| Read online Welcome to the Alts Sunday Edition. In the US, we all know the big toy brands listed on stock exchanges: Mattel and Hasbro — owners of brands like Barbie, Hot Wheels, GI Joe, and Magic: The Gathering. Then there’s Funko, the specialist in vinyl pop culture collectibles — a company that carved out a niche by licensing every franchise under the sun. But America has nothing like Pop Mart. Pop Mart is a global toy giant you’ve likely never heard of. It sells products that feel similar to Funko — collectible vinyl figures designed for fans and collectors — yet it operates on an entirely different scale — far larger, more aggressive, and more ambitious. Pop Mart is a global phenomenon, a retail empire spanning 20 countries and nearly 3,000 outlets across Asia. It’s valuation has eclipsed Hasbro, Mattel, and Funko combined — and now it has America in its sights. And yet, outside of Asia, it feels like nobody is talking about it. How did a company you’ve barely heard of get so big? Why are blind boxes (mystery toys) fueling such massive demand? Can Pop Mart expand successfully into the West — or will cultural differences and tariffs block its path? Is this China’s Hello Kitty moment, or just another collectibles bubble waiting to pop? And if Pop Mart does succeed — will the biggest opportunities be in its stock, or its rarest toys themselves? Today, we’ll dive deep into the world of Pop Mart — and what its rise tells us about the future of IP, collectibles, and global consumer culture. 🎧 Bonus Podcast Stefan talks Pop Mart with Michael Thompson from Fear and Greed. Listen here or watch on YouTube Let’s go 👇 Christian Braun is the founder of hobbyDB — a database of every collectible ever made. He has worked in collectibles since he helped his older brother write a book about model cars 36 years ago. Christian is an active Alts community member and contributor. His previous issues for Alts include a look at KAWS and investing in vintage Porsche posters. 🥙 Invest in the future of healthy food Subscription meals | repeat customers | recurring revenue Vegetable and Butcher is building the next great brand in healthy prepared meals — subscription-based, chef-crafted, nutrient-packed, and ready to eat. | Founders Turner Hoff and Ariane Valle have built a wellness brand approaching a $10m run rate, and a new manufacturing & distribution facility, increasing production capacity by 10x |
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What is Pop Mart? Origins Pop Mart’s story starts in Beijing in 2010, when a young entrepreneur named Wang Ning opened a small store selling a mix of pop culture merch — toys, comics, T-shirts, phone cases, and a handful of collectibles. At first, it was just another trendy boutique catering to urban youth. But by 2014, Wang realized toys weren’t just part of the store — they were the future. Pivot to toys That year, Pop Mart pivoted to focus almost entirely on collectible designer toys, created in collaboration with independent artists. The true breakthrough came in 2006, when Pop Mart partnered with Hong Kong artist Kenny Wong to launch the Molly series — a line of vinyl figures featuring a wide-eyed, stylish girl with an tons of different outfits and personas. | The character Molly struck a chord with young Chinese folks — combining nostalgia, artistry, and the thrill of unboxing the unknown through "Blind Boxes". (More on these in a minute). |
Almost overnight, Pop Mart went from niche boutique to cultural phenomenon. Massive IPO In December 2020, Pop Mart went public on the Hong Kong Stock Exchange, raising $676 million in its IPO — over 5x the amount Funko raised in its own 2017 listing. Today, Pop Mart is worth 5x more than Mattel, 3.5x more than Hasbro, and nearly 120x more than Funko. Pop Mart isn’t just a toy retailer. It’s a sprawling brand-building machine. They're developing original characters, opening theme parks, and exporting a uniquely East Asian style of collectible culture to the world. The company has lower costs and higher margins than other collectible brands — on par with luxury brands. And it’s only getting started. How Pop Mart built an empire Original characters At the heart of Pop Mart’s success is its characters — not borrowed or licensed from movies, but original creations, painstakingly developed in collaboration with artists. Instead of chasing existing trends, Pop Mart developed its own worlds: vibrant, emotional, and instantly recognizable. This focus on homegrown intellectual property — not borrowed IP — sets Pop Mart apart from brands like Funko, which rely heavily on external licensing. They are now the foundation of a growing empire of toys, merchandise, fashion collaborations, and even theme parks. In a way, Pop Mart is following a model pioneered by Japanese giants like Pokémon and Sanrio (the makers of Hello Kitty): create unforgettable characters first, then build massive businesses around them. But while Hello Kitty is all sweetness and innocence, Pop Mart’s roster brings something different to the table — a sharper, more artistic edge. These characters aren’t just "cute"; they’re stylish, moody, and sometimes even subversive — designed to resonate with young adults, not just children. Molly was created by artist Kenny Wong in 2006 — a wide-eyed girl with an ever-shifting wardrobe, embodying playful imagination and childlike wonder. Dimoo, dreamed up by Ayan Deng, is a dreamy, cloud-haired child who drifts through a whimsical fantasy world. Skullpanda, from the mind of Xiong Miao, flips the script — a gothic fashion character with skull motifs and a rebellious attitude. | Working closely with independent artists, Pop Mart has developed a stable of characters — like Molly, Dimoo, and Skullpanda — who have become cultural icons across Asia, and licensable IP in their own right. |
