POP MART’s Revenue Grew by 116.8% to RMB 1.773 Billion and its Members Exceeded 10 Million 。

POP MART (HK:09992), a pop culture toy retailer headquartered in Beijing, released its 2021 mid-term financial report on August 27.

As a pioneer and major promoter of China’s pop culture, POP MART achieved RMB 1.773 in revenue in the first half of 2021, an increase of 116.8% from the same period of 2020, and RMB 359 million in the profit attributable to shareholders, an increase of 153.8% from the same period of 2020. As shown in the overall revenue, the performance of various channels and the number of employees, POP MART’s scale had doubled in one year.

Based on a review of the financial report and the latest developments in the industry, Luxe.Co summarized the following four noteworthy points about POP MART:

1. Dimoo has overtaken Molly to become the most lucrative IP, POP MART has launched high-end toy product lines
2. POP MART has accelerated overseas expansion while upgrading the domestic stores
3. POP MART has drawn more than 10 million members, and it has established research centers to promote pop culture
4. POP MART has stepped up deployment in pan-entertainment and established a park management company

1.

POP MART has been committed to discovering artists and operating IPs, which have been the core driving forces for the development of the company. At present, it mainly operates its own proprietary IPs and exclusive IPs.

According to its financial report of 2020, Molly, Dimoo, PUCKY, The Monsters and SKULLPANDA are the top five IPs of POP MART, contributing 14.2%, 12.5%, 11.9%, 8.1% and 1.6%, respectively, to the company’s revenue.

According to the latest financial report, Dimoo had overtaken Molly to become the most lucrative IP in the first half of 2021. The two IPs had generated income of RMB 205 million and 204 million, respectively, accounting for 11.6% and 11.5%, respectively.

During the reporting period, POP MART launched the MEGA collection, a high-end pop culture toy product line. The oversized figure is available in two sizes, which are priced at approximately RMB 1,000 and RMB 4,000, respectively.

2.

In September 2020, POP MART opened the first overseas direct-sale store in the International Trade Center, Gangnam District, Seoul, South Korea, and started its overseas expansion.

POP MART opened the second overseas store in Singapore in January 2021, the first store in Canada in March 2021, which is located at the New Town Plaza, Richmond, Vancouver, and its second store in South Korea at the end of April 2021.

“The current overseas market is a blue ocean for pop culture toys. So we are going to step up overseas expansion this year. In Singapore, for example, we will open the second store, and the first store in Malaysia. Meanwhile, we will advance further in the North American market. We are confident that the pop culture toy industry will grow by leaps and bounds in the overseas market," said Wende, vice president of POP MART.

Since last year, the company has enhanced the personalized design for its domestic stores, each one of which has a distinctive look.

As of June 30, 2021, POP MART has opened a total of 215 retail stores in China, an increase of 28 stores from the 187 stores at the end of 2020, and an increase of 79 stores compared to the mid-term of 2020.

3. 

As of June 30, 2021, the number of registered members of POP MART had reached 11.415 million, an increase of 4.015 million from 7.4 million on December 31, 2020. The sales contributed by members accounted for 91.8% and the repurchase rate of members was 49%.

Meanwhile, POP MART also launched the first branded podcast to promote pop culture, and held 9 authorized IP exhibitions at malls and 4 salons for fans.

4.

POP MART co-invested in Shisanyu, a traditional Chinese costume brand, and exclusively invested in GALAXYCAT, a pan two-dimensional retail brand in 2021.

It is also one of the producers of two animations: New Gods: Nezha Reborn, and Green Snake.

Beijing POP MARK Park Management Co., Ltd. was established with a registered capital of RMB 10 million in August 2021. Its business scope includes urban park management, amusement parks, ticket agency, performance venue management, performance brokerage services, and entertainment activities.

“Hopefully, POP MART will not only be associated with pop culture toys but also park management, content service and games in the future. We will start the other lines of business gradually,” said Wang Ning, founder of POP MART.