When LABUBU took the global collectibles market by storm earlier this year, it wasn’t just another viral phenomenon—it was the latest demonstration of Pop Mart’s sophisticated IP engine in action. The creature from THE MONSTERS series achieved what few consumer products accomplish: crossing from niche collector circles into mainstream consciousness while generating staggering revenue growth. But behind this success lies a deliberate system that has transformed Pop Mart from a single-IP company into what founder Wang Ning (王宁) describes as a ‘record label for artists.’
Beyond the Hype: What the Numbers Reveal
Pop Mart’s recent financial results provide concrete evidence that their approach is working. THE MONSTERS series, centered on the LABUBU character, generated 4.81 billion yuan in revenue during the first half of the year—an astonishing 668% year-over-year increase. Yet despite this explosive growth, the series represents only about one-third of Pop Mart’s total revenue, signaling a healthy diversification away from the single-IP dependency that once characterized the company.
This represents a dramatic evolution from 2017, when Molly accounted for over 80% of revenue. Today, Pop Mart boasts five IPs that each generated over 1 billion yuan in revenue and thirteen IPs that surpassed 100 million yuan in the same period. This diversification didn’t happen by accident—it resulted from a conscious strategy to build what essentially functions as an artist management system for intellectual property.
The Systematic Creation of ‘Next LABUBU’ Candidates
Pop Mart’s ability to consistently identify and develop new hit IPs follows a recognizable pattern. The company has demonstrated a rhythm of creating new ‘top stream’ IPs every few years: Molly (the ‘pouting little girl’) dominated initially, followed by SKULLPANDA (known for its ‘art design style’) in 2022-2023, and now THE MONSTERS series in 2024.
Identifying the Contenders
The search for the next LABUBU already has two strong candidates emerging:
– CRYBABY: This IP achieved the fastest entry into the ‘1 billion yuan club’ according to 2024 financial data
– Starman: Signed with Pop Mart just in August 2023, this IP already generated 390 million yuan in the first half of 2024, earning the designation as ‘fastest-growing new IP’
What makes this consistent pipeline possible isn’t luck or mysterious consumer whims—it’s a replicable process that combines artistic sensibility with data-driven decision making.
The Artist Discovery Machine: Pop Mart as Talent Scout
Pop Mart’s approach to finding artists resembles how record labels discover musical talent. The company primarily works with signed artists, transforming their creations into commercial products. Their discovery process has evolved from simple social media monitoring to sophisticated talent identification systems.
The original Molly discovery came from a 2016 Twitter post where Wang Ning asked followers what they collected besides Sonny Angel (another popular collectible). The most frequently mentioned answer was the work of Hong Kong designer Kenny Wong (王信明)—specifically his Molly character that had already existed for a decade. As Wang Ning later noted: ‘We didn’t make them famous—they were already popular in Hong Kong. These artists were already masters in their field, just in a very niche community.’
Today, Pop Mart runs annual潮玩展 (chaowan zhan – trend toy exhibitions) where they observe which artists attract the longest lines and most engagement. This live testing ground allows them to identify potential partners based on actual consumer response rather than subjective judgment.
Many artists struggle to commercialize their work independently due to manufacturing challenges. The process of 开模 (kāimó – creating molds) is expensive and requires factory relationships, packaging design, and distribution networks that most individual artists lack. Even if they overcome these hurdles, they might only sell dozens or hundreds of units in the small collector community.
Quantifying the Intangible: Testing Emotional Connection
The transformation from artist sketch to commercial product involves a rigorous testing process that balances artistic intuition with data-driven validation. While some decisions remain in the realm of creative judgment—as Pop Mart International Group COO Si De (司德) noted regarding Molly’s ‘courageous image’ that ‘you can’t discuss data indicators’—much of the process is surprisingly systematic.
The Three Pillars of IP Potential
Former employees describe Pop Mart’s evaluation framework around three core dimensions:
– Emotional resonance: Does the character create an authentic connection?
