Pop Mart launching mini version of Labubu this week; firm’s sales could reach $5.4b in 2025

HONG KONG/SHANGHAI - Pop Mart chief executive Wang Ning said on Aug 20 that his toy company was on track to meet its targeted revenue goal of 20 billion yuan in 2025 and that “30 billion yuan (S$5.4 billion) this year should also be quite easy”.

Mr Wang was speaking with analysts after Pop Mart announced record half-year results on Aug 19, with the makers of the ugly-cute Labubu doll reporting that net profit soared nearly 400 per cent as demand for the toys surged, particularly in higher-margin overseas markets.

Until now most popular as a charm for handbags, Pop Mart says it will this week launch a mini version of Labubu that can be attached to mobile phones.

Pop Mart executives also said on Aug 20 that expansion in emerging markets in the Middle East, Central Europe and Central and South America was being explored.

“I think for overseas markets, we’re still very positive, and we also believe there’s still very broad space for growth,” Mr Wang said, adding that sales from North America and Asia-Pacific in 2025 would together equal China sales in 2024.

In the US, where Pop Mart currently has about 40 stores, Mr Wang said the company will begin a phase of “relatively rapid store openings” over the next year or two, with 10 more US shops expected to open by the end of 2025.

Next in Pop Mart’s sights is a Disney-esque empire, with executives saying the firm is optimistic about opportunities for Pop Mart characters to star in animated films and theme park attractions, though these are not expected to contribute a large amount of direct revenue in the short term.

Pop Mart’s primary business is producing and selling collectible toys, many of them developed with artists and sold in “blind boxes”, packages consumers buy for around US$10 (S$13) to US$20 without knowing exactly which iteration of the toy is inside.

Labubu, a toothy-grinned member of “The Monsters” series of toys designed by Lung Kasing, has become a favourite of celebrities including Rihanna and David Beckham, and has sold out around the world.

Pop Mart said on Aug 19 that “The Monsters” raked in 4.81 billion yuan in the first half of the year, accounting for 34.7 per cent of total revenue. Four other intellectual property characters earned over one billion yuan during the period, including “Molly” and “Crybaby”.

Morningstar analyst Jeff Zhang said: “We expect more restocking of existing series and launching of new editions to drive earnings expansion in the second half. That said, shares likely remain overpriced as investors are overlooking the high business risk in the long run, in our view.”

Shares in the company have risen more than 230 per cent year to date, making Pop Mart more valuable than traditional industry giants like Barbie-maker Mattel, and Hello Kitty parent company Sanrio.

The company now has 571 stores – 40 of which it opened in the first half of 2025 – as well as 2,597 automated robot shops across 18 countries and regions, it added. REUTERS