Pop Mart proves how valuable emotional value is.

Author: Chen Bai Source: Economic Observer

No one expected that Wang Ning and the Bubble Mart (09992.HK) he founded would achieve such results today.

After Qin Yinglin surpassed Muyuan Food in wealth with a net worth of 20.3 billion USD on June 8, becoming the "new richest person in Henan", Wang Ning's wealth ranking further climbed on June 9.

According to the latest data from the Forbes Real-Time Billionaires List on the morning of June 9, Wang Ning currently has a net worth of $20.8 billion, ranking tenth in China and 101st globally. Since the beginning of this year, the stock price of Pop Mart has increased by 174%. From the beginning of 2024 to now, Pop Mart's stock price has risen more than 11 times.

When the super popular product LABUBU from Pop Mart has become hard to come by among young people worldwide, some older individuals may have just heard of the name LABUBU.

The public may have vastly underestimated the influence of pop culture. Previously, Wang Ning jokingly remarked in an interview, "A colleague joked that my popularity in Thailand now is like how Steve Jobs was in China back in the day." Now, this toy has not only created a new consumer myth in China and Southeast Asia, but it has also become a hard currency for consumers in North America. Due to various celebrities being spotted with this doll hanging from their bags during street photography, Pop Mart has reached sales of 6 to 7 million dollars on TikTok, becoming the top seller in the U.S. region in April, and even the official Pop Mart APP has topped the shopping chart in the U.S. Apple Store. A live broadcast in the APP can attract up to 120,000 people online simultaneously to grab goods.

What LABUBU is might not be that important. The real important question is, what kind of business mechanism is at work behind these toys that attract young people.

When a blind box priced at dozens of yuan can lead to repeated purchases and even trigger a buying frenzy; when a plastic figurine can become a symbol of identity on social platforms; when an IP image can evoke emotional resonance among fans and create a loyal community, what exactly are today's young people consuming?

The trend has become very clear - emotional value is becoming a truly hardcore consumption. Growing up in a relatively affluent material era, Generation Z's functional demand for products has become saturated, and they have turned to pay more attention to the meaning behind brands, aesthetic experiences, and whether they align with their self-identity. This generation no longer simply pays for "function."

Pop Mart seized such an opportunity. The company's true moat lies in its deep exploration of IP value and emotional binding. It creates a sense of anticipation brought by uncertainty through the blind box mechanism, reinforces the desire for possession brought by scarcity through limited editions and hidden designs, and through IP personalization and the demonstration effect of community opinion leaders, toys have long transcended their physical attributes. Every step has been meticulously designed, ultimately converging into a powerful consumer driving force.

Some netizens even joked: if your Hermès bag doesn't have a LABUBU, it's almost equivalent to not owning an Hermès. Jokes aside, this also points to the true business logic of Pop Mart - just like all luxury goods we are familiar with, it is bringing irreplaceable emotional value to young people.

Some say that Pop Mart is becoming the Disney of the East. Indeed, this company does not simply sell products, but has gradually expanded from the original blind boxes to various categories such as figurines, building blocks, plush toys, and clothing accessories. Now it has also ventured into cultural content areas such as film and animation, as well as theme parks. What Pop Mart is doing is creating a complete emotional economy ecosystem centered around IP. In this era of information explosion and excess choices, whoever can better meet people's emotional needs will win the market. Emotional value is no longer an optional extra, but the core competitiveness that determines the success or failure of a brand.

Of course, the controversy surrounding Pop Mart has never ceased over the years. Some criticize it for "harvesting the emotional tax of young people," believing its products lack actual value; others question whether its business model is sustainable, worrying that there may be growth bottlenecks in the future. After all, an IP has a lifecycle, and there are too many uncontrollable factors behind whether it can continue to thrive.

But it is precisely amidst the skepticism that trendy toys have ultimately transformed from a niche hobby into a new landscape of mass consumption. This just illustrates that we may be at a turning point in a new era of consumption. As a new generation of young people becomes the main force of consumption, the ability to truly understand the needs of this generation will be the source of vitality for enterprises in the future.