– Visual memorability: Is the design distinctive and recognizable?
– User extensibility: Can the IP expand into different products and formats
The emotional resonance component receives particular attention. During early testing of LABUBU, approximately 80% of respondents reported that they ‘found it authentic because it didn’t pretend to be perfect’—a clear signal that the emotional connection was working.
Physical products undergo testing through automated vending machines and pop-up stores before full production. This small-scale testing allows Pop Mart to identify promising IPs before committing significant resources. Even after launch, the company continues consumer research to refine their understanding of what works and why.
Resource Allocation: The IP Tier System
Not all IPs receive equal treatment within Pop Mart’s ecosystem. The company categorizes IPs into different tiers that determine their access to marketing resources, retail placement, supply chain priority, and product development investment.
A lower-tier IP might begin with a single series production of several thousand units. If market response is positive, the next generation might scale to tens of thousands of units with broader distribution and increased marketing support. According to reporting from Late Post (晚点Latepost), Pop Mart’s integrated data from direct-operated stores allows them to make production adjustments within days of a new product launch, quickly redirecting resources to the best-performing items.
This system functions much like a talent agency managing different levels of celebrities—emerging artists get basic support, while breakout stars receive immediate resource amplification. The result is that IP performance rarely follows a straight trajectory. As Pop Mart’s data shows, successful IPs typically experience cycles of ‘up and down and up again’ as they navigate different development phases.
SKULLPANDA began as a minor IP in 2019 before growing into the company’s second-largest property. THE MONSTERS series (home to LABUBU) launched in 2018 but required several years to build momentum. Meanwhile, DIMOO maintained top-three status for years before settling at fifth position in the most recent rankings.
Global Expansion: Methodical Market Entry
Pop Mart applies the same test-and-learn approach to international expansion that it uses for IP development. The company’s methodical three-phase entry strategy minimizes risk while maximizing learning:
– Phase 1: Participate in local exhibitions to build brand awareness while monitoring e-commerce response to identify regional preferences
– Phase 2: Deploy automated stores or pop-up locations in partnership with local experts to test specific locations
– Phase 3: Establish permanent retail locations based on validated consumer demand and location performance
This cautious approach has enabled Pop Mart to expand globally while avoiding the costly missteps that often plague international retail expansions.
Beyond the Box: Pop Mart’s Expanding Ecosystem
Recent years have seen Pop Mart expand beyond collectible figures into jewelry, physical entertainment, and media content. Rather than representing a departure from their core business, these expansions reflect the company’s fundamental strategy: everything serves the IP.
Founder Wang Ning has consistently stated that ‘blind boxes are just a sales method, like discount promotions—but they are not Pop Mart’s business model.’ Similarly, Pop Mart Theme Park负责人胡健 (Hu Jian, theme park负责人) explains that if collectibles transform 2D artist IP into 3D forms, their parks represent the ‘physical realization’ of these IPs.
This philosophy positions Pop Mart not as a toy company but as an IP operation platform—what Wang Ning describes as resembling a record company that handles everything beyond the core creative act: ‘distribution, packaging, and commercialization.’
The Future of IP Creation
Pop Mart’s evolution from single-IP dependency to diversified portfolio demonstrates the power of systematic IP management. The company’s continued success likely depends less on any individual character’s longevity than on maintaining their ‘star-making’ system’s effectiveness.
The search for the next LABUBU continues—not as a desperate hunt for another hit, but as the ongoing output of a sophisticated machine designed to identify, develop, and scale artistic creations into global phenomena. In an entertainment landscape increasingly dominated by intellectual property, Pop Mart has built something rare: a reproducible system for creating cultural icons.
The question isn’t whether another LABUBU will emerge—but rather which of the developing IPs in Pop Mart’s system will breakthrough next, and how the company’s methodical approach will continue evolving to create the collectible icons of tomorrow.