Labubu-Maker Pop Mart Diversifies into Jewellery with New Concept Store
"Blind box" toymaker Pop Mart, which has seen frenzied sales worldwide for products related to its ugly-cute Labubu character, opened its first jewellery store in Shanghai on Friday.
The jewellery concept store, called Popop, sells accessories adorned with Pop Mart's top-selling characters, including Labubu, Molly and Skullpanda.
While Chinese consumption remains subdued in the face of a prolonged property downturn and sluggish economy, Pop Mart's affordable and adorable toys have remained in high demand both at home and abroad, driving its share price up more than 200% so far this year.
Investor Zhang Ming, 34, who owns Pop Mart stocks worth 100 million yuan ($13.92 million), flew from his base in the southwestern Chinese city of Chongqing for the opening to check out the new store type and decide whether to increase his shareholding in the company.
"I believe that the pricing and target audience for this brand are particularly well-suited, and I am confident that Pop Mart could potentially become China's version of Disney," Zhang said, predicting that the company's market cap could double from its current $45.65 billion valuation.
Along with some Disney characters and others related to anime, comics and popular video games, Pop Mart's characters are seen as fulfilling what has been called "emotional consumption", which sees young consumers spend on affordable luxuries that bring joy into their lives.
Fang Ke, 35, who has a birthday coming up this month decided to treat herself to a 699 yuan Labubu bracelet at the opening.
"I've loved Pop Mart for a long time; it's good-looking, brightly colored, and also has a visual impact," she said. "My daughter likes it too."
At Popop, prices start at around 350 yuan for charms or a simple silver ring, and go as high as 2699 yuan for necklaces adorned with metallic models of the characters. Most pieces are priced at under 1,000 yuan.
At a traditional Pop Mart store, the "blind box" toys that the chain is best known for generally sell for 69 yuan and up, but consumers have shown a willingness to shell out much more for limited editions.
Earlier this week, a Beijing auction house sold a human-sized Labubu figure for 1.08 million yuan, setting a new record and marking the toy's switch from craze to collectible.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
2 hours ago
- Arab News
IMF-backed tariff reforms raise concerns for Pakistan's auto industry despite rising car sales
KARACHI: While Pakistan's automobile manufacturers are still parsing the government's new financial plan, industry experts on Friday said proposed International Monetary Fund (IMF)-mandated reforms, such as the rationalization of trade tariffs, could erode long-standing protections for local industry. Finance Minister Muhammad Aurangzeb said the government plans to reduce the overall tariff regime by more than four percent over the next five years to steer the country toward an export-led growth model in line with the IMF program. Under the National Tariff Policy 2025-30, the government aims to abolish additional customs duties (ACDs), regulatory duties (RDs) and provisions under the Fifth Schedule of the Customs Act, 1969. The goal is to simplify Pakistan's tariff structure by reducing it to four duty slabs ranging from 0 to 15%. The IMF-backed reforms are expected to lower Pakistan's weighted average tariff by 3.2% points to 7.4%, said Shafiq Ahmed Shaikh, an automobile industry expert and former general manager of Pak Suzuki Motor Company Ltd. 'These tariff cuts will reduce protection to the auto industry along with reduction of the cost of vehicles,' he said. 'It is a very sensitive point for industry… [and] must be discussed with the stakeholders for good, long-term and acceptable solutions.' PARA-TARIFFS Abdul Waheed Khan, spokesperson for the Pakistan Automotive Manufacturers Association (PAMA), said regulatory duties are designed to protect local industry and discourage unnecessary imports. 'The ACD too should gradually be abolished because such para-tariffs are not good,' he told Arab News. Para-tariffs are taxes and duties levied in addition to standard customs tariffs, such as ACDs and RDs. While often introduced to curb imports or raise revenues, they are controversial because they can create complexity, raise costs and distort trade policy. Pakistan's federal budget also proposes raising the sales tax on 850cc small vehicles to 18% to bring parity between petrol or diesel-powered cars and hybrids. 'This would increase the cost of vehicles for middle income groups,' said Khan of PAMA, which represents the local operations of Honda, Suzuki, Toyota and 16 other manufacturers. 'This is not good for our Made-in-Pakistan policy as small vehicles will go costlier at a time when people's disposable incomes are already not so good,' he continued, declining further comment on the budget. CARBON LEVY Pakistan's automobile market, long dominated by Japanese firms like Honda, Toyota and Suzuki, has recently seen new entrants, particularly Chinese and Korean electric vehicle (EV) manufacturers like BYD, SAIC and Kia, operating through joint ventures. 