Early shareholders of POP MART have offloaded their holdings, drawing increased attention from capital markets. However, beyond the share sale, the company's own transformation is even more noteworthy.
Investment firm Fengqiao Capital recently announced it had fully divested its pre-IPO shares in POP MART. According to Hong Kong Stock Exchange filings, the firm cashed out over HK$2.2 billion. The returns are impressive—POP MART’s stock has surged more than 400% in the past year, pushing its market cap to HK$250 billion and making it one of the most eye-catching yet puzzling companies.
Previously, POP MART’s popularity could be attributed to the "blind box" sales model. But now, its growth strategy extends beyond that. At a deeper level, its increasing resemblance to "luxury goods" is becoming a more significant part of its business narrative.
Some consumers have remarked, "POP MART is positioning itself like Hermès." While this comparison may seem exaggerated, it might actually reflect the essence of POP MART’s current business approach.
**Moving Toward Luxury: POP MART’s "Bundling" Strategy** Securing POP MART figurines or dolls can sometimes feel as competitive as snatching tickets to a Stefanie Sun concert.
Fans must follow official accounts or join fan groups for updates, pre-fill shipping and payment details, and complete identity verification. Then comes the race against time and internet speed—some even clear their phone cache to optimize performance. Yet, success is never guaranteed.
This frenzy underscores POP MART’s popularity, driven largely by scarcity. By the end of 2024, POP MART had expanded to 401 stores and 2,300 robot kiosks in mainland China, alongside 130 stores and 92 robot kiosks overseas. Despite its growing presence, certain products remain elusive, often requiring extra effort—or money—to acquire.
One option is paying a premium on the secondary market. Another is POP MART’s official "bundling" sales tactic—a strategy borrowed from the luxury industry.
For example, a Singaporean collector of POP MART’s Labubu IP found that to purchase the third-generation product on Lazada or Shopee, he had to buy it bundled with first- or second-generation items—no discounts, just an extra purchase of an unwanted item.
This "bundling" approach, once exclusive to luxury brands like Hermès (where buyers must purchase less-desirable items to access coveted handbags), highlights a subtle parallel between POP MART and high-end brands.
International consumers have long noticed this tactic, and as POP MART expands globally, such practices are becoming more widespread. Searches reveal similar bundling cases in Thailand, the U.S., and Europe.
Domestically, the strategy takes an even more "luxurious" turn. For instance, a limited-edition collaboration between POP MART’s Hirono and VANS was offered as a gift—but only to customers who spent at least RMB 1,699 in a single transaction. Only 1,000 pieces were available across two stores, with daily limits of 200. Pre-release, the item was already reselling for nearly RMB 2,000.
**The "Luxury" Game Behind a HK$250 Billion Market Cap** Blind boxes are just a product format; "luxury" may better define POP MART’s current business essence—albeit an affordable one, meticulously designed for mass appeal.
A key factor in POP MART’s rise is its increasing association with luxury brands. Its hottest IP, Labubu—a mischievous yet kind-hearted creature—has gained global fame, particularly in Thailand, thanks to endorsements from celebrities like Lisa and even royalty. Fans often display Labubu alongside Hermès and Louis Vuitton accessories.
POP MART has actively courted this luxury image. In March, it launched an exclusive pop-up at London’s Harrods, showcasing Labubu’s "The Monsters" series. The event featured a signing session by the creator, with chances to purchase a limited London edition. It also collaborated with Dover Street Market on a 100-piece exclusive Labubu release.
Such moves elevate POP MART’s prestige. As consumers increasingly pair its dolls with luxury bags (a trend visible on Xiaohongshu), the brand gains social currency.
For high-spending clients, buying entire blind box sets is a way to collect full series—costing a fraction of luxury goods but offering comparable social value. For others, paying a premium for a few trendy items still feels worthwhile.
POP MART has long leveraged its retail environment to craft a "light luxury" vibe, often positioning stores near brands like Sephora, Lancôme, and Swarovski. Its global expansion follows a similar playbook: in South Korea and Japan, it initially occupied toy sections in department stores but aims to ascend to luxury floors.
Founder Wang Ning has likened POP MART’s appeal among tourists to French luxury, Swiss watches, or Japanese sake—products predominantly bought by visitors.
In short, blind boxes and IP alone no longer define POP MART. Its proximity to luxury has become a covert growth driver, fueling its 400% stock surge and HK$250 billion valuation.
The challenge now is balancing this "luxury" image—remaining accessible enough not to alienate the masses while maintaining enough exclusivity to justify premiums. As some consumers already feel priced out, POP MART must tread carefully to avoid overreach.
(Note: Huang Yu is a pseudonym.)
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