Analysis of Pop Mart's Trendy Toy IP Model and the Sustainability of Labubu's Global Hit Status

##1. Can the Trendy Toy IP Model Support Pop Mart to Become a Great Company?

• Long-term Structure Driven by IP Matrix.
  In H1 2025, Pop Mart’s revenue reached 13.88 billion yuan, a year-on-year increase of 204.4%; net profit was 4.71 billion yuan, a year-on-year increase of 362.8%—this “half-year surpasses full-year” performance highlights its current explosive power. The THE MONSTERS (Labubu) series contributed 4.81 billion yuan in revenue, accounting for 34.7%; the plush category overall accounted for 44.2%, jumping to the largest category with a growth rate of 1276.2%. At the same time, old IPs such as Molly and SKULLPANDA still maintained steady growth, indicating that their “IP popularity” and “commercial value” are not yet fully tied, with multiple relay lines [1].

• Operational Logic Prioritizes User Experience, Products, and Channels.
  Unlike most new consumer companies that rely on quick and easy monetization, Pop Mart is “eliminating scalpers” and, after expanding production capacity, is instead emphasizing “cultural density” and “brand momentum”: on one hand, it is releasing production capacity to return Labubu from “scarcity speculation” to more widespread natural consumption; on the other hand, through actions such as the high-end MEGA series, flagship stores in luxury shopping centers, and the appointment of Wuyue (an LVMH executive) to the board of directors, it is trying to reshape its high-end positioning with a “light luxury + art” logic, rather than relying solely on channel expansion [1].

• Globalization Empowerment and Multidimensional Boundaries.
  The company’s overseas revenue accounts for 40.3%, and it has continued to layout more than 570 stores in markets such as the Americas, Asia-Pacific, and Europe; markets like North America and Indonesia have achieved growth of over 1000 times. Domestic stores and overseas flagship stores are reshaping the “cultural landmark” image, further reducing reliance on a single market. If this “IP output + global retail” dual-drive can continue, Pop Mart is expected to gradually move towards the direction of a “global trend culture platform” [1].

• Valuation and Trust Issues Still Need to Be Broken Through.
  Although the revenue and profit data are bright, the capital market still has anxiety about its overly fast valuation expansion and over-reliance on a single IP under high valuation. The stock price has retreated more than 40% from its August high, because once the popularity of “Labubu” declines, whether core customers will stay has not yet been fully determined. If the management cannot give the market a clear and firm answer between “high growth” and “sustainable medium- and long-term strategy”, the perception of being a great company will still be difficult to consolidate [1].

In summary, the trendy toy IP model itself is replicable (through IP incubation/signing + systematic operation), and it also has mastered the path of globalization and long-term user management. However, it needs to continuously launch new IPs with “long-term recognition + high stickiness”, supplement the content ecosystem, and further gain the trust of capital and the public in strategic communication. If these links are stabilized, Pop Mart can gradually move closer to the standard of a “great company”.

##2. How to Judge the Sustainability of Labubu’s Global Hit Status?

• Life Cycle Extension Capability.
  Labubu and Honor of Kings entered their 10th year at the same time. The latter maintains vitality by continuously extending gameplay and content, while Pop Mart is also continuously extending Labubu through various forms such as new products, plush/blind boxes/high customization, allowing it to meet both “pocket consumption” and provide “artistic collection”, reflecting a systematic approach to life cycle management [2].

• Decoupling Phenomenon Between Popularity and Commercial Value.
  Currently, doubts about Labubu focus on whether it can support sales after “popularity fades”. However, actual data shows that after public opinion热度 declines, core users’ repurchase and brand loyalty remain; more importantly, the company has distinguished between “IP popularity” and “true fans”, and the remaining core group is the key to determining commercial value. If Labubu’s “popularity” enters a downward period, as long as the remaining core group still has purchase意愿, its commercial value can still be continuously released [1].

• Globalization and “High-profile” Strategy Alleviate Fatigue.
  Setting up stores in cultural landmarks such as the Louvre in Paris, Oxford Street in London, and Times Square in New York helps shape Labubu into a cross-cultural trend symbol, allowing it to enter the “global culture” narrative and weaken the popularity fluctuations in a single region. In addition, cooperating with global platforms/brands and expanding secondary IP content (such as clothing, stationery, art exhibitions) are also practical means to extend the life cycle [1].

• Several Nodes Still Need Close Monitoring
  : Growth expectations under high valuation (current P/E ratio is much higher than traditional IP leaders); whether the “cultural scarcity” feeling can still be maintained after a significant increase in production capacity; whether there are new IPs to take over when the “lipstick effect” is no longer significant and consumers return to rationality. If Labubu can continue to evolve in the three dimensions of “word of mouth + globalization + high-end categories”, its global hit status will have stronger durability; otherwise, its popularity cycle may move towards the “speculation-fade” model.

Pop Mart has established strong barriers in multi-IP matrix, user operation, and global expansion. If it can clarify one of the core paths—“global trend culture platform” or “high-end emotional consumption brand”—at the strategic level and continue to promote new IP incubation, its business model has the potential to support its growth into a great company. As a top IP, Labubu’s sustainability depends on whether it can complete the leap from “short-term hit” to “cultural symbol + high-end series”; as long as core fans are retained and globalization and high-endization are promoted in parallel, its “phenomenal” influence still has the opportunity to continue. Next, we should continue to observe the growth rate of new high-potential IPs, the operational efficiency of global stores, and the gross profit margin performance of high-end product lines to determine whether the “Labubu + IP ecosystem” combination can truly support long-term value release.

[1] 36Kr “No Need to Worry About Pop Mart” (https://m.36kr.com/p/3606730243671300)
[2] NetEase News “Labubu to Pop Mart Is Like Honor of Kings to Tencent” (https://www.163.com/dy/article/KHO5G56F05568W0A.html)