Deep Analysis of Pop Mart's IP Operation Strategy: Can It Replicate Tencent's 'Hit Capture' Model?

Pop Mart has built an IP matrix operation system that is

yet equally efficient. Their underlying logic is similar——but there are fundamental differences in .

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Pop Mart’s core competitiveness lies in its systematic artist discovery and cultivation mechanism:

• Top Master Layer
  : Long-term deep partnerships with established artists like Kenny Wong (MOLLY creator) and Long Jiasheng (Labubu creator) ensure continuous output of top-tier IPs
• Backbone Layer
  : Collaborations with over
  200 artists
  globally [1], covering illustration, sculpture, digital art, and other fields
• New Generation Reserve Layer
  : Ongoing discovery of emerging creators via events like the “Pop Mart Design Contest”, global art school partnerships, and toy exhibitions (PTS) [1]

This three-tier structure of

guarantees a steady stream of IP creation.

Market concerns about ‘IP obsolescence’ are overly pessimistic based on historical data:

• MOLLY Case
  : Sales grew from
  40 million yuan to 2 billion yuan
  between 2017 and 2024, with an annualized growth rate of 76% [1]
• Labubu Boom
  : THE MONSTERS series generated
  4.81 billion yuan
  in H1 2025, up 668% YoY, accounting for 34.7% of total revenue [2]
• Multi-IP Pattern Established
  : In H1 2025,
  5 IPs exceeded 1 billion yuan in revenue
  (THE MONSTERS, MOLLY, SKULLPANDA, CRYBABY, DIMOO) and
  13 IPs exceeded 100 million yuan
  [2]

The key insight: Pop Mart has transitioned from

to :

Time Period	Head IP	Strategic Significance
2016-2019	MOLLY	From 0 to 1, building brand awareness
2020-2022	SKULLPANDA, DIMOO	Breaking single IP risk
2023-2025	THE MONSTERS (Labubu)	Global breakthrough, enhancing social currency attributes
2025-	CRYBABY, HIRONO, Xingxingren, etc.	Healthy multi-IP matrix

: MOLLY still achieved 1.36 billion yuan in revenue in H1 2025, up 73.5% YoY [2], proving classic and emerging IPs can rather than simply replace each other.

Pop Mart demonstrates rare

:

• New Launch Frequency Control
  : Reduced annual new IP series from
  5-6 to 3-4
  to avoid overconsuming IP value [1]
• Head IP Rhythm
  : Only 1-2 new series per quarter, extending lifecycle via blind boxes, MEGA collection series, and derivatives
• Polishing Cycle
  : Skullpanda took
  2 years
  from signing to launch, with its first series “M密林古堡” having a 2-year lifecycle—far exceeding the industry average of 9-12 months [1]

This

dual-track model ensures IP quality while maintaining market freshness.

---

Dimension	Tencent Games	Pop Mart	Core Difference
Organizational Structure	Four studio groups (TiMi, Lightspeed & Quantum, Morefun, Aurora)	Three-tier artist echelon (Top + Backbone + Reserve)	Tencent: Internal team competition; Pop Mart: External artist collaboration
IP Acquisition	Investment & mergers (100% Riot Games, 40% Epic, 11.5% Bluehole, etc.) [3]	Artist signing (exclusive buyout/royalty/regional licensing) [1]	Tencent: Capital acquisition; Pop Mart: Creative collaboration
Track Layout	Multi-category coverage (MOBA, FPS, RPG, SLG, etc.)	Multi-style coverage (cute, dark, ugly-cute, healing, etc.)	Tencent: Gameplay track; Pop Mart: Emotional track
Update Mechanism	Continuous content updates for evergreen games (Honor of Kings for 9 years)	IP series iteration + cross-border co-branding + category expansion	Tencent: Game content operation; Pop Mart: IP image operation
Success Probability	14 evergreen games with over 4 billion yuan in revenue [4]	10 IPs with over 100 million yuan in sales (2023), 13 IPs (2025) [2]	Tencent: High investment-high return; Pop Mart: Low-cost trial & error

