👩🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.
🧔♂️ A friendly human may check it before it goes live. More news here
🧔♂️ A friendly human may check it before it goes live. More news here
Pop Mart shares drop 23% on revenue miss, Labubu reliance
Pop Mart International Group Ltd.’s Hong Kong-listed shares fell a record 23% after its 2025 results showed heavier reliance on its Labubu franchise and a revenue miss.
The Beijing-based toy maker posted revenue of 37.1 billion yuan (US$5.37 billion) while net income rose 309% to 12.8 billion yuan (US$1.85 billion), a touch above forecasts.
An analyst cited a Q4 slowdown and a dividend payout cut to 25% from 35% as adding to concerns about franchise durability.
CEO Wang Ning said Pop Mart expects at least 20% sales growth in 2026, and the company reported Americas revenue of 6.8 billion yuan (US$985.29 million) after adding 42 stores.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
Pop Mart is building franchises beyond toys
- Pop Mart wants less dependence on one character. It is pushing Labubu as a media franchise through a movie deal with Sony Pictures Entertainment (a Hollywood film and TV studio) 1.
- To reach audiences outside China, the film has Paul King attached. He directed “Paddington” and “Wonka” 2.
- Expansion plans also cover location-based entertainment. Phase Two of its Beijing theme park is expected to start construction in 2027, with IP (intellectual property)-themed areas for SKULLPANDA and Little Star Man 3.
- The company has opened a jewellery store chain. It sells items engraved with its popular characters, which adds another revenue stream beyond collectible toys 4.
A new playbook for turning products into global entertainment brands
- This approach offers a current template for making money from intellectual property. It starts with a niche product, then grows into a broader entertainment business.
- The figurine business helped Pop Mart spot characters with momentum. It then moved into nearby physical lines like plush toys, which became the largest revenue source at 50.4% 5.
- After landing a proven hit, the company is investing in experiences. That includes theme parks and a hybrid live-action and CGI (computer-generated imagery) film project 1.
- Scaling from goods to media franchises can help IP-led businesses build brands that last. Examples include video game studios and digital creators 2.
