When LABUBU—a forest sprite sporting nine sharp teeth—flashed its trademark mischievous grin in the window of London’s Harrods, global consumers witnessed a strategic leap by a Chinese trendy toy company. According to POP MART’s 2024 financial report, the IP series THE MONSTERS, created by Hong Kong artist Long Jiasheng, generated 3.04 billion RMB in revenue for the year—a sevenfold year-over-year increase that has eclipsed the company’s classic IP, MOLLY, to become its primary revenue engine. This figure implies that the value generated by a single virtual character now equals five times the annual income of top celebrity Wang Yibo at the peak of his career.
Inside POP MART stores, consumers attaching LABUBU plush pendants to their bags confirmed Morgan Stanley analyst Dustin Wei’s observation: “The ‘show-off’ quality has viral potential.” In 2024, the company’s plush segment revenue surged thirteenfold to 2.81 billion RMB, comprising 21.5% of total revenue—a testament to how a firm once pigeonholed as a “blind box company” has successfully tapped into the adult plush toy market.
This transformation is deeply rooted in shifting social psychology. “The pressures of reality drive adults to seek solace in plush toys,” explained POP MART’s Chief Operating Officer, Si De. Data from 2023 reveals that the Kidult demographic—consumers aged 12 and above who retain a childlike spirit—surpassed preschool children for the first time, accounting for 52% of the plush toy market. POP MART further categorizes Kidults into two subgroups: Generation Z, driven by social display, and urban professionals, who seek emotional comfort. Product designs increasingly reflect this shift, with features like ita-bags (display backpacks) and portable companionship elements gaining traction.
An immersive experience at Tokyo’s Harry Potter Studio led Si De to a crucial insight about intellectual property: “Consumers are willing to pay for products that stir their emotions.” This realization prompted POP MART to initiate an organizational reform in 2022, splitting its product department into independently operating teams—the MEGA Group, the Plush Group, and the Block Group—each adopting an entrepreneurial approach to deeply cultivate its vertical niche.
The independent operation of the Plush Group proved to be a pivotal turning point. When designers applied rubber crafting techniques to LABUBU’s face, transforming it into a portable pendant, the product quickly ignited social media. An uncompromising attention to detail was evident: HIRONO, a signature POP MART IP created by designer Lang, had its eye components separately molded using multilayered transparent resin spraying techniques to achieve a “moist look,” enhancing the character’s signature lonely and sensitive expression. Meanwhile, the crown’s tip underwent a vacuum electroplating process to create a mirror-like reflective surface, drawing visual focus. A collaborating factory manager remarked, “If you can complete an order for POP MART, you are capable of handling any trendy toy production.”
Behind North America’s 720 million RMB in revenue—a 5.6-fold growth—lay a systematic strategy: test the market with vending machines, launch pop-up stores on the West Coast, and ultimately open the first permanent store in September 2023 at the American Dream Mall in New Jersey. Si De’s team identified hidden opportunities within the highly standardized U.S. retail landscape: “Once you understand the rules, replication can be more efficient than expected.” Through renegotiations, they reduced store rent to 60% of the initial quote.
Localized innovation has continued to emerge. An 8-meter-tall sculpture of HIRONO at the Aranya Solitude Library, as well as an auto-boxing experience that went viral on TikTok, are reshaping the pathway for Chinese IPs to venture abroad. The launch at the end of 2023 of Peach Riot—POP MART’s first IP collaboration with a U.S.-based artist—further validated the potential of cross-national creative endeavors. The punk-inspired trio of fictional musicians, Poppy, Gigi, and Fronkie, embody themes of rebellion and identity exploration. With 14,000 units sold in its first month, the IP has expanded into blind boxes and apparel, demonstrating a fusion of youthful defiance with collectible culture.
At POP MART City Park in Beijing’s Chaoyang Park, a theatrical performance titled The Dance of the Great Chief is transforming ZIMOMO into a cultural symbol. As the leader of THE MONSTERS series, ZIMOMO has transcended its figurine form through large-scale installations, such as an 8-meter-high gravel sculpture at the Aranya Solitude Library, further reinforcing its immersive experience appeal. This shift from a 10-centimeter collectible to an interactive performance reflects the company’s broader ambition—establishing a film studio, preparing an animated series, and even testing game development in a bid to construct a cross-media IP ecosystem.
“Our core lesson from Disney is the importance of continuous investment,” Si De emphasized at the year-end meeting. With HIRONO now showcased in an independent gallery at the Louvre and long queues forming at POP MART’s flagship store in Spain, CEO Wang Ning’s judgment is affirmed: “When an IP becomes a cultural symbol, the corporate lifecycle extends beyond the cycles of physical product iterations.”
Despite a tenfold increase in stock price and products selling out within seconds, management remains acutely aware of potential pitfalls. At a performance meeting, Wang Ning warned, “In times of prosperity, one must be even more wary of complacency in innovation.” This heightened sense of urgency stems from 2022’s hard lessons—when design homogenization led to the premature demise of several new IPs, forcing the company to revamp its creative process.
As LABUBU received a welcome from the Thai Tourism Minister and sparked buying frenzies in London, POP MART now faces deeper challenges: how to balance artistic creation with commercial demands, and how to preserve the cultural essence of its IPs during global expansion. As Si De reflected while watching his daughter’s fascination with LABUBU, “I hope this IP will accompany her for a lifetime.” This intergenerational emotional connection may well be the strongest foundation of the toy empire.