Pop Mart’s Q3 growth hits 250% as LABUBU drives global expansion, but stock declines and founder Wang Ning loses Henan’s richest title, highlighting market volatility and IP dependency risks. Pop Mart’s market performance remains a key focus for investors navigating Chinese equities. – Pop Mart’s Q3 revenue grew 245-250% year-over-year, with overseas markets surging up to 1270%, driven by LABUBU IP. – Despite strong business metrics, the company’s stock price fell over 9% in late October, eroding market confidence. – Founder Wang Ning (王宁) lost his position as Henan’s richest person to Muyuan Group’s Qin Yinglin (秦英林), reflecting wealth fluctuations tied to stock performance. – LABUBU IP now accounts for over 34% of revenue, raising concerns over diversification and sustainability. – Secondary market price swings for Pop Mart products underscore the challenges in maintaining long-term IP value. In a striking contrast of triumphs and setbacks, Pop Mart International Group Limited (泡泡玛特) unveiled blistering third-quarter growth while its founder Wang Ning (王宁) ceded the title of Henan’s richest person. The company’s revenue skyrocketed up to 250% year-over-year, fueled by the viral LABUBU IP, yet investor sentiment wavered as shares tumbled over 9% in a single day. This divergence underscores the volatile nature of Pop Mart’s market performance, where explosive expansion in global markets clashes with capital market skepticism. As Pop Mart’s market dynamics evolve, understanding the interplay between IP innovation, stock volatility, and founder fortunes becomes crucial for stakeholders in the Chinese equity landscape.
Q3 Business Update: Record Growth Amid Market Skepticism
Pop Mart’s third-quarter 2025 unaudited results revealed unprecedented growth, with overall revenue increasing 245% to 250% compared to the same period in 2024. This surge was propelled by robust performances across domestic and international segments, highlighting the company’s effective scaling strategies. Pop Mart’s market performance in this quarter exceeded analyst expectations, driven by strategic product launches and enhanced operational efficiencies.
Domestic Market Resilience
In China, revenue grew 185% to 190% year-over-year, demonstrating strong consumer demand. Key factors included: – Offline channels saw a 130% to 135% increase, aided by store optimizations and improved customer experiences. – Online sales jumped 300% to 305%, leveraging anti-scalper measures and faster product releases to meet fan demand. These gains reflect Pop Mart’s agile adaptation to local market trends, though competition in China’s retail sector remains intense.
Overseas Expansion Soars
International revenue exploded by 365% to 370%, with notable regional breakdowns: – Americas: Approximately 13-fold growth (1265% to 1270%), making it the fastest-growing market. – Europe: Over 7-fold increase (735% to 740%), supported by new high-profile store openings. – Asia-Pacific (excluding China): 170% to 175% growth, indicating steady penetration. According to China International Capital Corporation Limited (中金公司), Pop Mart opened 23 new overseas stores in Q3, including flagship locations in Berlin and New York, boosting global brand visibility. This expansion underscores Pop Mart’s market performance as a benchmark for Chinese consumer brands going global.
Stock Price Volatility: A Tale of Two Narratives
Despite stellar operational results, Pop Mart’s shares experienced significant declines, falling 8.08% on October 21 and 9.36% on October 23. The company’s market capitalization dropped to approximately HK$312.1 billion from a peak above HK$400 billion in August, highlighting investor concerns over sustainability and valuation. Pop Mart’s market performance in equities reflects broader market sentiments rather than operational weaknesses.
Recent Declines and Market Reaction
The stock slump coincided with the Q3 announcement, suggesting profit-taking or fears over growth deceleration. Key data points: – From October 17 to 23, shares mostly trended downward, with only a 2.4% rebound on October 22. – Year-to-date, the stock remains volatile, echoing trends in the broader Hong Kong market for growth-oriented stocks. Investors are closely monitoring Pop Mart’s market performance for signs of stabilization, as per updates from the Hong Kong Stock Exchange.
Wang Ning’s Response to Fluctuations
Founder Wang Ning (王宁) addressed the volatility in a July interview with CCTV News (央视新闻), stating, ‘Our market cap fluctuates daily—a 2% move means HK$10 billion gained or lost. It’s a market-driven valuation of our worth.’ He emphasized that Pop Mart’s market performance is shaped by collective investor confidence, not short-term headlines. This perspective aligns with the company’s long-term strategy to build enduring IP value.
LABUBU: The Crown Jewel of Pop Mart’s IP Empire
The LABUBU character, part of THE MONSTERS series created by Hong Kong artist Kasing Lung (龙家升), has become Pop Mart’s flagship IP, driving revenue leaps. In 2024, THE MONSTERS series revenue soared 726.6% to RMB 3.041 billion, accounting for 23.3% of total sales. By H1 2025, it contributed RMB 4.814 billion—a nearly 7-fold increase—and represented 34.7% of revenue, cementing its top position. Pop Mart’s market performance is increasingly tied to LABUBU’s appeal, which blends quirky design with effective marketing.
