China slammed the addiction “blind box” – but it should not FAZE POP MART

Beijing may have warned against a “blind box” but analysts are betting on it Pop Mart International – The labubu campaign will remain one of the hottest consumer brands this year.

Y en Editing further On June 20, Chinese state media daily requires tougher rules around the sale of toys with blind boxes and trading cards for eight years, such as checking the age of buyers when paying and requires parental approval.

Without naming PEIJing Pop Mart, which is outdated by Beijing, paper cut off businesses to respect young children to spend more on “blind maps” and “mysterious boxes”-the Mart’s Central Central call. The company often sells its dolls in a blind box to buyers who do not know what character is inside until they open it.

The consistently the price of POP MART stocks plunged by 12.1% per week, which ended on June 20, marking its most steep fall since the end of 2023, over the last 12 months sent a massive action that sent its shares 600% higher.

Since then, his stock has returned some soil, hovering near all the high levels in mid -June.

Comment of state media about toys for blind boxes resembles Beijing’s rules in video games in recent years that have been directed to Creating gaming addiction and uncontrolled purchases in the juvenile game.

This has led to restrictions on how long minors can play video games as part of general education crackdown Destroyed billions of dollars in The value of Chinese giants.

“The magnitude of the influence of Chinese politicians (on business) is much higher than in other countries,” said Alfred Mantasu-Hella, senior adviser to the Chinese Center at the Conference Council.

Given this, analysts consider fears of normative winds as covered as the Zers and Millennials gene, not young children, are the main demographic consumer consumer.

Montufar-Helu will largely be isolated from strengthening regulation as it is aimed at young people with proper purchasing power.

However, local peers focusing on minors are likely to be “severely affected,” said Jeff Zhang, Morningstar Analyst.

There is another factor that can cover the regulatory impact on the POP MART. – said Zhang is increasingly due to foreign sales, especially in Southeast Asia. And the share of his income in China will come up to 30%in the next 10 years, he predicted. Pop -Mart Foreign sales In 2024, in 2021, the total sales of the company had already exceeded.

According to his data, POP MART scored about 61% of his revenue from mainland China in 2024, according to his Annual reportDrawing the rest is mainly from Southeast Asia and East Asia, as well as Hong Kong, Macau and Taiwan.

Last year its sale in North America increased by more than 550%, and in the company 90 Physical shops and trading machine Spots across the United States.

HSBC Bank expects POP Mart’s income overseas in 2025 to more than double -14 billion yuan ($ 1.95 billion) from 2024 for a strong sales boost from “Labubu 3.0” released in April. This year, this figure will be more than half of all predicted income, which is compared to 39% in 2024.

This is simply based on meteorite growth, which the company used last year, when revenue has doubled to 13.04 billion yuan, and the profit is almost three times.

Pop Mart sells toys with blind boxes with prices from 59 yuan to 5999 yuan. Collectors often spend hundreds or thousands of yuan, and rare models can get Six -digit amounts In the second state category of the media on toys with blind boxes resembles Beijing’s rules in video games a few years ago, auctions.

“The meaning in the blind boxes is an unknown, uncertainty. There is a certain curiosity in what someone will receive. It causes a certain degree of excitement when people buy blind boxes,” said Chris Wong, Senior Clinical Psychologist at the Singapore Clinic Resilienz.

“If this uncertainty is resolved,” he said, referring to when a blind box opens, “(It) usually comes with certain pleasant emotions as fun, surprise and admiration. It also plays a role why people just continue to do it.”

Seeing that others share their blind boxes in social media, also enhances such a response from the brain, because it satisfies the need for human social connection, the psychologist said.

Pop -Mart removed a rare apology Last month, after the surge of orders caused the delivery delay, consumers complained online that they did not receive orders within weeks after posting.

Analysts can also mitigate the reputation of pop -Marta in the country and abroad, despite the government’s efforts to control at export points.

Customs in the port Ningbo, one of the most busy ports of the country, confiscated more than a million Fake dolls -Lubu in the first six months of this year, through impaired intellectual property and the concern of smuggling.

To keep your brand fresh, POP Mart took the Disney’s Playbook page, doubled on its IP portfolio, launch pop -up storesa Film studio and the thematic park.

Founder POP MART VAN Nin once hinted on his desire to turn the company into “Chinese Disney”.

But these initiatives are not cheap.

“The production of animation requires a strong storytelling team that can consistently present convincing stories,” said Echo Gong, an independent retail consumption consultant in Shanghai. She added that the management park also requires a completely different set of skills and much greater investment than simple toys sale.

– Evelyn Chen in CNBC contributed to this story.