Have you ever wondered that when the novelty of trend-driven collectibles and the thrill of gacha slowly fade, will people still keep paying for these little figures?
Based on the latest financial report, Pop Mart is at a turning point
▶️Growth is slowing, but it’s still a huge behemoth
In the first half, revenue was 17.17 billion yuan and profit was 5.04 billion yuan. While profit growth of 10.1% didn’t keep up with revenue growth of 23.8%, cost and operating pressures are becoming more apparent. Still, the overall scale is undeniably staggering. It isn’t “failing”—it’s moving from a wild, runaway growth phase into a mature stage that requires more refined operations.
▶️Overseas momentum is dropping; globalization is harder than expected
Revenue in Asia-Pacific and the Americas fell by 9.7% and 16.5% respectively, suggesting that once overseas consumers got past the novelty period, their enthusiasm cooled. In contrast, domestic growth rose by 47.3%, meaning the core base remains extremely solid.
▶️IP rotation is fast; cash generation and inventory coexist
LABUBU revenue fell by 7.5%, while Star People surged nearly sixfold to take the No. 2 spot. This shows Pop Mart still has the ability to “create stars.” But if new IP lifecycles are too short, inventory and turnover pressure will keep increasing.
✍️Where will it go from here?
▶️Focus on experience
Relying on blind boxes alone can’t extend the lifecycle for long. It will accelerate combining with theme parks, offline experience flagship stores, and higher-tier derivatives to capture premium value.
▶️Go deeper
For overseas, online channels with low efficiency will be scaled back. The company will open more large stores in core landmarks to build brand sedimentation.
▶️Re-rate valuation
The capital markets will no longer assign it high-tech valuations for “breakout hits.” Instead, it will return to being valued under the standard for traditional consumer retail companies.
As long as the chain of IP handoffs doesn’t break, it can still remain a leader. But the past “doubling every time” growth myth is, realistically, hard to replicate.
DYOR
Based on the latest financial report, Pop Mart is at a turning point
▶️Growth is slowing, but it’s still a huge behemoth
In the first half, revenue was 17.17 billion yuan and profit was 5.04 billion yuan. While profit growth of 10.1% didn’t keep up with revenue growth of 23.8%, cost and operating pressures are becoming more apparent. Still, the overall scale is undeniably staggering. It isn’t “failing”—it’s moving from a wild, runaway growth phase into a mature stage that requires more refined operations.
▶️Overseas momentum is dropping; globalization is harder than expected
Revenue in Asia-Pacific and the Americas fell by 9.7% and 16.5% respectively, suggesting that once overseas consumers got past the novelty period, their enthusiasm cooled. In contrast, domestic growth rose by 47.3%, meaning the core base remains extremely solid.
▶️IP rotation is fast; cash generation and inventory coexist
LABUBU revenue fell by 7.5%, while Star People surged nearly sixfold to take the No. 2 spot. This shows Pop Mart still has the ability to “create stars.” But if new IP lifecycles are too short, inventory and turnover pressure will keep increasing.
✍️Where will it go from here?
▶️Focus on experience
Relying on blind boxes alone can’t extend the lifecycle for long. It will accelerate combining with theme parks, offline experience flagship stores, and higher-tier derivatives to capture premium value.
▶️Go deeper
For overseas, online channels with low efficiency will be scaled back. The company will open more large stores in core landmarks to build brand sedimentation.
▶️Re-rate valuation
The capital markets will no longer assign it high-tech valuations for “breakout hits.” Instead, it will return to being valued under the standard for traditional consumer retail companies.
As long as the chain of IP handoffs doesn’t break, it can still remain a leader. But the past “doubling every time” growth myth is, realistically, hard to replicate.
DYOR