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Pop Mart rallies in Hong Kong on aggressive push into US retail market

Shares of Labubu toymaker Pop Mart jumped after the Chinese firm unveiled plans to open more than 20 new stores in the US this year

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Interior signage featuring Pop Mart’s logo and collectible characters at a store in San Francisco. Photo: Getty Images
Themis Qi

Pop Mart extended its rally in Hong Kong on Wednesday after unveiling an accelerated push into the US market, underscoring how overseas expansion is helping the Chinese toymaker offset lingering pressures at home.

The maker of Labubu figurines plans to open more than 20 new stores across the United States this year, under a partnership with US mall operator Simon Property Group, which announced the roll-out in mid-January.

The outlets will be located in major shopping centres including King of Prussia in Philadelphia, Sawgrass Mills in Florida and The Westchester in New York, marking a step-change in Pop Mart’s overseas ambitions.

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Shares of Pop Mart climbed as much as 9 per cent to HK$236 in afternoon trading, before ending 7 per cent higher at HK$231.4, extending a rebound fuelled by a HK$350 million (US$45 million) share buy-back last week. The stock has now risen more than 32 per cent from its year-to-date low of about HK$174.

The overseas momentum comes after a turbulent period in mainland China, where Pop Mart faced heightened scrutiny over its blind-box sales model.

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Blind-box sales involve selling sealed products with undisclosed contents, a format that raised regulatory concerns over compulsive spending and gambling-like behaviour, particularly among minors.

Prices of its flagship Labubu series also slumped in the secondary market last year, hit by oversupply and fading hype, dragging the company’s shares lower in the second half.

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