Research: POP MART
Project 01: Identity and Space
POP MART is a Chinese toy company listed on the Hong Kong stock exchange.
The company is known for selling collectable ‘designer’ toys, often sold in a ‘blind box’ format.
The Financial Times has described the company as having “elevated toy-buying to an act of trendy connoisseurship among China’s young affluent consumers”, and as having been ‘credited with creating the market for so-called designer toys’.
Around half of its sales are made at physical outlets, with the rest completed online. The company additionally operates a social media and toy-trading app as part of its marketing strategy. Its toys are known for selling to collectors on the second-hand market; venture capital firms have been known to invest in its second-hand products.
History of POP MART
The company was founded in China in 2010 by Wang Ning. The brand’s initial marketing strategy engaged with youth culture trends in China. Over time it grew to 288 outlets and 1800 vending machines in that country. Its success in the ‘blind box’ format drove a $676m USD listing on the Hong Kong Stock Exchange in 2020 giving it a market capitalisation of $7b at the time. However, its revenue growth slowed and its shares slid below offer price.
The company later expanded its growth strategy beyond mainland Chinese markets, with the Financial Times reporting on plans in 2022 to open between 40 and 50 overseas outlets. It first expanded to the US, New Zealand, Australia, South Korea, and Taiwan, and the UK in 2022. In 2023 it expanded to Malaysia, and France. Some equity analysts have expressed scepticism at the company’s ability to expand into the West, while executives of the company have described developing that growth market as the company’s ‘most important development focus’; and argued that the company’s product offering is differentiated from existing western markets.
Chinese media has described the toy company’s products as ‘addictive’. In recent times, the company has been increasingly regulated; within China, the company has come under domestic regulatory pressure after regulators banned the sale of mystery boxes to children under eight years; and required guardian consent for older children. In Singapore, a S$100 prize limit on mystery boxes has been proposed by the Ministry of Home Affairs.
The success of the company has spawned multiple imitating blind box toy companies in China.
In China, the toys are sold for typically between 59 and 69 RMB each, in a ‘blind box’ format credited with ‘driving repeated purchases from customers seeking to secure the rarest collectables’. Its customers in China are typically affluent teenagers and young adults.
The company works with designers and artists to develop characters. In 2021 it released a collection themed around the US artist Keith Haring, and has collaborated with Moncler. Other designers include Pucky, Ayan, and SKULLPANDA.
Unpacking the Story Behind Pop Mart’s Iconic Blind Box Collectibles
If you’ve never heard of POP MART, it’s time to get familiar with this Chinese lifestyle brand that has taken the world by storm in recent years. From its unique and innovative approach to design and marketing to its incredible success in the international market, Pop Mart is a company that is hard to ignore.
So, what is POP MART? Founded in 2010 by Wang Ning, a veteran in the toy industry, the company initially produced vinyl toys that were popular among collectors. However, it wasn’t until 2016 that Pop Mart began to gain mainstream attention with the launch of its first blind box toy series, Molly.
Blind box toys are collectibles that come in a sealed box, with the content unknown to the buyer until they open it. This element of surprise and anticipation has made blind box toys incredibly popular, and Pop Mart’s Molly series was no exception. The success of the Molly series allowed Pop Mart to expand its product line and venture into new markets.
According to a 2022 report by the BrandTrends Group, Pop Mart’s products are especially popular among young Chinese females aged 15 to 35 years old, making up around 65% of the brand’s customer base. The report also shows that the remaining 35% are mostly male customers within the same age range, although younger demographics also start picking it up.
The findings suggest that POP MART’s innovative designs, unique packaging, and emotional connection with customers have resonated strongly with the younger generation in China. The brand has successfully tapped into the youth market’s desire for collectibles and nostalgia, creating a unique lifestyle brand that has captured the hearts of many.
The demographic target is well thought-out: young employees are often exposed to stresses and heavy psychological burdens in the face of the fast pace of society and the pressure of daily work. When they stand in the office in front of boring documents or tables, toys/collectibles can fulfil the role of a mascot in the corner of their office. Unlike plants, figurines don’t need to be watered or cared for, and they don’t take up much space. In addition, blind boxes are also a great gift idea when young people can’t always afford luxury items but still want to give something chic and unique.
Today, POP MART has over 100 intellectual property rights and licenses, including collaborations with popular brands such as Disney and Sesame Street. POP MART’s success can be attributed to a combination of factors, including its unique approach to design and marketing, collaborations with established and emerging artists, and expansion into international markets.
POP MART’s marketing strategy has played a significant role in the brand’s success. The company focuses on creating an emotional connection with its customers. One way they do this is through the packaging of their products. Each blind box toy comes in a uniquely designed box, featuring colourful illustrations and characters. The packaging itself is designed to be a collectible item, adding to the overall value of the product.
POP MART also uses social media to its advantage, with its official Weibo account boasting over 20 million followers. The company regularly posts content featuring its latest releases, collaborations, and behind-the-scenes footage. This not only keeps its customers engaged but also helps to build a community around the brand.
Despite POP MART’s tremendous success, there has been some controversy around blind box toys. As they can incite children to spend more than the figurine’s actual value, parents have become wary of them. However, Pop Mart has managed to leverage this trend and create a strong brand identity with unique packaging and collaborations with popular brands and designers.
One of the brand’s most successful collaborations was with the Chinese designer and illustrator, Luo Li Rong. The partnership resulted in the creation of the popular blind box series, Pucky. In addition to collaborating with established brands and designers, POP MART has also worked with up-and-coming artists. This has helped to create a platform for emerging talent, as well as bringing fresh and unique designs to the market.
POP MART has expanded rapidly into international markets, with its products now available in over 50 countries worldwide. The company has opened stores in Hong Kong, Singapore, and Malaysia, and has plans to expand further in Southeast Asia and Europe. Pop Mart’s focus on creating culturally relevant products has contributed to its success in the international market.
POP MART has built, by far, the competitive edge with its designers, retail channels and industrial chain. The company has recruited famous designers like Kenny, Pucky and Kasing Lung, and launched many fan favourites to secure a large number of loyal customers. Meanwhile, POP MART works with renowned global brands to create pop culture products based on classic characters that appeal to the young.
Moreover, POP MART attaches great importance to supporting the foundation of the designer toy market. To improve the training of homegrown talent, POP MART works with the Chinese Central Academy of Fine Arts to present seminars on designer toys and invites top designers to share their wisdom about the industry.
As POP MART continues to extend its reach, the company has also completed an industrial chain that consists of designers, factories, retail distribution and international toy shows. In that way, designers can focus on their work and the industry can truly prosper.
In October 2021, POP MART was officially launched in Australia, aiming to light up passion and bring joy to all Australians. Forging ahead, POP MART Australia will always strive to unlock tons of fun for Australians through diversified channels including Roboshops, physical and online stores.
In short, Pop Mart’s phenomenal success can be attributed to a combination of factors, including its unique approach to design and marketing, collaborations with established and emerging artists, and expansion into international markets. The brand’s ability to create emotional connections with its customers has helped to build a loyal following and establish it as a leader in the lifestyle industry. As Pop Mart continues to expand, we can expect new and innovative products to come from this company. With its creative vision and strategic approach to marketing, Pop Mart is here to stay.