The Rise (And Possible Fall) of Pop Mart

Note from the author: This is a developing story. For up-to-date information and statistics, please see relevant sources.

Pop Mart. Ten years ago, virtually no one would have recognized this name. Today, it seems that this brand is everywhere: airports, train stations, shopping districts, malls, and some subway stations. If you’ve been feeling the same way, then you're not alone. It’s not a coincidence, and it’s not that you're frequenting places where Pop Mart is prevalent; it’s because of the company’s recent explosive growth.

This Chinese company has more than 400 physical stores and thousands of ‘roboshops’ (automated vending machines) worldwide. It is valued at approximately $40 billion (roughly ¥270 billion) and is one of the largest collectible toy companies in the world. According to Forbes, its founder and CEO, Wang Ning, has just become the 10th richest person in China.

And its current success can be mainly attributed to a single toy: Labubu.

In this article, we’re looking at the explosive growth of Pop Mart, its business model and why it works so well, as well as what the future holds for it.

History of Pop Mart: From Struggling Store To Global Phenomenon

Pop Mart International Group Limited was founded in 2010 by Wang Ning (who is currently CEO and chairman as well as largest single shareholder). It is listed on the Hong Kong stock exchange (one of the biggest stock exchanges in Asia), and mainly sells toys of their IP (intellectual property) as well as licensed toys. However, what if I told you it all started with an ordinary store?

Pop Mart fifteen years ago was far from what it is today; it was merely a store in Beijing’s Zhongguancun District that sold pop-culture goods, mainly aimed at trendy urban youth. Its inventory consisted of toys, comics, and phone cases, to name a few. The store was having a hard time staying afloat, so Wang sought to rebuild his business model.

With the announcement of the Sonny Angel collectibles in 2015, Wang got the inspiration he needed. Little did he know that this ‘aha!’ moment would mark the turning point of his company.

In 2016, Pop Mart shifted from retailer to IP creator with the release of the Molly series (designed by Kenny Wong). Molly also marked Pop Mart’s transition to selling ‘blind boxes’. It would continue to release multiple series in the following years, mostly designed in collaboration with individual artists.

A part of the ‘Monsters’ series, Labubu is an ‘ugly-cute’ elf-like ‘monster’ doll created by Hong Kong illustrator Kasing Lung in 2015. Four years later, it was licensed by Pop Mart and made into plush, keychain, and figurine versions. Remember the image of this doll - jagged teeth, big eyes, furry - as it will be extremely relevant later on.

How And Why Pop Mart’s Business Model Works So Well

The blind box marketing strategy itself is already very successful thanks to the genius psychology behind it.

In case you’re not familiar with how blind boxes work, here’s how. Let’s say you go buy a Labubu. As it’s a blind box, it may come in different colors, have different accessories, etc. You never know which variant you’re getting; however, you're getting a Labubu for sure.

And that combination of curiosity, suspense, and anticipation is what makes blind boxes compelling to many. This psychology is used not only in blind boxes; you’ll see it in other forms of entertainment as well, such as ‘blind box collectible playing cards’, and even gambling. It’s the same inner logic, but presented in vastly different ways.

Pop Mart definitely wasn’t the first toy company to adopt the blind box scheme, so what differentiated it from the competition? Well, it managed to elevate the concept of blind box toys to an entirely different level.

For starters, the lovable, creative, high-quality toys have a strong identity. Pop Mart successfully painted the picture that their IPs, such as Molly and Skullpanda, were much more than just cute toys; they had stories and personalities that made each of them unique art pieces worthy of collecting, a cultural icon in the making. The shopping experience in their physical stores also adds to this presentation, offering extremely immersive shopping experiences including interactive elements, displays of characters, cool packaging, etc.

In addition, the company has mastered leveraging social media, something that spells success in a world where digital platforms are gaining substantial influence over people. Unboxing videos and fans showing off their collections provided great word-of-mouth marketing for its products, helping Pop Mart build an entire online community around the collectible culture.

Things really took off for Pop Mart when, in 2024, the BLACKPINK superstar Lisa (one of the most popular K-pop stars) showed photos of a Labubu pendant on her expensive bag. It soon grew into an internet craze, and everyone wanted to get a Labubu for themselves (a psychological phenomenon known as FOMO, Fear of Missing Out). Soon, Labubu was seen paired with lavish items such as Hermès handbags, establishing the connection between cheap, affordable Labubu dolls and expensive, luxurious items. And this internet trend is the main reason why Pop Mart exploded.

What’s Next?

Although Pop Mart is still very popular and currently enjoying the height of its success, many experts believe that the Labubu trend will eventually die down. That’s the harsh truth about the business model of Pop Mart: once fans buy enough blind boxes, when the collectors have got every variant, and the celebrities move on to other trends, Labubu will likely become just another toy of the past.

But does that mean Pop Mart is doomed to fail in the long term? Not necessarily. If it manages to continue creating popular, well-loved character IPs, maintaining its loyal base of fans, and maybe expand its domain even further (such as trying out new ideas besides its main product line), who knows what the company could achieve?

Conclusion

Whether you are really into collectible toys such as Labubu or not, I’m sure you’ll agree that Pop Mart’s business strategy is well-established and creative at the same time. Do you think that Pop Mart will be able to maintain its popularity and continue expanding its business?

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