On 19/8, Chinese toymaker Pop Mart announced its revenue for the first half of the year increased by more than 200% compared to the same period last year, reaching 13.8 billion CNY (nearly 2 billion USD). Net profit also increased by nearly 400% to 4.5 billion CNY. Both figures significantly exceeded the company's forecasts from last month.
Pop Mart's success is attributed to the rising demand for toys and its strategic shift towards international markets with higher profit margins.
This news led to an 8% increase in Pop Mart's stock price on the Hong Kong stock exchange. Since the beginning of the year, the stock has risen by over 200%. This has pushed the Chinese toymaker's market capitalization higher than giants like Mattel (the maker of Barbie dolls) and Sanrio (the maker of Hello Kitty).
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A Labubu doll outside a Pop Mart store in Shanghai. Photo: Reuters |
A Labubu doll outside a Pop Mart store in Shanghai. Photo: Reuters
Pop Mart often sells its toy collections as "blind boxes". Buyers don't know which product they've received until they open the box.
One of the biggest drivers for Pop Mart is Labubu. This character, a small monster with sharp teeth, was created by Hong Kong artist Kasing Lung in 2015 and has become a collector's craze in many places. Lisa (a member of the group Blackpink), singer Rihanna, and former soccer star David Beckham have all purchased these dolls.
In an interview with Chinese media last month, Pop Mart CEO Wang Ning predicted that Labubu sales would exceed 10 million units per day starting in September of this year.
Pop Mart classifies Labubu under the "The Monster" group. Products in this group generated 4.8 billion CNY in the first half of the year, contributing nearly 35% of total revenue. Pop Mart said it would continuously increase the supply of Labubu dolls, which are currently sold out globally.
The company currently has 571 stores worldwide, 40 of which were opened in the first half of this year. They also have nearly 2,600 vending machines in 18 countries and territories.
In the first half of this year, Asia-Pacific (excluding China) was Pop Mart's largest overseas market. Revenue from this market more than tripled compared to the same period last year, reaching 2.85 billion CNY. The US was the second largest overseas market, with revenue increasing 11 times to 2.26 billion CNY.
Ha Thu (Reuters, CNBC)
