Company Overview & Business Model

• PopMart: 15-year-old Chinese retailer founded by Wong Ning as variety store
• Transformed into blind box collectibles company
• Stock price rocketed 1200%+ since beginning of 2024
• Revenue more than doubled in past year
• Over 500 stores and 2,000 vending machines worldwide

Blind Box Strategy & Mechanics

• 2019: Over 70% of revenue from mystery boxes
• Blind box pricing: $20-$30 per box
• Collection structure: 6 possible characters + 1 secret (1 in 72 chance)
• Creates psychological drive to complete sets
• Leverages anticipation and surprise elements
• Comparison to gambling behavior noted by experts

Product Lines & Revenue Drivers

• Labu line (Monsters series by Hong Kong artist Kasing Long):
  • Biggest growth driver
  • 726% revenue growth from previous year
  • Launched April with 2,500 people crowd at Century City store before 6:30 AM
• Over 85% of 2024 revenue from exclusive artist-developed products
• Licensed IP includes Disney and Marvel (under 15% of revenue)

Artist Partnerships & IP Development

• First major collaboration: Kenny Wong's Molly character (Zodiac series, 2016)
• CEO surveyed customers for artist preferences
• 2023: Peach Riot series with first US artist Libby Frame
  • Now top IP in average figurine blind box sales in North America
• Strategy: Continue seeking western artists for market expansion

International Expansion

• Overseas sales tripled in 2024
• International revenue: 40% of total sales (up from 17% in 2023)
• US expansion plan: 20+ stores by end of 2025 (nearly doubling current footprint)
• Stores are key strategy for growth beyond China

Market Position & Competition

• Positioned between competitors:
  • Dreams (Japan): Primarily develops IP (Smisy, Sunny Angel)
  • Minio (China): Primarily sells/distributes other companies' IP
• Blind box market already billion-dollar industry in Asia

Consumer Behavior & Spending

• Customer spending examples: $300-$600+ per collector
• Secondary market: Massive markups for popular characters
• Psychological appeal: "experience not product" - anticipation and payoff cycle
• Celebrity endorsements and social media unboxings drive popularity

Regulatory Challenges

• Several Asian countries implementing regulations
• Singapore: Proposed $77 cap on mystery boxes
• China: Banned blind box sales to children under 8
• PopMart targets adult collectors and Gen Z customers specifically

Diversification Strategy

• Shifting from blind box figurines to plush products
• Expanding accessories category (fastest growing segment)
• Future plans:
  • Theme park with mascot character interactions
  • Digital content development
  • Character narrative building

Trade & Economic Concerns

• US-China trade war uncertainty may increase product costs
• Company declined to comment on trade environment
• Focus on longevity and innovation to maintain growth