Case Details
World’s Pop Mart: Pop Mart’s Intellectual Property (IP) Playbook
Founded in Beijing in 2010, Pop Mart has built a scaled, global business around
discovering, developing, and commercializing character IPs through an omni‑channel
model (flagship retail, roboshops, and online). Revenues rose from CNY 2.5bn in 2020
to CNY 37.1bn in 2025, while profit increased from CNY 524mn (21% margin) to CNY
13.0bn (35% margin) over the same period. A pivotal growth engine has been Labubu
(from The Monsters series, licensed from Hong Kong designer Kasing Lung), whose
breakout since 2024—amplified by plush formats and celebrity visibility—propelled The
Monsters from CNY 368mn (2023) to CNY 3.0bn (2024) and CNY 14.2bn (2025).
The case traces Pop Mart’s IP playbook, its omni‑channel distribution, and globalization
strategy culminating in rapid store rollouts and surging overseas revenue. It surfaces
critical tensions: managing hype vs. longevity, supply ramp vs. scarcity premiums, artist
integrity vs. commercial appeal, counterfeits/resale dynamics, and content extensions
intended to convert hits into evergreen IPs.
By early‑2026, a price correction in Labubu’s resale market and a ~50% share price
pullback raised sustainability questions. Management doubled down on
evergreen‑ization—theme park expansion, Labubu music/series/feature film, and global
brand moments (Macy’s Thanksgiving Parade). Meanwhile, Crybaby and Twinkle
Twinkle emerged as promising follow‑ups.
Learning Objective:
- Dissect a cultural IP growth engine: analyze Pop Mart’s IP funnel (shows, external scouting, incubation), commercialization trade‑offs (artist vision vs. market data), and portfolio governance (S/A/B/C resource matching by ROI & locale).
- Assess omni‑channel design for discovery, conversion, and lifetime value of IPs: flagship stores for immersion, roboshops for high-reach/low‑capex signals, and Pop Draw to digitize ‘blind box’ experience while capturing first‑party data.
- Evaluate brand globalization sequencing (east to west, JV to direct), location strategy, and how local celebrity/culture act as accelerants (e.g., Thailand/Lisa trigger).
- Manage hype cycles vs. evergreen brands: set supply policy, cadence (monthly launches), format innovation (plush), collabs, and content extensions to extend IP life while limiting over‑exposure and counterfeits.
- Design strategy for a sustainable IP business: allocate capital across Labubu vs.next‑wave IPs (Crybaby, Twinkle Twinkle), China vs. overseas, stores vs. digital vs.media, and define KPIs for resilience.