the most popular collectible toy IP globally, with significant social media presence and demand [1] - The limited sales strategy has led to long queues outside physical stores, further increasing Labubu's popularity [1] - Domestic same-store sales growth in April exceeded that of 1Q25, indicating strong market demand [2] Group 2 - The company has shifted most U.S. orders to Vietnam to mitigate potential supply chain risks from tariffs [3] - The strong brand and product power of Labubu allow the company to pass on potential tariff costs to consumers [3] - The revenue forecasts for 2025 and 2026 have been increased by 17% and 15%, respectively, reflecting a positive outlook [4]

Core Viewpoint - The Labubu 3.0 series from Pop Mart is experiencing significant popularity in the global market, particularly in the US and Europe, driven by celebrity endorsements and social media engagement [1][2][3]. Sales Performance - In April, sales in the US and EU markets increased approximately 8 times and 5 times year-on-year, respectively, indicating the successful penetration of Labubu 3.0 in these regions [3][4]. - Online sales through e-commerce platforms in China saw a year-on-year growth of 287% in April, with significant contributions from platforms like Tmall, JD, and Douyin [5]. Social Media and Brand Influence - Pop Mart's TikTok followers in the US grew from 431,200 in March to 722,900 in April, marking a 68% increase, and the brand ranked first in TikTok retail sales in April [4]. - The Labubu 3.0 series is increasingly being used as a fashion accessory by celebrities and KOLs, enhancing its appeal in the fashion sector [1][2]. Retail Expansion - Pop Mart plans to open 110 new retail stores overseas and 20 in the domestic market, aiming for a total of approximately 650 stores by the end of 2025 [5][8]. - The company has opened 14 new retail stores this year, focusing on landmark and cultural locations to provide immersive experiences for consumers [4]. Financial Projections - According to Bank of America, Pop Mart's revenue is expected to reach HKD 22.601 billion and net profit HKD 6.5 billion by 2025, reflecting a year-on-year growth of 91% [8]. - The current stock price of Pop Mart is around HKD 207, corresponding to a price-to-earnings ratio of 42.42 times for 2025, which is considered attractive given the company's growth prospects [8][7].