Together, they form a cast that feels less like mass-produced merchandise and more like a living, breathing ecosystem of art, fashion, and emotion — tailor-made for the Instagram era. And as the Pop Mart universe expands, so does its potential. Each new character isn’t just a toy — it’s a seed for future films, games, clothing lines, and global brand partnerships. Blind Boxes are now big business Surprise sells Pop Mart’s characters may be the soul of the brand, but blind boxes are its beating heart. A blind box is exactly what it sounds like: a surprise package, where you don’t know which figures you’re getting until you open it up. Think of it like a pack of trading cards. You’re bound to get at least a few decent ones, and if you’re lucky, you’ll get something really rare that everyone wants. (This is known as the Chase — the rarest figure in a particular series). Opening a blind box is like giving yourself a present — part purchase, part dopamine hit. The element of surprise is the whole point. They’re not just selling toys; they’re selling anticipation. Born in Japan, perfected in China The Blind Box idea isn’t new. Japan pioneered the blind box format ages ago, by pioneering two key trends: Fukubukuro, which translates to “Lucky Bag.” These mystery grab bags were invented in the 1860s by Tokyo’s Ginza Matsuya Department Store. The bags were filled with leftover stock and sold on New Year’s Day. Gashapon, which are capsule toys dispensed from vending machines. These were initially marketed by Bandai. | The Japanese figured out that uncertainty is stimulating. Our brains light up in anticipation of surprise rewards. It’s the same mechanism that powers slot machines, gacha games, and loot boxes in video games. |
Robo Shops: Pop Mart’s vending machine strategy Both became ingrained in Japanese shopping culture. But it’s China where blind boxes have truly exploded. In China, blind boxes have become a kind of retail entertainment for urban Gen Z. It’s a way to shop, flex, and share on social media all at once. Pop Mart has seized these ideas and scaled it like no one else. How? By creating blind box vending machines, called Robo Shops. We’ve discussed how embedded vending machines are in Asian culture. Pop Mart’s Robo Shops now dominate shopping malls and high-traffic pedestrian areas across China, Southeast Asia, and Australia. | Pop Mart's new Robo Shop in Melbourne, Australia. Photo courtesy of Stefan. |
The Robo Shops have been a major driver of their growth, because they’re relatively low-cost to deploy compared to full retail stores, and tap into impulse buying. Pop Mart’s rapid expansion In China Pop Mart is scaling faster than any collectible brand in recent memory. Their loyalty scheme (Pop Mart Membership) has more than 46 million members in the PRC — more than the population of Canada and Australia combined. As of May 2025, Pop Mart operates over 2,600 Robo Shops across 30 countries. This is in addition to their 374 traditional retail stores. For comparison, Funko operates zero vending machines, and a grand total of three stores: one at their HQ in Washington, one in Hollywood, and one in partnership with Snoop Dogg in Inglewood: “Tha Dogg House. Roughly 85% of these are in China. But Pop Mart’s international footprint is growing fast. Globally By the end of 2024, the company operated an estimated 120 stores and 170 Robo Shops outside of China (excluding the US). Revenue from non-PRC markets surged 375% year-over-year to $700 million, now accounting for nearly 40% of Pop Mart’s total revenue. That includes a modest but rising US contribution, with most of the international growth coming from Asia-Pacific, UK, and Australia. One secret weapon? Influencers. Pop Mart has done a stellar job reaching out to Influencers. Their ultra-photogenic toys have helped the brand explode across TikTok and Instagram. This strategy has paid off especially well for Labubu Dolls, the mischievous, “ugly cute” creatures from the brand’s Monsters line. In 2024, this business unit alone brought in $420 million (up an astounding 715%YoY) and has actually been doing better outside China. The most famous endorsement is probably from Lisa from K-Pop mega group Blackpink (and HBO's White Lotus.) The style icon and global megastar is a huge fan of Labubu dolls, and has promoted her collection on Instagram, fueling demand across Southeast Asia and beyond. | If you aren’t into K-Pop, you probably won’t recognize Lisa from Blackpink. But if you’re a fan of The White Lotus, you’ll recognize her as “Mook” from Season 3. |