Meteoritic Rise of THE MONSTERS Series
LABUBU’s journey from niche to mainstream includes: – 2023: THE MONSTERS series revenue was RMB 368 million (5.8% of total). – 2024: Revenue jumped to RMB 3.041 billion (23.3%), overtaking other IPs. – H1 2025: Further growth to RMB 4.814 billion (34.7%), outperforming company-wide revenue growth of over 200%. This IP’s success stems from limited-edition releases and social media virality, with secondary market premiums exceeding 10 times retail prices for rare items.
Comparative Analysis with MOLLY and SKULLPANDA
While LABUBU dominates, other IPs show mixed trends: – MOLLY: Revenue share dropped from 16.2% in 2023 to 9.8% in H1 2025, despite 73.5% growth. – SKULLPANDA: Share fell from 16.3% to 8.8%, with 112.4% growth. – Newer IPs like ‘Starman’ (星星人) contributed only 2.8% in H1 2025, indicating LABUBU’s outsized role. Pop Mart’s market performance hinges on replicating LABUBU’s success across its IP portfolio to mitigate concentration risks.
Navigating Challenges: Sustainability and Diversification
Pop Mart faces headwinds from product price volatility and IP dependency. Secondary market data from platforms like Dewu (得物) shows sharp price drops for recent LABUBU series, such as the ‘Heart Code’ mini-series, which saw premiums halve within weeks. Similarly, older LABUBU items like the ‘Frontline High Energy’ series saw resale values plummet from RMB 1,380 to RMB 600-700. These fluctuations test Pop Mart’s market performance and brand resilience.
Over-dependence on LABUBU
The company’s reliance on LABUBU for over one-third of revenue raises sustainability questions. Efforts to diversify include: – Launching new series like ‘Starman Delicious Moment,’ though early contributions are modest. – Enhancing creativity in IP design to appeal to broader demographics. – Investing in artist collaborations and global licensing deals. However, without a successor IP, Pop Mart’s market performance could be vulnerable to shifts in consumer preferences.
Secondary Market Price Swings
Examples of price volatility include: – ‘WHY SO SERIOUS’ Halloween series: LABUBU-based ‘Moon Shadow Mask’ hidden item溢价13.4 times, selling for RMB 2,289 vs. RMB 159 retail. – Earlier series: ‘Loyalty’ version prices fell to RMB 81 from RMB 99, and ‘Ego’ hidden款 dropped from nearly RMB 10,000 to RMB 840. These swings highlight the speculative nature of collectibles, impacting Pop Mart’s market performance perception.
Strategic Moves and Global Ambitions
Pop Mart is leveraging celebrity endorsements and international expansions to bolster growth. In October 2025, Apple CEO Tim Cook visited THE MONSTERS 10-year exhibition in China, accompanied by Wang Ning (王宁) and artist Kasing Lung (龙家升). Cook received a custom LABUBU doll holding an iPhone, generating global media buzz. This event exemplifies Pop Mart’s use of high-profile partnerships to enhance brand equity and Pop Mart’s market performance overseas.
Celebrity Endorsements and IP Innovation
The company’s strategy includes: – Collaborating with influencers and brands to maintain IP relevance. – Introducing thematic series tied to holidays and cultural events, like the successful Halloween launch. – Focusing on long-term IP development, as Wang Ning noted in an interview with Huxiu (虎嗅), aiming to build ‘lasting IP vitality rather than fleeting trends.’ These initiatives support Pop Mart’s market performance by fostering emotional connections with consumers.
Long-term Vision and Risk Management
Wang Ning has emphasized ‘thinking of danger in times of safety,’ acknowledging that high expectations bring increased risks. The company’s forward-looking plans involve: – Expanding into new geographic markets with localized products. – Diversifying IP offerings to reduce reliance on single characters. – Strengthening supply chain and anti-scalper technologies to ensure fair access. As Pop Mart’s market performance continues to attract scrutiny, these steps are critical for sustained growth in competitive global markets. Pop Mart stands at a crossroads, balancing explosive growth with the need for stability. The company’s ability to diversify beyond LABUBU, manage stock volatility, and innovate in IP development will determine its trajectory. For investors, closely monitoring Pop Mart’s market performance—including quarterly reports and IP launches—is essential. As Chinese consumer brands gain global prominence, Pop Mart’s journey offers valuable lessons in navigating hype, sustainability, and founder legacies. Stay informed with real-time updates from financial platforms and regulatory filings to make data-driven decisions in this dynamic sector.