Labubu-maker Pop Mart learns from Disney to capitalise on toy’s viral success
China’s Pop Mart 9992.HK is borrowing from Disney’s DIS.N playbook to turn toothy monster Labubu’s blockbuster sales into long-term success, Executive Director and co-COO Si De told Reuters in a rare interview.
Pop Mart has already done what many thought impossible – making Labubu the first Chinese product to win a global audience for its emotional and creative appealrather than because it represents value-for-money.
Now it aims to capitalise on the art toy’s success.
“We have learned from Disney for a long time. In fact, Disney’s great value lies in its ability to operate IP (intellectual property) over the long-term, even up to 100 years,” Si said, pointing to the example of Mickey Mouse, created as a cartoon nearly a century ago.
Even as analysts question Pop Mart’s reliance on Labubu and the company’s fate as the toy’s popularity inevitably cools, the firm itself still sees plenty of potential to develop content, entertainment, theme parks and more merchandise around the character – as Disney does with its most popular IP.
Si did not give a timeline or estimate on investment during the first interview a top executive from the firm has done with foreign media since 2022.
He said Pop Mart’s focus in the near-term was not to find the “next big hit” but to invest in “better products, finding better collaborations, developing content, theme parks, store displays” for Labubu, and the eventual goal was to have five to 10 IPs with similar long-term potential to Labubu.
THE LABUBU PARADOX
Labubu’s global success has sent the Hong Kong-listed company’s shares up almost 200% so far this year, and Pop Mart is now worth more than Hasbro, Mattel and Sanrio combined.
“Pop Mart is selling a lifestyle that consumers are buying because they want to be part of it,” said Louis Houdart, China managing partner at Mad, a consulting firm, adding that its margins rivalled some luxury brands.
It has also fuelled investment in China’s red-hot art toy industry, intensifying the competitive pressure on Pop Mart, the market leader.
Estimates in July from Industry World, a Chinese market intelligence platform, said the Chinese art toy market was expected to reach more than 120 billion yuan ($16.85 billion) in revenue this year, accounting for more than 35% of the global market and maintaining double-digit growth in China.
Though Pop Mart does not break out Labubu sales, the series it belongs to, The Monsters, accounted for almost of total first-half revenue this year, raising questions about the company’s dependence on the character.
Labubu’s popularity has boosted sales of stablemates such as Molly, Skullpanda and Crybaby (which each had more than 1 billion yuan in sales in the first half), but also fuelled curiosity beyond Pop Mart’s offerings.
“Because of the success of Pop Mart, there are more people with money wanting to invest in this industry. You see right now there’s a lot of new companies and there’s definitely more and more artists trying to do IP as a way of making money,” said Runyu, the 24-year-old winner of China’s first art toy design competition reality TV show.
Other major art toy retailers in China include 52 Toys and Miniso 9896.HK, which traditionally relied on licensing IP from the likes of Disney and Sanrio 8136.T but is now investing more in original IP development and signing partnerships with art toy designers.
“Pop Mart has blazed a trail” for the rest of China’s art toy industry, said Zhou Junyu, head of IP at Siguworks, one of the art toy companies working with Miniso.
As Pop Mart has studied Disney, other firms in China have studied Pop Mart. Whether the Disney model will help it see off the growing competition remains unclear.
“We all know Disney’s playbook, which overall is relatively easy to replicate, but its success is not,” said Morningstar analyst Jeff Zhang. “I mean, compared to the legacy IP operators like Disney and Sanrio, Pop Mart still has a long way to go and during the process, there is also execution risk.”
FOUNDATION FOR SUCCESS
Pop Mart’s success with Labubu did not happen overnight, and was largely due to strategic decisions taken by founder and CEO Wang Ning over the past decade, three current and former Pop Mart employees said. They declined to be named because they were not authorised to speak to the media.
In 2010, Wang, only 23 but with a string of entrepreneurial ventures behind him, opened a hip lifestyle store in Beijing.
Within a few years he saw collectible figurines accounting for a significant portion of revenue, and decided to focus on art toys.
Wang also realised Pop Mart needed to own the IP it sold, according to two former employees, leading him to Kenny Wong – the designer of Molly, with her distinctive pouty face.
Hong Kong-based Wong was dismissive when Wang first approached him in 2016, but he eventually agreed to a trial collaboration.
“During my most difficult years, inventory was my biggest concern, then Wang Ning showed up. He first solved my inventory problem, selling out all of it in a short period of time,” Wong told Reuters. Wong handed regional licensing for Molly over to Pop Mart and the success continued. Labubu made its Pop Mart debut in 2019.
“Each time, they achieved remarkable results and progress, so much so that I finally gave them everything I had,” Wong said.
Pop Mart’s “blind box” retail strategy – where consumers buy packages for around $10 to $20 without knowing exactly which toy is inside – and its focus on characters with appeal to young women, a high-spending consumer group that had previously been largely overlooked by the art toy industry, were the twin foundations of its success, the Pop Mart insiders told Reuters.
“I wouldn’t say they have the model 100% right, that every IP is going to be a hit, but I think with the experience they have, they will get it right more than most,” one said.
