POP MART's Global Dominance: A Blueprint for Sustained Growth in the Trendy Toy Market

The global collectibles market, valued at $294.23 billion in 2023, is undergoing a structural shift driven by the rise of trendy toys and pop culture-driven emotional consumption. At the forefront of this transformation is POP MART, a Chinese company whose 106.9% year-on-year revenue growth (to RMB 13.04 billion in 2024) and 185.9% net profit surge have cemented its status as a global leader. This article examines how POP MART's strategic focus on IP innovation, aggressive international expansion, and operational efficiency positions it for sustained growth—despite risks—making it a compelling long-term investment.

The Engine of Growth: IP Mastery and Global Reach

POP MART's success hinges on its ability to create and monetize emotional connections through intellectual property (IP). Its core IPs—THE MONSTERS, MOLLY, SKULLPANDA, and CRYBABY—generated over RMB 1 billion in revenue in 2024, while newer IPs like HIRONO (RMB 730 million) and Peach Riot (a hit in international markets) are fueling diversification. The plush toys segment, exemplified by Labubu, saw a staggering 1,289% revenue jump to RMB 2.83 billion in 2024, accounting for 21.7% of total sales, showcasing the viral potential of tactile, nostalgic products.

This IP-driven strategy is amplified by aggressive globalization. Overseas revenue surged 375.2% to RMB 5.07 billion in 2024, now representing 38.9% of total revenue. By 2024, POP MART had established 130 overseas stores and 192 ROBOSHOPs in nearly 100 countries, including high-profile locations like the Louvre in Paris and Sun World Ba Na Hills in Vietnam. In 2025, its U.S. app topped the App Store shopping chart, with American consumers queuing overnight for releases—a testament to the brand's global desirability.

Strategic Advantages: Scalability and Efficiency

POP MART's operational efficiency is a key differentiator. Its gross profit margin hit 66.8% in 2024, up 5.5 percentage points from 2023, reflecting streamlined supply chains and direct-to-consumer (DTC) strategies. The company's DTC model, which bypasses intermediaries, combined with localized store designs (e.g., K-POP themes in Korea), ensures relevance across markets. Meanwhile, its e-commerce platform now reaches over 80 countries, offering scalable distribution without heavy capital expenditure.

The MEGA COLLECTION brand, targeting high-end collectibles, grew 146.1% to RMB 1.68 billion in 2024, underscoring the brand's ability to cater to diverse price points and demographics. Additionally, derivatives and accessory lines (e.g., clothing, home decor) surged 156.2%, highlighting the viral potential of expanding IP universes.

Risks and Mitigants

Critics point to IP dependency risks, as core IPs account for a significant share of revenue. However, POP MART's IP pipeline—with over 15 active IPs and continuous launches—suggests diversification. Competitive pressures from rivals like TOPTOY are real, but POP MART's established brand equity and global footprint provide a moat. Regulatory challenges, such as tariffs or cultural sensitivities, are mitigated by localized partnerships and agile supply chains.

The North American and European markets, largely untapped, represent a major growth frontier. With flagship stores in London and Paris, and U.S. consumer enthusiasm already evident, the company is poised to replicate its Asia-Pacific success.

Investment Case: Why POP MART Deserves a Long-Term Bet

The $306.44 billion projected global collectibles market in 2024 (expanding to $422.56 billion by 2030) offers a tailwind for POP MART. Its scalable e-commerce model, localized IP strategies, and high gross margins create a resilient business model. While short-term volatility may arise from IP cycles or macroeconomic headwinds, the company's track record of innovation and execution justifies a buy-and-hold approach.

Investors should focus on valuation multiples and market penetration metrics. At current valuations, POP MART's price-to-sales ratio remains reasonable given its growth trajectory. Meanwhile, the 375.2% overseas revenue growth suggests further upside as it expands into underpenetrated regions.

Conclusion

POP MART's blend of IP-driven emotional appeal, operational efficiency, and global expansion positions it as a leader in the trendy toy sector. While risks like IP saturation and regulatory hurdles exist, the company's agility and scalability mitigate these concerns. With emerging markets and high-margin accessories offering further upside, POP MART is a compelling play on a $300 billion+ industry in structural growth. For investors seeking exposure to pop culture-driven consumption, this is a name to watch—and hold.