Introduction

Globalization has become an inevitable strategic choice for Chinese enterprises. Nevertheless, companies face substantial challenges in overseas expansion. These include external risks arising from fluctuations and uncertainties in the global political, economic and financial environment, as well as the complexity and cross-border disparities of international markets. Internally, enterprises must achieve comprehensive upgrading across corporate culture, management, talent teams and infrastructure to meet the demands of global operations.

The HKAII Afternoon Tea · Enterprise Globalization Series shares corporate case studies to explore the core challenges encountered by Chinese businesses going global. By summarizing proven best practices, we distill key success factors, delivering a full-spectrum perspective and actionable practical experience for overseas expansion.

On November 13, 2025, a group of industry experts and investors gathered for the second seminar of the series. They conducted open, in-depth discussions on Pop Mart—a phenomenal IP enterprise—from multiple perspectives. Mr. Zhang Liangwei, Co-Head of Research & Chief Analyst for Media, Internet and Overseas Research at Soochow Securities Research Institute, shared key takeaways from an in-depth review of how Pop Mart unlocks commercial value and corporate growth through image-based IP. Below is the curated transcript for your reference.

The IP industry boasts enormous upside yet poses high barriers to sustainable success. This review analyzes the rules behind the commercial value of image-based IP and summarizes growth lessons for IP enterprises, based on Pop Mart’s development journey. Pop Mart’s impact on China’s domestic IP sector may be far-reaching beyond market expectations: the company has proven that Chinese IP players can tap global markets with image-based IP, empowered by China’s robust supply chain and premium operational capabilities.

First, Pop Mart has built a fully closed loop for IP commercialization. The commercial value of its image-based IP is not absolutely tied to in-depth content storytelling. Premium image-based IP features lower audience entry barriers, broader fan reach, and strong flexibility to adapt to evolving demands and regional differences—granting greater commercial potential. With refined operation, IPs balancing mass appeal and artistic value (e.g., MOOLY generating RMB 2.1 billion in 2024, LABUBU RMB 3 billion) or those with outstanding artistry and niche popularity (e.g., Skullpanda at RMB 1.3 billion, Wonyou RMB 700 million in 2024) can all achieve remarkable commercial returns. Sanrio’s Hello Kitty also ranks among the world’s highest-earning IPs in 2025, with global media licensing revenue reaching USD 29.3 billion.

Second, premium image-based IP enjoys a longer lifespan than widely anticipated. MOOLY, first launched nearly 20 years ago, maintained a CAGR of 22% from 2019 to 2023. Many flagship Sanrio IPs such as Cinnamoroll, Pompompurin, Pochacco and Hello Kitty have sustained rising popularity for years.

Third, premium IP paired with strong platform operation defines core competitiveness for image-based IP enterprises. Pop Mart has established a complete system covering IP incubation and full lifecycle management, excelling at both blockbuster creation and long-term IP cultivation.

Once a blockbuster IP is launched—with most artist IPs fully owned or exclusively licensed, plus self-operated offline channels—the company captures majority profits. Its proactive inventory control, undertaken while bearing full stock risks, creates short-term supply shortages that further amplify product popularity, driving far greater market hype than competitors’ IPs (LABUBU serves as a typical flagship example).

Pop Mart’s two top-tier IPs, LABUBU and MOOLY, provide solid cash flow and traffic support. Meanwhile, its mature incubation and operation system—including in-house designer teams, self-owned channels, accumulated operational experience and multi-series sales data—enables continuous development of new IPs and a diverse portfolio of mid-tier characters. Organizational adjustments, such as restructuring product divisions by category and launching new studios, further fuel exploration of diversified IP styles, expanded product lines and derivative development, unlocking incremental commercial value across the IP matrix.

From a competitive perspective, Pop Mart now competes with world-class integrated IP groups with robust cash flow, risk tolerance and mature IP incubation systems—such as Sanrio and Disney. Leveraging its diversified IP portfolio and powerful operational capabilities, Pop Mart has successfully entered culturally distinct overseas markets, evolving into a truly global IP enterprise.

Note: The above represents core views shared by the guest. For full details, please refer to the official WeChat article from Soochow Securities Research Institute: Pop Mart · Zhang Liangwei | In-depth Review: Commercial Value of Image-based IP & Corporate Growth Insights.