Core Viewpoint - Analysts believe that Pop Mart International, known for its Labubu dolls, will continue to be a leading consumer brand in China despite regulatory concerns regarding "blind box" toys [1][7]. Regulatory Environment - China's state media has called for stricter regulations on selling blind-box toys to children under eight, including age verification and parental approval for online purchases [2][3]. - The commentary on blind-box toys mirrors past regulations on video games aimed at reducing gaming addiction among minors, which significantly impacted the gaming industry [5]. Market Performance - Pop Mart's share price fell by 12.1% for the week ending June 20, marking its largest decline since late 2023, although it has since recovered to near all-time highs [4]. - The company experienced a remarkable 600% increase in share price over the past year, despite recent regulatory concerns [4]. Consumer Demographics - Pop Mart primarily targets Gen Z and millennials, which may insulate it from regulatory scrutiny aimed at younger children [7]. - The company is increasingly focusing on overseas markets, with projections indicating that its revenue from China will decrease to about 30% over the next decade [8]. Revenue and Growth - In 2024, Pop Mart derived approximately 61% of its revenue from mainland China, with significant growth in North America, where sales increased by over 550% year-on-year [9]. - HSBC Bank forecasts that Pop Mart's overseas revenue will more than double to 14 billion yuan ($1.95 billion) in 2025, accounting for over half of its projected revenue [10]. Consumer Behavior - The popularity of blind-box toys is growing among younger consumers, who seek "affordable exclusivity" through toy collections [11]. - Prices for Pop Mart's blind-boxed toys range from about 59 yuan to 5,999 yuan, with collectors often spending substantial amounts on rare models [12]. Challenges - Analysts caution that while Pop Mart's current popularity is strong, there is no guarantee that it will remain relevant in the long term [14]. - The company faces challenges such as delivery delays, scalping, and counterfeit products, which could harm its reputation [15][16]. Strategic Initiatives - To maintain brand freshness, Pop Mart is expanding its intellectual property portfolio and launching initiatives like pop-up stores, a film studio, and a theme park [17]. - However, these initiatives require significant investment and expertise beyond toy sales [18].

A bank in China has been barred from trying to lure customers by giving away these wildly popular Leubu dolls. Financial institutions like Ping and Bank are trying to capitalize on raging demand for PopMart's monster characters with a life-siz collectible recently fetching $150,000 at auction. Regulators stepped in to shut down the marketing stunt, Bloomberg News reported, citing sources who said these giveaway practices drive up costs and hurt margins.But the promotional tactic of resorting to Leubu dolls ...