Pop Mart's Business Model Likely Challenged by High Bar for Customer Repurchases -- Market Talk

Dow Jones12-17

0428 GMT - Pop Mart's business model may face challenges amid customer fatigue following initial hype around its Labubu dolls, Deutsche Bank analyst Sammi Xu says in a research note. With less excitement around recent product launches such as mini Labubu and 145 million Labubu dolls already sold globally, the bar for customer repurchases is higher, she adds. Pop Mart's business model relies on high volumes to offset relatively low average selling prices, enabling it to achieve store productivity comparable to leading global fashion or even luxury brands, the analyst says. Increased production capacity since mid-October has eliminated product shortages and the perceived scarcity of its products, she says. "This slowdown in traffic may affect the company's high operating margin," Xu notes. Shares are 1.6% higher at HK$192.20. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

December 16, 2025 23:28 ET (04:28 GMT)

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