Pop Mart urgently halts: After Labubu's explosive popularity, Wang Ning plans a more stable and long-term development strategy

In 2025, Pop Mart delivered an impressive report card, with annual revenue reaching 37.12 billion yuan, a year-on-year increase of 184.7%; net profit was 13.01 billion yuan, up 293.3%. Against the backdrop of an overall stable consumer market, this growth rate stands out particularly. The company not only achieved a leap in revenue scale but also significantly improved its profitability, with gross margin rising from 66.8% to 72.1%.

The core driving force behind this performance comes from multiple aspects. IP operations have become the primary growth engine, with the LABUBU series alone generating over 14.1 billion yuan, while another six IPs exceeded 2 billion yuan in revenue, forming a multi-layered product matrix. Top IPs such as SKULLPANDA and CRYBABY have made synchronized efforts, establishing a solid IP ecosystem for the company. The category structure also underwent significant changes, with plush products surpassing figures for the first time to become the largest category, generating 18.71 billion yuan in revenue, a year-on-year increase of 560.6%. Industry observers point out that the explosion of plush products reflects a shift in consumer demand, moving from a collection logic to emotional companionship, opening up new growth space for the company.

Global expansion has become another important support. In 2025, overseas revenue accounted for nearly 44% of Pop Mart’s total, with revenue from the Americas reaching 6.81 billion yuan, a year-on-year increase of 748.4%; revenue from Europe and other regions was 1.45 billion yuan, up 506.3%. Channel expansion is also progressing simultaneously, with the total number of global stores reaching 630 and the number of robot stores increasing to 2,637. The membership scale has surpassed 72.58 million, with a repurchase rate of 55.7%, as the user structure shifts from one-time purchases to high-frequency consumption.

However, rapid development has also brought a series of challenges. The problem of reliance on single IP has become prominent, with THE MONSTERS series contributing 38.1% of revenue, and market agencies warn that this may pose valuation adjustment risks. Inventory pressure has significantly increased, with stock rising from 1.525 billion yuan to 5.473 billion yuan, and turnover days extending by 21 days. Operating costs have risen rapidly, with transportation and logistics costs increasing by 276%, and e-commerce service fees rising by 134%. The organizational scale has dramatically expanded, with the total number of employees exceeding ten thousand, of which nearly 80% are in the sales team, raising higher demands for multinational management.

The company’s founder, Wang Ning, candidly admitted at the earnings conference that the past year felt like a novice race car driver being pushed onto the F1 track, exposing many deficiencies in organizational management, regional collaboration, and middle office support. Taking the U.S. market as an example, actual revenue reached 6.9 billion yuan, far exceeding the budget expectation of 2 billion yuan, resulting in immense pressure on talent reserves, system support, and warehousing logistics. The problem of excessively high online sales ratio has also emerged, which does not align with the company’s long-term strategic planning.

In response to these challenges, Pop Mart has proactively adjusted its development pace. The revenue growth target for 2026 is set at no less than 20%, abandoning aggressive expansion strategies in favor of pursuing long-term stable development. The use of funds has undergone a significant shift, with funds raised from the IPO being redirected from IP acquisitions to overseas expansion and operational system construction, with some funds invested in theme parks, exhibitions, and other IP commercialization platforms. Channel strategies have also been optimized, with third-party channels focusing on customer acquisition, proprietary channels strengthening repurchase, and all channels emphasizing turnover efficiency.

The business boundaries continue to expand, with the company exploring new categories such as accessories, desserts, theme stores, and home appliances. The management team expresses confidence in the extension capabilities of its IPs, believing that quality IPs can empower more consumer scenarios. In terms of strategic positioning, the company clearly identifies itself as a consumer goods and trendy cultural entertainment enterprise, rather than a technology company, which points the direction for future development.

This strategic adjustment marks the beginning of a new development phase for Pop Mart. Transitioning from manufacturing hit products to building ecosystems, from scale expansion to quality enhancement, the company is undergoing a significant transformation. How to balance growth speed with operational quality, how to reduce reliance on a single IP, and how to enhance global operational capabilities will be key factors determining its future direction.