Original Content | Pop Mart's investment value lies in IP licensing and user base expansion

This article was first published on the AceCamp official website on January 26, 2026, offering fresh information a step ahead!

Summary

1) The author expects Pop Mart to engage in more IP licensing collaborations in the tech and digital fields this year, not only enhancing its global brand power but also boosting profits.
2) Pop Mart's user demographics in terms of age and gender are expanding, with broader user profiles and consumption scenarios. New categories such as trading cards, building blocks, and BJDs will continue to drive user growth.

Pop Mart has started external IP licensing (licensing-out), expanding into the tech and digital sectors. $POP MART (09992.HK)$ $MINISO (MNSO.US)$

Labubu collaborates with Huawei HonorFollowing last year’s Labubu collaboration with GODIVA, the premium chocolate brand, Pop Mart has joined forces with Huawei Honor to launch the 'Honor 500 Pro MOLLY 20th Anniversary Limited Edition' smartphone (Chart 1). On January 25, 2026, the phone will officially go on sale via Honor Mall, Honor Experience Stores, and authorized retail outlets, priced at 4,499 yuan, or 3,999 yuan after national subsidies. This flagship smartphone leverages the 20th anniversary of MOLLY to offer full-chain customization from exterior design to system experience, including exclusive themes, wallpapers, camera watermarks, and charging animations, integrating youth-oriented trendy culture into tech products, which is expected to continuously exert influence in cross-sector markets.

The first day of sales triggered a buying frenzy.According to media reports, there were 120,000 pre-sale orders on the first day, with 32% of buyers purchasing Honor products for the first time, showing significant customer acquisition.

The allure of licensing-out.The author believes that 1) Pop Mart’s powerful IP influence is being exported successfully, breaking through traditional boundaries to expand into the tech and digital sectors. Last year’s GODIVA chocolate collaboration was a trial, while this time it deeply engaged in the R&D and production process of the Honor smartphone. 2) This marks Pop Mart’s first IP licensing deal for a tech product. Using Sanrio’s royalty rate of 4-6%, it’s estimated that Pop Mart could earn at least single-digit revenue sharing. For each Honor smartphone sold, Pop Mart could record over 200 yuan in revenue.The revenue share per smartphone is equivalent to selling one MOLLY MEGA SPACE 100% figurine, but with negligible costs, effectively adding directly to net profit—this is the allure of licensing-out.

Chart 1: The custom gift box of the Honor 500 Limited Edition includes the main unit, a MOLLY phone case, lanyards, and other peripherals, presenting an extremely FANCY visual effect.

Source: Company

We look forward to Pop Mart expanding more IP licensing collaborations in the consumer electronics sector this year to enhance brand strength.

We anticipate a collaboration between Labubu and Apple smartphones.At the interim earnings conference held in August last year, Wang Ning expressed that future Labubu products would be applicable in more diversified scenarios. On October 13 last year, Apple CEO Tim Cook’s first stop during his visit to China was attending the 10th anniversary tour exhibition of Pop Mart’s THE MONSTERS. Cook viewed original sketches and a wide range of products from the LABUBU series, and engaged in deep interaction with Wang Ning and Long Jiasheng.

The author believes that if Labubu collaborates with Apple on an IP co-branded project, it will gain Apple's endorsement, helping Labubu further strengthen its brand presence and expand its consumer base in overseas markets.

From organic promotion to proactive initiatives, including partnerships with top international brands.In the past, Pop Mart’s consumer outreach relied on the organic traffic of well-known artists. Now, Pop Mart aims to boost brand visibility by partnering with more prestigious brands with high user overlap. In December last year, Pop Mart invited Wu Yue, President of LVMH Greater China, to join its board of directors. The author expects potential collaborations such as Dimoo with Chopard watches, Little Star Men with Samsung smartphones, and Labubu with LVMH brands, to materialize by 2026. These global leading brands’ customer networks will help promote Pop Mart’s IP recognition and use their distribution channels to sell these co-branded products.

Expansion in user age groups and gender diversity, broadening user profiles and consumption scenarios.

Labubu drives new customer acquisition and boosts related sales.Labubu's vinyl plush products have seen booming sales over the past two years, driving the expansion of new user demographics. Among these, 50% of new customers made repeat purchases, which also increased exposure for other IP-related products.

Broadened user demographics.According to channel research, Labubu’s user base has expanded from traditionally being women white-collar workers aged 20 to 30 to now include people aged between 15 and 40. Pop Mart's collaborations with consumer electronics like smartphones, as well as its vinyl plush series, will attract male users, and the proportion of male consumers is expected to increase.

New pathways for exporting pop culture overseas.The Honor 500 series was simultaneously launched in Southeast Asia and Europe. Honor smartphones have a certain market share in overseas markets like Europe, and both Honor and Pop Mart can mutually benefit in these international markets.

Expanded user consumption scenarios.Consumers' purchasing scenarios have broadened, evolving from originally buying as collectible toys or figurines for hobbyists to increasingly using them as trendy accessories such as keychains, phone cases, or cup merchandise. This trend directly drove the sales contribution of peripheral products from around 3% previously to an estimated 11% by the end of 2025.

Chart 2: SKULLPANDA Art Collectible Card Blind Box

Source: Company

Trading cards (Chart 2), building blocks, and BJD new product categories continue to drive user expansion.

Pop Mart'sblock category may drive growth through collaborations with brands like Bandai, Hasbro, and Lego. This form of collaboration aims to compensate for Pop Mart designers' limited expertise in structurally complex block designs while cultivating the male player market. The author believes that partnerships with Gundam, Bandai, Hasbro, and Lego can further expand Pop Mart's influence.

BJD dress-up dolls have the potential to become the next major trendy toy category, with a deeper audience base. Mattel's (MAT.O) Barbie is a representative example of BJD. According to research, IP products featuring characters like Zsiga, Xiao Ye, MOLLY, and KIA are well-suited for BJD adaptations. SKULLPANDA’s limited-edition MEGA BJD product launched on Valentine's Day 2025 received excellent customer feedback at the time.

BJD products have expanded from desktop displays to include dress-up functions and applications such as bag charms.Last year, Zsiga's BJD products contributed one-third of the IP’s sales revenue. It is expected that the release of MOLLY Crazy Animal City BJD and the China Intangible Cultural Heritage Series BJD this year will further enrich the category's lineup.

Pop Mart's investment value lies in its ability to expand its user base.

The author forecasts that Pop Mart’s sales revenue will grow by 40% year-over-year in 2026,driven by the rapid growth of mid-tier IPs like Astro Boy and CRYBABAY, along with accelerated expansion in overseas markets following organizational adjustments. The high growth in revenue and profits deserves a higher PE valuation.

The author is optimistic about Pop Mart's strong IP cultivation capabilities, category innovation capabilities, and global operational capabilities.With the expansion of product categories, the incubation of new IPs, the extension of lifecycle, and the deepening of global strategies, Pop Mart is building a more stable and diversified growth system. The author believes that Pop Mart’s investment value lies in its ability to expand its user base, driving the company to maintain high growth in the coming years, and becoming a globally leading trend culture brand.

The near-term catalysts are the guidance provided during the company’s March earnings call, as well as sales of new products in Q1 and secondary market pricing.

Risk Warning: The above content represents personal opinions only and does not constitute any investment advice. Please bear the risks on your own.

40K Views