:<br>

• Long Development Cycle
  : 3-5 years and hundreds of millions of dollars for a 3A game<br>
• Low Success Rate
  : Most projects fail; a few hits cover all costs<br>
• Long-term Operation
  : Successful games can run for 5-10 years (Honor of Kings launched in 2015, now in its 9th year)<br>
• From Horse Race to Horse Care
  : TiMi Studio Group adjusted to “4+2” model (J1/L1/J3/T1+Z1/G1) in 2025, shifting from internal competition to specialized deepening [4]

:<br>

• Short Development Cycle
  : 6-12 months from design to launch for new IP series<br>
• Low Trial Cost
  : Relatively low investment per series allows rapid trial and adjustment<br>
• Volatile IP Lifecycle
  : Single IP peak热度 lasts 1-3 years, but smoothed via lifecycle extension and multi-IP relay<br>
• Global Synchronization
  : Labubu’s global boom in 2024-2025 benefited from social media (Rihanna, Beckham endorsements) and TikTok [2]

Pop Mart

Tencent’s model due to:

1. Different IP Nature
   :<br>
   • Game IP relies on
     continuous content updates
     (new heroes, maps, gameplay)<br>
   • Toy IP relies on
     image iteration
     and
     emotional resonance
     <br>
   • Games are “service products”; toys are “emotional products”

2. Artist vs. Studio Dependency
   :<br>
   • Tencent controls creativity via
     internal studios
     (high replicability)<br>
   • Pop Mart relies on
     external artists
     (unpredictable individual creativity)<br>
   • Variables: Artist inspiration, output capacity, commercial collaboration willingness

3. Risk Diversification Mechanism Differences
   :<br>
   • Tencent:
     Multi-studio parallelism
     +
     global studio investments
     <br>
   • Pop Mart:
     Multi-IP parallelism
     +
     global market expansion
     (over 40% overseas revenue in H1 2025, 1142% growth in Americas) [2]

---

Pop Mart has built a

:

1. Artist Discovery
   : Toy exhibitions, design contests, online recruitment, global art school partnerships [1]
2. IP Screening Criteria
   : Prioritize “emotional resonance” over design ability (e.g., Hirono’s “loneliness”, Little Sweet Bean’s “healing”, Labubu’s “ugly-cute rebellion”) [1]
3. Commercial Empowerment
   : Full support for artists (design guidance, supply chain, marketing) to lower commercialization barriers [1]
4. Data-Driven Optimization
   : Collect consumer feedback via membership system (59.12 million registered members), robot stores, and e-commerce platforms for rapid iteration [2]

This system turns

into , increasing new IP success rates.

Overseas business boom in H1 2025:

Region	Revenue	YoY Growth	Strategic Focus
China	8.28 billion yuan	135.2%	Enhance customer experience
Asia-Pacific	2.85 billion yuan	257.8%	Refined operation
Americas	2.26 billion yuan	1142.3%	Focus on U.S. market
Europe & Others	480 million yuan	729.2%	Deepen regional headquarters

:<br>

• TikTok Shop U.S. monthly sales jumped from $429k (May 2024) to $4.8 million (YoY +1018%) [2]<br>
• Labubu’s global success: Star endorsements (Rihanna, Beckham) and “bag hangers” social attributes [2]<br>
• Globalization extends IP lifecycle (different market adoption timelines)

In H1 2025,

(first time exceeding figurines) [2], marking Pop Mart’s evolution beyond traditional toys:

• MEGA Collection Series
  : Higher price points for collectors
• Plush Toys
  : 1289% YoY growth to 2.83 billion yuan in 2024 (fastest-growing category) [2]
• Accessories, Blocks, Derivatives
  : Expand scenarios and price ranges
• Theme Parks
  : IP monetization via physical stores (e.g., Shanghai HIRONO flagship store) [2]
• Mobile Games & Animation
  : Explore IP entertainment to build richer IP universes

This

ecosystem approach evolves Pop Mart from a “toy company” to a “global cultural entertainment giant” [1].

