Shanghai PTS regains a market value of over 100 billion after the trendy exhibition, exploring the evolution of Chinese IP through POP MART

Currently, the overall consumption environment is under pressure, but the trendy toy consumption remains hot.

On the afternoon of October 22nd, one of China's hottest trendy toy companies, POP MART, announced the latest business performance for the third quarter of 2024. The announcement shows that in the third quarter, POP MART's overall revenue (unaudited) increased by 120%-125% year-on-year, with revenue in mainland China increasing by 55%-60% year-on-year, and revenue in Hong Kong, Macao, Taiwan, and overseas increasing by 440%-445% year-on-year.

Subsequently, on October 23rd, POP MART's stock price surged by 18.52%, with a market value exceeding HKD 100 billion once again. As of the close on October 24th, POP MART's stock price closed at HKD 75.85 per share, with a total market value of HKD 101.9 billion.

Not only being sought after in the capital market, from October 18th to 20th, the 2024PTS Shanghai International Trendy Toy Expo hosted by POP MART also triggered a buying frenzy among consumers. Many trendy toy products were sold out early, making them hard to come by.

This prosperity is inseparable from POP MART's in-depth exploration and expansion of the trendy toy industry. In this process, Chinese trendy toy IPs have also continued to evolve.

I. Trendy Toy Consumption is Hot

On October 18th, the 2024PTS Shanghai International Trendy Toy Expo hosted by POP MART officially opened at Hall 3 of the Shanghai World Expo Exhibition & Convention Center.

DoNews observed on-site that despite it being a Friday, the exhibition was still bustling with people. The entry didn't start until 9 a.m., but before 8:30 a.m., the queue had already extended hundreds of meters outside the exhibition hall, with many exhibitors bringing their own stools, food, water, and other supplies, fully prepared for the queue.

Image Source: DoNews

In addition, DoNews learned from social media that some exhibitors had arrived outside the exhibition hall to line up for registration as early as the daytime on the 17th. This level of enthusiasm is evident.

According to POP MART's official introduction, this year, the Shanghai PTS Trendy Toy Expo unveiled a series of blockbuster new products, such as SKULLPANDA Weaving Spine, ZIMOMO FUZZY-MOSS figurines, THE MONSTERS exhibition figurines, MOLLY New Moon Crown figurines, Hirono x Little Prince series figurines, and POP MART Cute Grains Toast Fridge Magnet series.

The main visual IP of this year's Shanghai PTS Trendy Toy Expo, SKULLPANDA, also released its first plush toy "Soft and Tough" on-site.

Image Source: DoNews

These new products have become hot items that attendees are eager to get their hands on DoNews noticed on the scene that SKULLPANDA, one of the popular IPs of POP MART, was quickly occupied by rushing exhibitors after opening at 9 o'clock. The exhibition hall was crowded with long queues, and after only six or seven minutes, the SKULLPANDA staff announced that "the queue has ended".

It is worth noting that this year's Shanghai PTS Toy Fair is set on the second floor of the exhibition hall. In addition to security checks on the first floor, attendees still need to queue for identity verification before entering the second floor.

Many exhibitors expressed regret to DoNews that they did not buy the toys they wanted. "I don't even expect limited releases anymore, I can't compete, I simply can't! Many cute dolls at the booths were either sold out early or just for display without sales, so I can only take a look and take photos." One exhibitor expressed regret.

In the self-service pickup area queue, it was also crowded, and the hot sales of trendy toys made the purchasing process lengthy. Even the "lucky ones" who bought their favorite toys found it equally difficult to get the goods.

Image Source: DoNews

II. Gathering of Trendy IPs

Every year at the exhibition, in addition to the release of new trendy products, artist interactions are also a highly anticipated segment, and this year is no exception.

According to the official introduction of POP MART, many top IPs in the trendy toy industry such as MOLLY, SKULLPANDA, THE MONSTERS, DIMOO, Hirono, and other artists of major IPs were present at the exhibition for autograph sessions and intimate interactions with fans.

Image Source: POP MART

In addition, some relatively lesser-known IPs also launched designer autograph sessions, signings, and exchange sessions, attracting many enthusiastic fans to participate. Some fans even expressed that they attended the exhibition just to meet and interact with their favorite niche IP designers.

