Labubu craze slows down... China's Pop Mart growth slows down

(Beijing = Yonhap News) Correspondent Jong-gu Han = As the craze for the globally popular character doll ‘LABUBU’ slowed down, the growth of Chinese toy company Pop Mart came to a sudden halt.

According to Bloomberg News on the 20th, Pop Mart's sales in the first half of this year were 17.2 billion yuan (about 3.56 trillion won), a 24% increase from the same period last year.

Sales themselves increased, but the growth rate slowed significantly compared to the 200% increase in the same period last year, thanks to the popularity of Labubu.

Net profit was also 5.04 billion yuan, below the market forecast of 6.6 billion yuan.

In particular, sales in mainland China, Hong Kong, Macau, and Taiwan increased by 47%, but overseas sales decreased by 11% compared to the same period last year.

Pop Mart operates about 80 stores in the United States and plans to expand to more than 100 by the end of the year.

It is known that there are more than 400 stores in mainland China.

Pop Mart grew explosively last year when Blackpink member Lisa and pop star Rihanna introduced Labubu products on social media.

At one time, it was evaluated as having surpassed the limitations of 'Chinese-made toys', but as the enthusiasm waned, a new challenge emerged: whether a single popular character could be developed into a sustainable intellectual property (IP).

There is analysis in the market that not only Pop Mart but also some Chinese consumer goods brands that have grown rapidly thanks to the popularity of social media are facing similar problems.

Chinese jewelry brand Raopu Huangjin and beverage company Charge also grew rapidly, but it is becoming difficult to maintain growth as consumption declines due to the economic slowdown.

Pop Mart is seeking a breakthrough by nurturing popular characters, including Labubu, into long-term entertainment IP.

However, Bloomberg assessed that unlike Disney or Japan's Sanrio, which owns Hello Kitty, which has accumulated recognition for a long time, it appears that it will take a considerable amount of time for Popmart to grow into a global IP company.