Pop Mart Charts Global Expansion and IP Diversification Beyond Labubu Phenomenon

Pop Mart’s Chief Operating Officer, Si De, recently spoke with CNBC about the strategic discipline behind the Labubu craze and the company’s plans for future growth. Despite Labubu’s rapid rise to global popularity, Pop Mart remains cautious and highly selective about which artists and intellectual properties it supports.

Labubu, a shaggy elf-monster character licensed from Hong Kong-Dutch artist Kasing Lung, was launched by Pop Mart in 2019 as part of a blind-box collection. The character’s success was not an overnight phenomenon but the result of approximately two years of dedicated design and prototyping.

Pop Mart’s revenue and net income surged 185% and 309%, respectively, in 2025, largely driven by Labubu. However, the company’s stock has retreated about 40% from its August peak, with shares dropping more than 22% following the recent earnings release. Investors remain cautious about whether Pop Mart can maintain momentum beyond the initial hype.

CEO Wang Ning addressed these concerns during the earnings call, emphasizing that "Pop Mart has more than just Labubu" and comparing the company’s rapid rise to a "rookie racing driver suddenly thrown onto an F1 circuit."

Si De explained that the longevity of any character depends on continuous investment. Drawing inspiration from Disney’s approach, he said, "When you keep making the right investments, the [intellectual property] has a chance to keep going."

Pop Mart’s strategy involves expanding globally and building immersive worlds around its characters. This includes ventures into films, theme parks, and fashion partnerships, all designed to embed characters like Labubu into consumers’ daily lives.

"Of course, we hope that Labubu can also last 80, 90, or 100 years," Si said, referencing Mickey Mouse’s near-century-long legacy. "But this road is very long."

The company’s approach to artist selection is rigorous. Each year, Pop Mart scouts artists worldwide, but only a small fraction are chosen. Those selected undergo a lengthy incubation process, including internal competition, before the company commits resources.

Si De noted that Pop Mart deliberately keeps its portfolio small, aiming to develop "four, five, maybe six IPs truly grow world-class," mirroring Disney’s model where a few key characters generate most of the value.

Founded in 2010 as a retailer of trendy products for young consumers, Pop Mart pivoted in 2016 to focus on designer toys with its first major intellectual property, Molly. Created by Hong Kong artist Kenny Wong, Molly is a wide-eyed, somewhat sullen girl who embodies uniqueness despite imperfection.

Wong first conceived Molly in 2006 after meeting a girl at a fundraiser who introduced herself loudly and looked at him with "a little bit of stubbornness and nervousness." He wanted to create a character that resonates with the idea, "We may not be perfect in this world, but we are unique," he told CNBC.

Pop Mart’s disciplined IP strategy and global ambitions underscore its commitment to evolving beyond the initial Labubu success and establishing a sustainable, diversified portfolio of beloved characters.