Nation's own toy story set for blockbuster run

The company already distributes products in 30 to 40 countries. Top Toy believes opening physical stores helps establish stronger consumer connections in regions where pop culture from Japan, South Korea and the US already has strong fanbases, Kong said.

Meanwhile, Pop Mart reported 7.97 billion yuan in revenue in 2024, up 52.3 percent year-on-year.

Most of its rapid success has been built on the appeal of Labubu — a tiny plush toy creature with wild hair, a mischievous smile, and oversized eyes.

Created by Hong Kong-born artist Kasing Lung, Labubu belongs to The Monsters series. From viral unboxing videos to long queues at midnight launches, the character's quirky charm has captured the imagination of fans in China, Japan, and Southeast Asia, turning each new release into a cultural event.

Numerous scalpers have traveled to Japan to bulk buy stock of the doll. On some secondhand trading platforms, Labubu blind boxes originally retailing for around 100 yuan, are being resold at prices ranging from 229 yuan to as high as 3,999 yuan.

In a research note issued on June 10, Morgan Stanley raised its price target for Pop Mart to HK$302($38.47), up from HK$224, citing continued optimism about the company's growth trajectory.

Morgan Stanley's analysts pointed to Pop Mart's ability to consistently deliver attractive new products as a key driver of sustained momentum. They also see the company emerging as a preferred partner for global IP owners looking to monetize and expand their brands through designer toys.