{
  "id": 2068572,
  "title": "Can Pop Mart keep the Labubu magic alive? Growth slows sharply as bears gather",
  "url": "https://urgent.news/2026/08/20/can-pop-mart-keep-the-labubu-magic-alive-growth-slows-sharply-as",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-20T03:11:21.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/can-pop-mart-keep-labubu-magic-alive-growth-slows-sharply-bears-gather"
  },
  "original_language": "en",
  "account": "Pop Mart International Group, a company that experienced explosive growth due to social media buzz, is set to report a significant slowdown in first-half sales growth on Thursday (Aug 20). This decline comes after a surge in the firm's market value of approximately US$32 billion following the popularity of its Labubu character. Analysts predict revenue growth of 44% for the six months ended June, down from an impressive 200% increase in the same period last year. The growing number of short bets on Pop Mart's stock suggests that investors are becoming increasingly skeptical of the company's ability to maintain and expand its entertainment franchise built around Labubu. This development highlights a broader issue affecting Chinese brands that gained popularity through social media trends. Many of these companies, like Laopu Gold and Chagee Holdings, struggle to retain consumer interest once the excitement fades, as shoppers become more discerning and economic pressures impact discretionary spending. Olivia Plotnick, founder of Shanghai-based marketing consultancy Wai Social, notes that these brands often attract trend-driven consumers seeking novelty rather than loyalty. With more than 80 stores in the US and plans to exceed 100 by year-end, Pop Mart's expansion in the US is a key growth driver. However, domestic revenue in China, where the company has more than 400 stores, is expected to rise by roughly 45% in the first half. Morningstar analyst Jeff Zhang anticipates double-digit annual domestic growth over the next five years, driven by increasing membership and repeat purchases. Pop Mart is attempting to foster loyalty by turning its characters into broader entertainment franchises, including a Labubu movie in development with Sony Pictures and expanding experiences such as Beijing's Pop Land theme park and the recently launched Pop Bakery in Singapore. Despite these efforts, the company faces challenges in building a portfolio of intellectual properties comparable to Disney or Hello Kitty's Sanrio, which have decades of stories and generational recognition behind their characters. Recent data indicate weakening demand, with online sales in China down 21% year-on-year in July following a 41% decline in June, according to Deutsche Bank research citing third-party data. If this trend continues, the company could face mounting domestic sales pressure. Morgan Stanley analysts, including Dustin Wei, expect management to provide a cautious outlook for the second half of the year, forecasting revenue growth of only 1% in 2026 and 14% in 2027. This outlook is reflected in the stock's performance, as Pop Mart's Hong Kong-listed shares have remained relatively stable since the record sell-off following first-quarter results and now trade at less than half their peak value from a year ago. Going forward, investors will be closely monitoring signs of revenue and earnings re-acceleration, particularly in international markets. Market strategist James Ooi of Tiger Brokers advises that investors should look for evidence of sustained growth beyond the novelty of one blockbuster character.",
  "summary": "Firms that surged on social media buzz are finding it harder to sustain consumer interest",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}