Pop Mart's Global Blitz: How Overseas Expansion and IP Power Drive 200%+ Growth

Pop Mart International Group has become the poster child of China's consumer discretionary boom, but its recent performance transcends borders. In the first quarter of 2025, the company reported a staggering 165%–170% year-over-year revenue surge, fueled by an overseas revenue explosion—U.S. sales jumped 895%, while European sales soared 600%. By mid-2025, overseas revenue now accounts for 38.9% of total sales, up from just 8% in 2020. This transformation isn't just about scale; it's a testament to Pop Mart's ability to weaponize its IP portfolio and replicate its “blind box” model across global markets. With a 2025 revenue target of RMB 20 billion (a 53% increase from 2024), investors are right to ask: Is this growth sustainable, and does it justify a “buy”?

The Overseas Playbook: From Asia to the Americas

Pop Mart's expansion isn't just about numbers—it's about strategic depth. In Southeast Asia, where stores in Thailand and Vietnam have driven a 619% revenue surge since 2022, the company has mastered the art of localizing its IP. The “POPOP” pop-up stores in Shanghai and Chengdu, now replicated in Jakarta and Manila, blend social media buzz with tactile retail experiences. But the real game-changer is North America. By Q1 2025, U.S. revenue alone had eclipsed the company's entire 2024 global revenue, growing 100% year-over-year. This isn't a fluke: Pop Mart's 26 U.S. stores and 1.7 million members have made plush toys like Hirono and The Monster viral hits, while TikTok-driven campaigns (revenue up 5,780% in 2024) keep the momentum alive.

The scalability of Pop Mart's model is its secret sauce. Its “blind box” system—a low-cost entry point for impulse buyers—has proven replicable across cultures. In Europe, where stores in Paris and Amsterdam now anchor its presence, the same formula applies: affordable collectibles with cult IP appeal. By year-end 2025, Pop Mart aims to add 100 new overseas stores, including flagship locations in France and Australia. This isn't just geographic diversification; it's a blueprint for market saturation in high-margin regions.

The IP Engine: From MOLLY to MONSTERS—Why Pop Mart's Brand Stays Hot

Pop Mart's revenue isn't just growing; it's being fueled by a handful of superstar IPs that defy the “fad” label. Take Labubu, celebrating its 10th anniversary in 2025: its revenue grew 726% year-over-year in 2024, and it's now a global icon. The Skullpanda “Warmth” series, which became Pop Mart's top-selling trendy toy, exemplifies how nostalgia and innovation coexist. Meanwhile, The Monster, a newer IP, has become a U.S. sensation, leveraging its dark, edgy aesthetic to attract Gen Z collectors.

The key to Pop Mart's IP strategy is its balance between legacy and newness. While MOLLY—the company's original star—remains a cash cow, newer IPs like Peach Riot (contributing RMB 3 billion in 2024) and Hirono (RMB 730 million) ensure the pipeline stays fresh. This “IP galaxy” approach mitigates over-reliance on any single character, a risk analysts have flagged. The result? A 21.7% revenue contribution from plush toys alone in 2024, up from 1.4% in 2020—a category that now commands 68% gross margins, far above traditional toys.

Margin Expansion: The Profitability Payoff

Pop Mart's financial metrics are as impressive as its top-line growth. In 2024, gross margins hit 66.8%, up 5.5 percentage points from 2023, thanks to supply chain efficiencies. Inventory turnover days dropped from 133 to 102, reflecting better logistics management as the company scaled production from 300,000 plush units/month to 10 million/month in 2024. This operational muscle is critical: as Pop Mart expands into higher-cost regions like Europe and North America, its ability to maintain margins will determine its long-term viability.

The company's net profit surged 185.9% in 2024 to RMB 3.4 billion—a figure that could double by 2025 if current trends hold. While some analysts worry about over-reliance on plush toys (now 35% of revenue), the category's 1,289% year-over-year growth in 2024 suggests it's still in its early innings.

Risks and the Case for Caution

No growth story is without risks. Geopolitical headwinds, such as U.S. tariffs on Chinese imports or regulatory scrutiny of “blind box” marketing, could crimp margins. Meanwhile, competitors like TopToy (backed by Miniso) are replicating Pop Mart's model, while established IPs like Harry Potter threaten to poach collectors.

Yet these risks are manageable. Pop Mart's IP portfolio is deeper than rivals', and its global footprint (200 stores and 2,500 Robo Shops by mid-2025) creates network effects that are hard to replicate. The plush toy category's high margins also act as a buffer against cost pressures.

Investment Thesis: Buy the Global Collectibles Play

Pop Mart's stock has surged 75% year-to-date, but its valuation remains justified. At 45x trailing P/E, it's pricier than peers, but its growth trajectory—projected to hit 200%+ HY revenue growth in 2025—is unmatched. The company's 2025 target of RMB 20 billion in revenue (with 50% from overseas) is ambitious but achievable, given its execution to date.

The long-term thesis hinges on two trends: the global collectibles market's $200 billion potential (per McKinsey) and Pop Mart's unique ability to monetize it through IP-driven, experiential retail. While risks like IP lifecycle management and geopolitical friction linger, the company's diversification across regions and categories reduces dependency on any single market or character.

Conclusion: A “Buy” with an Eye on the Long Game

Pop Mart isn't just another Chinese consumer story—it's a global IP powerhouse with a replicable model, a deep roster of hits, and a profit engine that's only accelerating. While valuation is high, the scale of its overseas expansion and the longevity of its IP strategy suggest it can grow into its multiples. For investors willing to look past short-term noise, Pop Mart offers a rare blend of growth, profitability, and cultural relevance in a collectibles market that's only getting hotter.

Recommendation: Buy, with a 12-month price target of HK$50 (implying 25% upside from current levels). Risks include trade tensions and IP saturation.