POP MART's building blocks and desserts made their debut at the Service Trade Fair, continuing to lead innovation in the trendy toy industry

On September 12, the 2024 China International Fair for Trade in Services (referred to as "CIFTIS") opened in Beijing, focusing on "sharing intelligent services, promoting open development" with over 450 Fortune Global 500 companies and industry leaders participating offline. During the fair, POP MART (09992.HK) showcased its core IPs such as MOLLY, THE MONSTERS, and CRYBABY, featuring not only classic figurine series but also new product categories like building blocks and desserts for the first time at the fair. The combination of trendy IP creative play methods and a diverse range of figurine products attracted a large number of visitors, making the booth a popular spot at the event.

The surprise appearances of building blocks and desserts created a buzz with visitors at the POP MART booth in Shougang Park. Many on-site spectators lingered around, taking photos and making sure to leave with their favorite IP products. Despite the small booth size, the popularity rivaled that of peak times at POP MART's offline stores.

It was revealed that this year, POP MART set up two booths in Shougang Park representing the digitalization and intelligence of service trade. In the Chaoyang District of Beijing, POP MART focused on showcasing new product categories such as building blocks and desserts. In June, POP MART launched its first building block product "THE MONSTERS Forest Secret Base Series Building Blocks," offering consumers a unique immersive IP building experience with innovative gameplay. The product quickly sold out shortly after its launch, garnering industry attention.

The dessert display also captured numerous eyes. POP MART's dessert store recently opened in POP MART City Park, with products inspired by its well-known IPs seamlessly integrating IP images with creative desserts. From delicious mousse cakes to exquisite dessert snacks, the products not only provided a visually rich experience but also greatly satisfied consumers' taste buds. Currently, the main products at the dessert store include LABUBU Art Cake, Xiao Ye Cheese Strawberry Mousse, MOLLY Orange Cheese Mousse, among others, showcasing a variety of rich products and kicking off a delicious journey for attendees.

At the Capital Copyright booth, POP MART showcased its IP THE MONSTERS Beijing Limited Edition series, featuring cultural elements of ancient Beijing such as stone lions, kite flying, and sugar-coated haws, depicting the various aspects of life in Beijing's hutongs and awakening memories of old Beijing for a generation through trendy play. Additionally, new IPs like MOLLY, SKULLPANDA, DIMOO, Hirono Xiao Ye, etc., made appearances one after another, attracting a large number of on-site spectators.

IP innovation driving Chinese trendy play towards the world

CIFTIS is the world's only national-level, international, comprehensive service trade platform, covering 12 major areas of service trade. This year's fair saw 85 countries and international organizations participating in exhibitions or events in the name of national governments or headquarters, with hundreds of activities on-site and over 200 integrated innovative achievements being released, making it an international stage for showcasing industry innovation It is understood that this is POP MART's fifth year participating in the Service Trade Fair. Chen Xiaoyun, Vice President of POP MART International Group, said, "Compared to previous years, this year, in addition to classic trendy toy products, we have also brought a large number of innovative products, which have received a very enthusiastic response on-site. As an old friend of the Service Trade Fair, we hope to showcase the diversity of IPs on this international stage, allowing more global brands to see the deep extension capabilities of trendy toy IPs. We believe that with the continuous expansion of the group's global business, more global consumers will fall in love with Chinese trendy toys."

From simple trendy toy products to a diverse IP world, POP MART has built a rich commercial framework around IPs, bringing more diversity to consumers. In recent years, POP MART has continuously innovated in expressing IPs, consistently bringing new surprises to consumers. According to its recently released 2024 interim report, POP MART's retail business was split for the first time into four major segments: trendy toys, MEGA, plush toys, derivatives, and others. Among them, the revenue from trendy toys accounted for less than 60% for the first time, the plush toy category grew by 994%, becoming a phenomenon-level hot product. The building block category was successfully launched, significantly enhancing the IP extension capabilities.

Analysis believes that various innovative expressions such as building blocks, plush toys, games, desserts, etc., have shown more possibilities of the commercial value of IPs to the outside world, bringing consumers a richer experience and companionship. Continuous innovation has also continuously increased the global influence of Chinese trendy toy IPs. This year, POP MART successively opened specialty stores at globally renowned landmarks such as Los Angeles in the United States, Banahill in Vietnam, the Louvre in France, and Oxford Street in the UK, with a significant increase in overseas performance. With the further expansion of POP MART's global business map, more and more overseas consumers will fall in love with Chinese trendy toys