Pop Mart and Chinese stuffed animals set out to conquer the world

There is something of Pokémon about Pop Mart's strategy. You open a box without knowing what's inside and collect useless but stylish toys. A true showcase of Chinese soft power, these figurines are all the rage in the West, like few local brands before them. Are we at the beginning of the wave or approaching the decline of yet another shortlived trend?

Intrigued by toy vending machines in Hong Kong, Wang Ning launched his own brand. He focused on collectible toys, a winning bet. A few years later, thanks to partnerships with Disney, stores around the world, and a loyal fan base, Pop Mart is now worth $48bn, with net profits up 400% this half-year.

Amongst its stars are the characters from the series "The Monsters," including Labubu. Half-evil, half-endearing, these little monsters are the phenomenon of 2025. They alone account for over a third of sales, or $670m in six months. Four other in-house licenses exceed $140m in quarterly revenue.

Plush toys from Pop Mart's "The Monsters" range, including Labubu (Source: Popmart.com)

The Pop Mart craze is spreading worldwide. Thirty-somethings are paying up to $70,000 for a figurine, teenagers are scouring cities to find them, and children are begging their parents to hang one on their bags. The phenomenon is reminiscent of other collective waves that have marked this century. Everyone can find a figurine that suits them, and fashionistas are repurposing them to accessorize their looks, inspired by K-pop, Rihanna, or David Beckham.

Pop Mart is now looking to expand internationally. Sales outside China have jumped 440% and already account for 40% of half-yearly revenue. This strategy has been accelerated by internal criticism: the People's Daily, the mouthpiece of the Communist Party, has warned of the addictive nature of these "surprise boxes." In China, the repurchase rate reached 50.8% in the first half of the year. Labubu is also the most expensive in the US and Europe, the fastest-growing markets.

By the end of 2025, overseas sales are expected to exceed those of the Chinese market. By September, Pop Mart plans to sell over 10 million units per day.

Far from being a simple toy manufacturer, the group has complete control over its phenomenon, from character creation and production to distribution via its vending machines, 570 stores, and an e-commerce site that is constantly sold out.

CEO Wang Ning knows his stuff. He has studied the cute toy industry and the addictive appeal of surprise boxes at length. But how do you manage such a craze? Should you increase supply while the trend lasts to maximize profits? Or maintain scarcity and exclusivity to ensure your brands' longevity, at the risk of seeing the trend fade before you've exploited its full potential?

Only time will tell if the founder's strategic vision is up to the task. Wang Ning still holds 45% of the company's capital, an important signal for investors, as he has just become the tenth richest man in China.