Pop Mart Hits New Highs: Is Labubu the Next Global Super IP After Hello Kitty?

Pop Mart’s (09992.HK) recent performance has been nothing short of spectacular, with the stock hitting historic highs of HKD 215.8 today, rising more than 140% this year alone. But what’s really catching attention is their iconic character, Labubu, which some are now positioning as the next global super IP—following in the footsteps of the legendary Hello Kitty.

In a recent report by JPMorgan analysts Kevin Yin and Yibo Wu, they highlighted the striking similarities between Labubu and Hello Kitty, not just in character style, but also in commercial strategy. According to their findings, Labubu has already begun to outpace Hello Kitty in global search interest, particularly in regions like Southeast Asia, Mexico, and Spain.

The Rise of Labubu

JPMorgan’s forecast shows Labubu’s parent brand, THE MONSTERS series, could see its sales skyrocket from 3 billion RMB in 2024 to 14 billion RMB by 2027. The data from Google Trends paints a compelling picture: Labubu’s search popularity has surged exponentially over the past year, surpassing Hello Kitty in May 2025. This kind of organic growth in search interest is a significant indicator of consumer attention, which can lead to bigger revenue streams in the future.

What makes this more interesting is the age-old battle of IP designs. Hello Kitty, with its simple and universally appealing design, has captured hearts worldwide. Its cute, soft-edged features have made it a staple for emotional connection among fans. Labubu, on the other hand, boasts a more cheeky and playful design—big eyes, pointy teeth, and fluffy tails—appealing to a more niche, individuality-driven consumer base.

The underlying question is: Can Labubu carve out its own global market share and eventually match or surpass the behemoth that is Hello Kitty?

Innovation and Smart Marketing

The appeal of Labubu lies not just in its design but in the way it’s marketed and distributed. Unlike Hello Kitty, which primarily relies on licensing deals for its expansion, Pop Mart has taken a more hands-on approach with Labubu. By leveraging the blind box model (selling mystery toys), the brand has created a massive sense of excitement and exclusivity, driving consumer curiosity and engagement. This model also allows for controlled supply and demand, making each product release a potential collector’s item.

Moreover, the physical and digital marketing strategies have been equally impressive. Labubu’s “Life-size” mascot tours in collaboration with the Thai Tourism Authority last year turned heads on social media. Celebrities sporting Labubu plush toys and engaging in marketing stunts helped create a buzz that transcended traditional toy marketing.

Pop Mart has also expanded Labubu’s footprint through physical retail presence, opening flagship stores in key international markets like Thailand. This kind of integration across both online and offline channels has been pivotal in building brand loyalty and awareness.

The Commercial Journey Ahead

Labubu’s sales growth trajectory is undeniable. Since its debut in 2019, the character has already accumulated 3 billion RMB in sales by 2024. By comparison, Hello Kitty took several years to reach those kinds of numbers, showing Labubu's potential to achieve even faster growth in its early years.

JPMorgan analysts predict that Labubu’s revenue contribution from the THE MONSTERS series could make up 27% of Pop Mart’s total revenue by 2027. Other characters, like Molly and Crybaby, are also expected to contribute significantly to future revenue growth.

Interestingly, the report also delves into future growth engines beyond traditional toy categories. While the blind box dolls will remain a dominant revenue driver, products like plush toys, MEGA figures, and even AI-enabled toys are expected to emerge as key contributors to the overall revenue growth. While Pop Mart hasn’t made a formal announcement on AI toys, analysts suggest this could be a game-changer in the evolving toy industry, offering consumers interactive and personalized experiences.

What Does This Mean for the Market?

For investors, the rise of Labubu and its potential to join the ranks of iconic IPs like Hello Kitty offers an exciting opportunity. The combination of strong brand recognition, innovative marketing, and expansion into new categories (like AI-powered toys) suggests Pop Mart could be on the cusp of becoming a global player in the collectibles and toys sector.

However, the journey ahead won’t be without challenges. The toy market is fiercely competitive, with numerous players vying for attention in an ever-changing consumer landscape. But the early success of Labubu, coupled with its rapid global expansion and consumer demand, makes it a noteworthy asset to watch in the coming years.

As always, it’s crucial for investors to consider not just the potential rewards, but also the risks involved in betting on high-growth, early-stage brands. But for now, Labubu’s future looks bright, and its status as a potential “super IP” is looking more and more likely.