Shows
See AllAM Live
AM Live is NTV's morning current affairs show that sets the agenda for the day with insightful panels every weekday.
Business Redefined
Business Redefined is Kenya’s premier thought leadership platform for unpacking matters regarding economic and finance policy as well demystifying complex developments in the region’s capital markets.
Comedies
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Creatives & Coins Podcast
A podcast that dives deep into the vibrant and rapidly evolving digital creative economy in Kenya. This show explores the lives, challenges, and triumphs of individuals who are successfully navigating the gig and creative economies. From digital artists and content creators to freelance writers and tech entrepreneurs, we spotlight the voices that are shaping the future of work in Kenya.
Documentaries
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Entertainment
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Fixing The Nation
Fixing the Nation is a bold and groundbreaking show that will take an unflinching look at challenges facing the Kenyan society and the solutions that can move us forward. It is anchored by respected journalists Eric Lattif, Janet Mbugua, and Mariam Bishar. Podcast created by: Nation FM
Fixing the Nation
Fixing the Nation is a bold and groundbreaking show that will take an unflinching look at challenges facing the Kenyan society and the solutions that can move us forward. It is anchored by respected journalists Eric Lattif, Janet Mbugua, and Mariam Bishar
Full Episodes
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Gumzo La Sato
Gumzo La Sato is a live social issues show that aims to create awareness about issues affecting the larger society. The discussions range from Parenting, Marital bliss and struggles, Oppression, violence, and all matters of the Heart.
Health Diary
Health Diary is a weekly show that highlights different types of diseases/conditions and seeks ways to prevent, treat/manage them. The show debunks this through real life stories and also feature specialists in different fields, to offer medical advice on the same.
Letter To My Younger Self
Letter To My Younger Self is a podcast where guests get to write a letter to their younger self, from which Maxine formulates questions to ask them during the hour-long show.
Nation Reports
Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories.
One Health Lens Podcast
Discussing health matters and human stories from Kenya and across Africa. We talk big picture from people to policy, ecosystems, and everything in between. Follow us on LinkedIn: https://www.linkedin.com/company/onehealthlens
Paradise Lost
Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between.
Primetime
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Speaking of GEN Z
Speaking of Gen Z brings you entertaining but meaningful conversations about a generation that is trying to navigate through adulthood. Join hosts Michelle, Jackie and Esther as they unravel all things Gen Z.
Sport On
Sport-On is a 30-minute sports magazine show on NTV and 3 hours on NATION FM. The show seeks to give the sports “fanatics” and “funatics” comprehensive and in-depth coverage of sports both locally and internationally.
Tech-over
The extent of technological growth is beyond mere acknowledgment; it has seamlessly integrated into our daily existence. A few years ago, the notion of paying electricity bills through mobile money or recharging with 'tokens' in Kenya seemed inconceivable. Online product sales were considered distant, and artificial intelligence is rapidly reshaping various facets of our lives. Amidst these technological leaps, those with a solid understanding of tech can navigate challenges, seize opportunities, and build a sustainable livelihood. Tech over Show aims to be the platform facilitating discussions among thought leaders, innovators, tech companies, and the government, addressing challenges and opportunities in Kenya's thriving tech industry.
Thamani
Thamani is a business show which is dedicated to emerging issues regarding micro, small and medium size businesses.
The Politalk podcast
This is The Politalk podcast. Here we look into the ins and outs of everything Kenyan politics. We pull no punches and have no reason to sugarcoat anything that matters to Kenyans.
The Trend
A two-hour-long live show that airs on Fridays. The show focuses on what is current in the entertainment industry, controversial and popular across all media platforms targeting those aged between 25 and 35 years.
The trend podcast
The trend podcast highlights and captures the best of banter from #TTTT segment that airs every Friday on NTV. It's the TTTT EXTRA
The Wicked Edition
The Wicked Edition with Dr. King’ori seeks to address serious issues through humour and relatable wit. It is a two-part half hour show filmed in front of a live audience
Trending
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Twende
Twende is a travel show that highlights beautiful, unique, diverse locations, people, and cultures. The show offers fresh perspectives on familiar locations and memorable experiences in new ones.
Unscripted
This Saturday evening lifestyle show lets viewers share their stories and life experiences as openly & honestly for the purpose of shifting the culture of silence.
VIP Access
VIP ACCESS is Anyiko Owoko’s YouTube and podcast show on Music and Culture dedicated to promoting Africa’s most promising talent and creatives. This podcast grants you VIP access into timeless interviews while providing a platform for rising as well as established artists across the continent. Since launching in 2018, Anyiko has interviewed over 70 African music stars.
WADR
This weekly news show aims to have all sides of debate but not be constrained by it, listen to main voices in the contest but not allow them to hold the viewers hostage, entertain debate but allow push back with all due respect.
When death do us part
In this podcast, three widowers openly speak about the process of grief, how they found themselves exposed to the emotional turmoil of losing their wives, and how society still does not know how to deal with them.
Your World
Your World is a health, wellness and variety show. It provides a platform for audiences and experts to share their experiences on how to improve or manage health issues, across Kenya and the Africa region.