Is Labubu the next Hello Kitty? Analysts debate the limits for China's Pop Mart
Pop Mart, the company behind the hit collectible character Labubu, was virtually unknown outside mainland China before 2024, but now some analysts are comparing its success to that of Sanrio and its Hello Kitty property, suggesting that the Beijing toymaker could have created a new playbook for cultural exports.
Labubu, a sharp-fanged but cute little monster that is often sold as a plush clip-on charm for handbags, has attracted high-profile fans including the family of football star David Beckham. Its popularity pushed Pop Mart's Hong Kong-listed shares to a record high of HK$234 last week, after the company's market capitalisation topped
HK$300 billion (US$38 billion) the week before. The rally followed the April debut of the
Labubu 3.0 series , which drew long queues in London, New York, and
Dubai
'For years, there's been a push [for Chinese companies] to
'go global' by exporting heritage and storytelling,' said Chris Pereira, founder and CEO at iMpact, a brand consulting company in Singapore. 'But Labubu flips that script. It's not trying to explain China, it's just trying to be lovable.'
The sustained hype around Labubu had 'great similarities' to Hello Kitty, which turned 50 last year, according to JPMorgan Chase. The US bank said that beyond common traits in character design and business model, Labubu was also catching up with Hello Kitty in areas such as merchandising, licensing and Google Trends search interest.
With international sales surging more than 480 per cent year on year in the first quarter, led by increases of 900 per cent in the US and 600 per cent in Europe, Pop Mart has become a new favourite among investors.
Pereira said the popularity of the intellectual property (IP) opens the door for a wave of Chinese brands to succeed not because they are about China, but because they tap into universal emotions through strong design and clever marketing. 'They are telling a successful Chinese story without ever mentioning China,' he said.
JPMorgan Chase initiated coverage of Pop Mart last week with a rating of overweight, and set its price target at HK$250 – the most bullish prediction among 43 analysts covering the toymaker.
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