Numerous trendy IPs participated in this exhibition, in addition to the major popular IPs under POP MART, other popular IPs like SooyaStudio, Amalilith, and other popular IPs attracted a lot of fan attention; potential IPs like Star People, Zsiga, KUBO all made appearances; heavyweight IPs like CRYBABY, Peach Riot also made a grand debut. At the same time, there were many influential creators within small circles who gained more attention through the PTS platform.

DoNews observed that in the exhibition area G where niche IPs gathered, a brand new IP Hamiya attracted many exhibitors to watch. This IP only joined the trendy toy exchange platform Lockerr on September 13 and its first-generation products will be released in November

Image Source: DoNews

According to the staff of Hamiya, the Shanghai PTS Trendy Play Show is Hamiya's first offline exhibition. Due to the large number of attendees, even the assistant's WeChat account was flagged for risk. The newly established WeChat fan group attracted hundreds of fans on the first day of the exhibition. The stickers prepared for giveaway and the refrigerator magnets, postcards, and other items for sale were far from enough to meet the enthusiastic fans' demands.

At the Shanghai PTS Trendy Play Show, cases like Hamiya, a niche IP, leveraging the influence of the exhibition to be accurately pushed to trendy players are numerous.

III. Expansion and Evolution of Trendy Play IPs

It is worth noting that under the exploration of POP MART and other trendy play IPs, the value of trendy play IPs goes beyond just toys and also includes practical value.

DoNews noticed that the Star People IP not only has toys but also launched unique socks, hoodies, and other products with the IP's unique attributes and practicality.

Image Source: POP MART

Similarly, in addition to toys, the Ze Liang Suo IP also offers products such as umbrellas, water bottles, mini suitcases, etc. These IP products that combine ornamental and practical features are also sought after by consumers.

Image Source: DoNews

POP MART, in the first half of the year, also opened small wild IP lifestyle pop-up stores in major cities, introducing new categories such as clothing, home furnishings, and peripherals. The unique design language resonated with fans emotionally, garnering high popularity and helping the IP achieve a revenue of 250 million yuan in the first half of the year, a year-on-year increase of 124.3%.

At the same time, POP MART's exploration of new toy categories has never stopped. For example, the explosion of thermoplastic plush toys that started last year. The thermoplastic process not only makes the facial expressions of plush toys more vivid but also makes them easier to display and match, becoming a "must-have" for young people. The further outbreak of categories such as plush toys and building blocks in 2024 further demonstrates the strong extension ability of trendy play IPs.

As a carrier for many IPs to showcase—PTS Trendy Play Show is also constantly evolving. In early 2021, POP MART announced the major upgrade of the biannual BTS/STS International Trendy Toy Show to the POP TOY SHOW.

This year, POP MART for the first time overall upgraded the brand booth area to the "Bubble District," creating a unified district atmosphere for each independent booth, while also adding a trendy art and lifestyle section. On-site, there are not only trendy action figures but also IP-themed food, building block competitions, celebrity performances, etc. For example, at the gaming carnival scene, there are plenty of interactive games waiting for consumers to unlock

Image Source: DoNews

Centered around trendy IP as the core, POP MART is also attempting to enter more fields. Previously, Wang Ning, Chairman and CEO of POP MART International Group, stated that whether it's trendy toys, theme parks, games, exhibitions, or future film and television projects, the core logic of POP MART has always been to hatch more popular super IPs in a way that fits contemporary characteristics, and then expand industrialization around these IPs.

POP MART is no longer content with just domestic development. In August this year, the second overseas POP TOY SHOW by POP MART was held in Singapore, attracting over a hundred trendy art artists and nearly 30,000 attendees over the three-day event.

According to official information from POP MART, since the first trendy toy exhibition in 2017, POP MART has successfully held over ten international trendy toy exhibitions worldwide, attracting over 300,000 attendees and over 500 artists from the United States, the United Kingdom, Spain, Japan, South Korea, Malaysia, Singapore, and other countries.

Image Source: DoNews

The overseas success of POP MART can be seen from its performance. In the first half of 2024, POP MART's revenue from Hong Kong, Macau, Taiwan, and overseas regions increased from 376 million yuan in the same period last year to 1.351 billion yuan, a growth of 259.65%. Specifically, the Southeast Asia region increased from 96.094 million yuan in the same period last year to 556 million yuan, a growth of 478.3%.

Through POP MART's overseas development, more and more Chinese IPs have been able to go global, being seen by the world. Undoubtedly, Chinese IPs have ushered in their best era