On September 3, 2024, we decided to add Pop Mart International (HKG:9992) to our Asia Investor portfolio at MarketScreener. Eight months later, the decision has proven to be very fruitful: the stock now shows a capital gain of 325%. Let’s take a look back at the reasons behind this investment, which today confirm its relevance.
A unique business model that captures the spirit of the times
Pop Mart doesn’t just sell toys — it sells an emotional experience. Its signature “blind box” concept, where customers buy a sealed box without knowing which figurine is inside, taps into the thrill of surprise and the appeal of scarcity. This mix of chance and carefully managed rarity drives both impulse purchases and a strong collecting culture. Much like loot boxes in video games or rare Pokémon cards, each unboxing creates a moment of suspense and excitement. This original approach has helped Pop Mart build a loyal, growing community of fans around the world.
Powerful intellectual property and a global brand image
Our decision was also driven by the strength of the brands Pop Mart has built. In just a few years, characters like Labubu, Skullpanda, Molly, and Dimoo have become pop culture icons among Generation Z and “kidults” — adult toy collectors. The Labubu universe, in particular, has taken Pop Mart to another level, with its products spotted in the hands of celebrities like Rihanna and Lisa from Blackpink. This visibility has fueled a global craze, amplified across TikTok, Instagram, and YouTube.
Rapid geographical expansion
One of the main reasons behind our acquisition was Pop Mart’s strong international ambition. Already a major player in China, the company has quickly expanded across Southeast Asia, Europe, and the United States. It now operates over 450 stores in more than 100 countries, including flagship locations with high symbolic value, like inside the Louvre in Paris and on Oxford Street in London. This growing global footprint not only boosts brand recognition but also diversifies its revenue streams.
Remarkable financial performance
Pop Mart’s financial fundamentals were already solid by September 2024, but momentum has accelerated sharply since then. Revenue more than doubled in 2024 (+106.9%) to RMB 13.04 billion, while adjusted net income surged 185.9% to over RMB 3.4 billion. The gross margin now stands at 66.8%, an exceptional figure for a company selling physical products. Operational efficiency has also improved, with inventory turnover dropping from 133 to 102 days. The latest quarterly results confirm this strong trajectory: in Q1 2025, revenue jumped 170%, with nearly 480% growth outside mainland China. Online sales also rose by 145%, highlighting the success of Pop Mart’s omnichannel model, which combines automated roboshops, concept stores, direct e-commerce, and partnerships with TikTok Shop and Shopee.
Strong alignment with shareholders
Finally, another factor strengthened our conviction: founder and CEO Wang Ning still owns nearly 45% of the company, ensuring a strong alignment of interests between management and shareholders. This gives us greater confidence in Pop Mart’s governance and its ability to drive long-term growth while navigating market volatility.
A success story in the making
Pop Mart is no longer just a toy manufacturer — it has become a global cultural force, sitting at the crossroads between Disney, LEGO, and Games Workshop. With full control over its intellectual property, a strong omnichannel strategy, and a creative vision closely aligned with the expectations of new generations, Pop Mart has firmly positioned itself as a global leader in premium toys and collectible entertainment.