---

Despite multi-IP claims, THE MONSTERS series accounted for

in H1 2025 [2]:

• Search Index Warning
  : JPMorgan report notes 5% drop in Labubu search interest (still 13x KAWS, 2.5x Hello Kitty), but mature IPs typically have 10-20% of peak search volume [5]
• Market Concerns
  : Analysts warn Labubu’s boom may fade like Beanie Babies in the 1990s [6]
• Stock Price Volatility
  : 40% drop from 2025 peak reflects worries about Labubu’s sustainability [6]

: Can other IPs fill the gap when Labubu’s热度 naturally declines?

Potential risks in artist collaboration models:

• Diverse Collaboration Models
  : Exclusive buyout, royalty, regional licensing may lead to inconsistent artist incentives
• Uncontrollable Creativity
  : Inspiration fluctuations, personal brand controversies, collaboration issues may affect IP output
• Intensified Talent Competition
  : Toy industry growth gives artists more options—Pop Mart needs to enhance attractiveness

Challenges from rapid overseas expansion:

• Quality Control Issues
  : Scale growth has led to quality concerns; company optimizing processes and hiring professionals [7]
• Cultural Differences
  : Varying IP acceptance, aesthetics, consumption habits require refined localization
• Supply Chain Pressure
  : JPMorgan notes supply shortages for Labubu and Crybaby due to overloaded OEM production [5]

---

Pop Mart’s IP matrix strategy is

:

1. MOLLY’s Longevity
   : 40 million to 2 billion yuan in sales (2017-2024) proves IP sustainability
2. Labubu’s Boom
   : 4.81 billion yuan in H1 2025 (global breakthrough)
3. Multi-IP Matrix
   : 5 IPs over 1 billion yuan, 13 over 100 million yuan (effective risk diversification)
4. Overseas Boom
   : 1142% growth in Americas (second growth curve established)

: Market concerns about “single IP dependency” are overstated—Pop Mart has built a “one super, multiple strong” healthy pattern.

Dimension	Tencent Games	Pop Mart	Evaluation
Hit Capture Capability	★★★★★	★★★★☆	Tencent is more mature; Pop Mart is catching up
Risk Diversification	★★★★★	★★★★☆	Tencent: Multi-studio + investments; Pop Mart: Multi-IP + globalization
Sustainability	★★★★★	★★★★☆	Games have stronger long-term operation; toy IP lifecycle is more volatile
Replicability	★★★★★	★★★☆☆	Tencent has higher industrialization; Pop Mart relies on individual artists
Globalization Potential	★★★★☆	★★★★★	Toy culture has lower threshold and greater potential

: Pop Mart —its “artist collaboration + IP matrix + globalization” path is effective, even more advantageous in globalization.

:<br>

1. Labubu 4.0 Series
   : Mini Labubu launch in 2025—CEO Wang Ning calls it “a potential super hit” [8]<br>
2. New IP Incubation
   : Can CRYBABY, HIRONO, Xingxingren take over growth?<br>
3. Overseas Expansion
   : Sustained growth in Americas/Europe, TikTok channel expansion<br>
4. Category Expansion
   : Non-figurine categories (plush, MEGA, accessories) share increase

:<br>

1. Unexpected Labubu Decline
   : Monitor search index and sales data
2. New IP Underperformance
   : Failure to relay may revert to single IP dependency
3. Intensified Competition
   : Domestic rivals (52TOYS, TOPTOY) and global giants (Hasbro, Mattel) entering toy market
4. Regulatory Risks
   : Tighter blind box regulations (e.g., China SAMR requires probability disclosure, bans sales to under-8s) [1]

JPMorgan forecasts

, giving a target price of HK$340 [5]. Macquarie expects 2025 revenue of (non-IFRS…)