'The existing industry will face good competition from EV and as we know, the future is of Electric Vehicles specially from China,' Shaikh, the automobile industry expert, told Arab News. As one of the countries most affected by climate change, Pakistan also plans to introduce a carbon levy of up to Rs10 ($0.04) per liter on petrol, diesel and furnace oil over the next two years. The move is intended 'to discourage excessive use of fossil fuels and provide financial resources for climate change and green energy programs,' Finance Minister Aurangzeb said in his budget speech earlier this week. Shaikh dismissed suggestions that the levy would raise car prices, arguing that consumers would instead begin shifting to EVs. Prime Minister Shehbaz Sharif also announced plans to impose differential taxes on the sale and import of vehicles based on engine size to promote the adoption of two- and three-wheeled EVs and reduce oil imports and pollution. Syed Asif Ahmed, general manager of marketing at MG Motors, said the 'industry is seeking clarity on recent budget.' He noted that while the finance bill was silent on hybrid electric vehicles (HEVs), social media was abuzz with reports that the government may raise the sales tax from eight % to 18 % next year. 'If true, this will jeopardize the huge investment done by almost all automakers on HEV,' Ahmed said. The MG Motors executive also warned against reduced regulatory duties on used cars and commercial imports under schemes meant for returning expatriates. '[The] used cars importers are abusing the gift, baggage and transfer of residence scheme for commercial trading,' Ahmed said. CAR SALES While stakeholders have voiced concerns over policy shifts, vehicle sales continue to show signs of recovery. Passenger car sales rose 31% in May to 11,119 units, while cumulative sales from July to May in the outgoing fiscal year increased 32% year-on-year to 94,388 units, according to PAMA data. '[The] growth is supported by a more stable macroeconomic environment, lower interest rates, easing inflation and improving consumer sentiment,' said Myesha Sohail, an analyst at Topline Securities Ltd., in a recent research note. Sohail expects this momentum to continue into the next fiscal year, driven by lower interest rates and a pipeline of new models across combustion, hybrid and plug-in hybrid categories.
Arab News
14 hours ago
- Arab News
IFC to provide $400 million loan for Pakistan's copper-gold Reko Diq mine
ISLAMABAD: The International Finance Corporation will provide a $400 million subordinated loan for Pakistan's Reko Diq copper-gold mine, according to an IFC disclosure on Friday. The loan adds to a $300 million commitment announced in April, bringing IFC's total financing for the project to $700 million. The estimated cost of the mine is $6.6 billion, to be funded through a mix of debt and equity from a consortium of lenders. 'The estimated total Project cost is $6.6bn, and it will be financed using a combination of debt and equity,' the disclosure said, adding that other parallel lenders will provide the remaining debt financing. This type of loan, known as subordinated debt, is typically repaid after other senior loans and helps absorb more risk, making it easier for other lenders to invest. Other financiers, including the US EXIM Bank, Asian Development Bank, Export Development Canada, and Japan's JBIC, are also expected to join the financing package, project director Tim Cribb told Reuters in April. Term sheets are expected to close by early in the third quarter. IFC chief Makhtar Diop said earlier this year that the institution was 'doubling down' on Pakistan, with a focus on infrastructure, energy and natural resources. Reko Diq, located in Balochistan, is one of the world's largest undeveloped copper-gold deposits. It is being developed by Barrick Gold, which holds 50 percent, with the remainder split between Pakistan's federal and provincial governments. Production is expected to begin in 2028. Barrick has projected the mine will generate up to $74 billion in free cash flow over its estimated 37-year life.
Arab News
15 hours ago
- Arab News
Pakistan stocks drop over 1,900 points amid Israel-Iran tensions
KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel's strikes on Iran, triggering fears of wider regional escalation. The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12. Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities. 'Geopolitical tensions after Israel's attack in Iran weighed down on world equities, including the KSE100,' Raza Jafri, Head of Intermarket Securities, told Arab News. 'In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan's import bill comprises of petroleum products.' He noted that Pakistan was now 'much more disciplined' economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past. Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes. 'Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,' he said. Israel launched strikes on Iran earlier on Friday, claiming Tehran was 'very close' to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