Cracking America will be a challenge Breaking into America won’t be easy. Legacy toy brands still dominate shelf space. Blind box culture isn’t as entrenched. And with tariffs on Chinese imports, the path to American hearts & wallets is far from guaranteed. But Pop Mart is making a serious push. In 2024, the company quietly ramped up its US investment. According to LinkedIn data, its US headcount surged 6x, now with 125 employees. As of March 2025, it operates 22 stores and 39 Robo Shops across the country. But Pop Mart is still a mystery to most people in the US. Can Americans fall in love with characters Molly and Labubu the way Asia has? Or will cultural gaps and trade headwinds limit Pop Mart to niche status? The answer depends on whether Pop Mart can turn into something larger than just a toy company... Evolving into a media business Pop Mart sells toys, but it’s building brands. And increasingly, it wants those brands to live beyond the toy shelf. I believe Pop Mart is trying to become Sanrio (the makers of Hello Kitty) but with multiple characters. Where Sanrio built an empire on the back of a single character, Pop Mart is trying to create a multi-character IP universe, where each figure has the potential to anchor its own franchise. It’s an ambitious reversal of the Hello Kitty model. Sanrio started with a character and added products around it. Pop Mart started with the products — and is now backfilling story, emotion, and media presence. Early steps toward animation & film In 2021, Pop Mart launched an internal studio, Pop Mart Films: a dedicated division for developing animated content. They have announced plans for a web series, short films, and even feature-length projects. Some characters, like Skullpanda, have already appeared in stylized animation shorts to deepen their storylines. But so far, most of these are still in early development or pilot stages. These are brand-building tools, not breakout entertainment franchises. Pop Land and the world-building push In 2023, Pop Mart opened Pop Land in Beijing — its first ever theme park. While Hasbro and Mattel have flirted with entertainment parks (e.g. The Gameroom, Hasbro City, and the upcoming Mattel Adventure Park in Arizona) Pop Mart is betting on parks where its own characters are the main attraction. And video games are likely to become a big part of what they do as well. In June 2024, Pop Mart launched its first mobile game in China, "Dream Home" — a home simulation and party game where players decorate their own floating island home. They can also visit homes their friends have built, throw parties together, and trade digital collectibles. Investing in Pop Mart’s products Pop Mart trades publicly on the Hong Kong Stock Exchange.But Pop Mart isn’t just a stock — it’s also an emerging collectible asset class. While most of this is not “investment-grade”, certain Pop Mart figures — particularly rare versions of Molly and Skullpanda — have appreciated 5–10x in value on the secondary market. One of the most coveted pieces is Silent Blue, Pop Mart’s very first art toy. It still occasionally trades for under $5,000, though it's becoming harder to find. Compare that to Funko, where the highest-valued POP figure now sells for $200,000 — and the opportunity does feel a bit enticing. For collectors and investors, the most promising items tend to follow a few patterns: Production Era: Items released between 2006 and 2017 often hold the most long-term value Size & Format: Larger-format pieces (like 1000% scale) tend to perform better — similar to Be@rbrick Collabs & Artist Cred: Toys featuring major collaborations or respected artists (e.g. the Mega Space Molly 1000% by Keith Haring, or the Wild Things Labubu) carry stronger collector cachet Price volatility & market maturity That said, this market is still early-stage and volatile — especially outside of Asia. Prices on platforms like eBay, Xianyu, and Taobao can vary wildly for the same figure depending on timing, condition, and location. But price discovery is accelerating. Platforms like hobbyDB are working on structured Pop Mart price guides, and as tracking tools improve, so will transparency and confidence in valuations. A word on fakes If you're investing in rare Pop Mart pieces — especially newer Labubu figures — authenticity is critical. Counterfeits have flooded the market, with fake Labubu figures often difficult to distinguish from the real ones. Some are louder in color, others more muted — but both can fool the untrained eye. | When in doubt, always cross-check with trusted databases, retailer records, or price guides. In this case the less contrast version is genuine. |
Closing thoughts Pop Mart doesn’t just want to make toys. What it’s really building is an IP empire — one that spans stores, vending machines, TikTok, theme parks, and someday, the big screen. To break through in America — or become the next Sanrio or Pokémon-style franchise machine — Pop Mart will need to double down on animation, gaming, publishing, and possibly even acquire other IP portfolios. Heck, it’s not hard to imagine Pop Mart buying Funko outright. Or perhaps they start with Kidrobot — a smaller brand with major creative clout (check out their Labbit line by Frank Kozik!) One thing is clear: Pop Mart isn’t just riding trends, it’s shaping a new wave of collectible culture. And yes, you can ride the wave too. Rare Pop Mart figures — especially early or artist-led releases — are already appreciating, and the market is still under the radar in the West. If you can buy early Pop Mart pieces they should prove to be an excellent investment. You, your neighbors, and your kids probably haven’t heard of Pop Mart yet. But once that changes, the window will close fast. 👹 That's it for today! Thanks for reading, I'd love to hear your thoughts, comments, or critiques in the Alts Community. See you next time,
Christian Disclosures This issue was co-authored by Christian Braun from hobbyDB, and Stefan von Imhof from Alts This issue was sponsored by Vegetable & Butcher Alt Assets, Inc. has no holdings in any companies mentioned in this issue. Stefan does not own any Labubu dolls. In fact he had never heard of Pop Mart until very recently. HobbyDB did not pay for placement in this issue. This issue contains no affiliate links. | 