Core Insights - The article discusses the dual nature of Pop Mart's brand performance, highlighting both the decline of the Labubu series and the rise of the Star People series, indicating that while Labubu may fade, Pop Mart's overall brand will continue to thrive [5][10][7]. Group 1: Brand Performance - Labubu's sales growth in North America is projected to drop from 1200% to 500% during the Black Friday period, leading to speculation about its decline [5]. - In contrast, the Star People series has achieved nearly 400 million in sales within just six months, surpassing Labubu's growth trajectory [6]. - The evolution of Pop Mart's IP reflects a keen understanding of emotional consumption, adapting to societal changes and consumer sentiments [7][19]. Group 2: Emotional Consumption Strategy - Pop Mart's strategy diverges from traditional IP models like Disney, focusing on "controllable randomness" to continuously engage consumers [9]. - The company captures shifts in mainstream emotions, allowing it to consistently produce popular products that resonate with young consumers [19][28]. - The emotional landscape influences the types of IP that gain traction, with dark-themed IPs thriving during economic downturns and sweeter themes during prosperous times [33][34]. Group 3: Globalization and Localization - While Pop Mart's IPs have global appeal, successful localization is crucial for market penetration, as seen in the mixed performance of Labubu in Indonesia due to cultural differences [23][25]. - The company employs localized IPs to mitigate potential cultural clashes, ensuring that its products resonate with diverse consumer bases [26]. Group 4: IP Development and Success Rate - Pop Mart's approach to IP development is systematic, involving a "anchor - reserve - race - test - heat" mechanism to identify and nurture potential hits [34][49]. - The company has achieved a new IP success rate of 68%, significantly higher than the industry average of 30%, indicating effective strategies in discovering and cultivating popular products [49][50]. - The process includes rigorous testing and market feedback to refine IP offerings, ensuring alignment with consumer desires [43][44].

Core Viewpoint - Pop Mart is experiencing a dynamic "economic relay," where while Labubu's sales growth in North America is expected to decline significantly, the emergence of new IPs like Star People indicates that Pop Mart's overall growth strategy remains robust and adaptable to changing consumer emotions [1][3]. Group 1: Market Dynamics - Labubu's sales growth in North America is projected to drop from 1200% to 500% during the Black Friday period, raising concerns about its longevity [1]. - The emergence of Star People, which achieved nearly 400 million in sales within just six months, suggests a shift in consumer preferences and highlights Pop Mart's ability to adapt [3]. - The strategy of capturing mainstream emotions allows Pop Mart to continuously engage young consumers, as evidenced by the high resale prices of Star People products in the secondary market [5][6]. Group 2: Emotional Consumption Strategy - Pop Mart's approach diverges from traditional IP models by focusing on "controllable randomness" to activate emotional consumption, indicating a new path for sustaining interest in its products [5]. - The evolution of IPs reflects societal emotional changes, with Star People resonating with current youth sentiments, contrasting with the earlier popularity of Labubu [6][8]. - The company has successfully identified and nurtured IPs that align with societal emotions, leading to a clear growth pattern in its product offerings [8][10]. Group 3: Global and Local Adaptation - Pop Mart's global IPs resonate with diverse cultural backgrounds, allowing for emotional expression without the need for a shared narrative, which is crucial for international appeal [10][14]. - Localized IP strategies, such as using softer aesthetic characters in regions with different cultural values, demonstrate Pop Mart's adaptability in various markets [14][17]. - The company's growth strategy is rooted in understanding local economic conditions and cultural sentiments, maximizing the value derived from emotional consumption [17][20]. Group 4: IP Development Mechanism - Pop Mart employs a systematic approach to IP development, utilizing a "anchor-reserve-race-test-heat" mechanism to identify and cultivate potential hits [18][24]. - The company has established a robust pipeline of over 350 artists globally, ensuring a continuous influx of creative IP ideas [20][22]. - The success rate of new IPs at Pop Mart has reached 68%, significantly higher than the industry average of 30%, showcasing the effectiveness of its development strategy [30]. Group 5: Long-term Vision - Pop Mart is positioned as a long-term player in the market, focusing on social emotions as a guiding principle for growth and employing industrial standards to refine its entire operational chain [30][31]. - The company aims to become a global IP factory, continuously evolving its strategies to capture and respond to changing consumer sentiments [31].