Beijing: Pop Mart International Group Ltd, a China-based maker of trendy collectible toys, is banking on the new global craze surrounding its plush product series of Labubu figures, the company’s beloved intellectual property (IP) under The Monsters series.
The new limited collection has driven significant consumer engagement, with long lines at retail locations in major cities around the world, including Los Angeles and London.
The fervour surrounding Labubu has also translated into digital success.
On April 25, Pop Mart’s official app soared 114 spots in the US App Store, achieving fourth place in the overall category and top spot in shopping, according to the company.
Wang Ning, Pop Mart’s chairman and chief executive, said in its annual report for last year that Labubu’s remarkable success last year propelled The Monsters’ revenue to three billion yuan or about US$415.3mil, a 726.6% increase compared with the previous year.
The franchise now constitutes 23.3% of the company’s total revenue, making it Pop Mart’s largest IP.
This sentiment reflects Pop Mart’s strategic focus on emotional value, collectability and social attributes that resonate with a global audience.
A big part of the appeal is Labubu’s look, said Cecilia Li, a 22-year-old Chinese student in New York.
“It’s that ‘ugly-cute’ meets creepy aesthetic, with a bit of a gothic vibe,” she said.
“It’s not traditionally cute, but that’s exactly why it resonates with trendsetters here.
“Labubu just fits the US consumers’ taste better. Pop Mart – especially Labubu – is really taking off in the United States,” she added.
The company made headlines with its first quarter financial report for this year, released on April 22, posting year-on-year revenue growth of between 165% and 170%.
The surge has propelled its stock price to new heights, climbing 12.5% beyond its previous all-time high within a week of the announcement.
Revenue breakdown shows that in the first quarter, while domestic sales in China grew by between 95% and 100%, international sales soared by between 475% and 480%, with North America experiencing an eye-popping 895% to 900% increase.
During a recent conference call, Wang said he was optimistic about their market in North America reaching 2.5 billion yuan in revenue, matching the group’s total in 2020.
The company forecasts its revenue this year to grow more than 50% year-on-year, exceeding 20 billion yuan.
Its overseas revenue is expected to grow 100% this year to reach more than 10 billion yuan. — China Daily/ANN
