Can Pop Mart be China’s next Pandora?

Pop Mart, the Chinese character-based entertainment giant, is moving into an arena that’s decidedly more luxe than its usual offerings — jewelry. The brains behind the likes of Labubu, Hirono, and Molly unveiled its debut premium jewelry line under its new accessories venture, Popop, earlier this month. To celebrate the occasion, the brand is hosting two exclusive pop-up shops in Shanghai’s IFC and Shenzhen One Avenue Zhuo Yue Center, both running from January 15 to February 14. Popop’s first collection, coinciding with the Lunar New Year and Valentine’s Day shopping festivals, comprises items crafted from sterling silver (92.5% silver), cubic zirconia, and artificial pearls. Designs feature charms inspired by Pop Mart’s popular toy universe — an advantage for the brand, experts say. “Popop’s upper hand lies in Pop Mart’s brand awareness and extensive fan base in the trendy toy market,” says Ashley Dudarenok, founder of Hong Kong-based consultancy ChoZan. “These resources can be directly leveraged for the promotion of Popop, creating a powerful brand synergy effect.” Jing Daily reached out to Pop Mart for comment. Toying with jewelry It’s not the first time the blind box disruptor has attempted to expand into the jewelry market. Last year, Pop Mart soft-launched its jewelry ambitions via several limited edition drops and pop-ups, alongside a co-branded charm collection in partnership with Hong Kong-based jeweler Chow Sang Sang. The news of Pop Mart’s solo foray into the jewelry market has lit up Chinese social media. But netizens’ responses have been mixed. While some fans are celebrating Pop Mart’s expansion, others are questioning its pricing strategy, particularly the limited-edition sterling silver Skullpanda necklace, which is priced at 2,699 RMB ($368). The pricing misses the mark for Pop Mart’s usual middle-to-low-tier audience, some shoppers argue, noting a disconnect between the brand’s luxury aspirations and its core consumer base. Zhou Qianxiang, a 29-year-old Wuxi-based project manager, is one local that isn’t convinced. “I’m not sure if it’s reasonable,” he says. Zhou has previously purchased Pop Mart’s Labubu and Fat Tiger blind boxes, but says he is “unwilling” to splurge on the higher-end accessories. Perfect timing Pricing concerns aside, it’s prime time for Pop Mart to diversify its product offerings as it eyes global expansion. Pop Mart International Group’s chairman and CEO, Wang Ning, announced that the company expects its overseas business to surpass 50% of total revenue by 2025. In the third quarter of 2024, Pop Mart’s overall revenue grew by 120% to 125%, with Hong Kong, Macau, Taiwan, and international markets surging 440%, driving its stock price to over HK$ 100 billion ($12.7 billion). Southeast Asia led revenue growth, with a 478% increase, accounting for 41% of total earnings, which equals about $87.5 million. Pop Mart operates more than 500 stores worldwide, with over 100 in international markets. In 2024, Wang also revealed plans for new flagship stores in iconic locations such as The Louvre and Times Square, with a vision to become “the world’s Pop Mart” rather than just “China’s Disney.” Moreover, as Chinese consumers shift away from gold, Popop appears well-positioned to capitalize on the evolving market dynamics. Gold prices surged throughout 2024 and are expected to remain elevated in 2025, creating significant headwinds for traditional “gold shop” jewelers. Brands like Chow Tai Fook are bearing the brunt: In the first half of FY2025 (ending September 30), the jeweler reported a 20.4% year-on-year revenue drop to HK$39.41 billion ($5.06 billion) and an even steeper 44.4% profit decline. With rising costs making gold and luxury jewelry less accessible, younger and middle-class consumers are seeking alternatives. Popop’s distinctive IP-driven designs, amplified by celebrity-fueled hype — Blackpink’s Lisa has openly professed her love for Pop Mart collectibles — position the brand as a compelling choice. Dudarenok recalls one Pop Mart shopper told her, “I don’t usually buy silver jewelry much. I tend to buy more gold jewelry. However, I find that the silver jewelry from the Popop brand is very attractive. If they have something suitable, I would consider purchasing it.” The next Pandora? Popop’s capitalization on its beloved global characters gives it an edge, but the brand faces stiff competition in China’s crowded mid-tier jewelry market. Rivals like Swarovski are revamping their image to restore brand heat in China. At the same time, comparisons to Pandora have already emerged online, casting doubt on Popop’s ambitions to establish itself as a more premium player. However, Pandora’s recent struggles may play in Popop’s favor. The former saw sales in China drop by 33% in Q3 2024, the steepest decline among all regions as local consumers abandon the retailer. With Pandora’s underperformance leaving a gap in the market, Popop has a chance to step in. To cultivate desirability while preserving exclusivity, Popop is leaning into strategies Pop Mart knows best: harnessing its IP and strategic scarcity. “This time, it’s location and time-limited,” says Dudarenok. Currently, Popop’s jewelry is only available through pop-up stores in Shanghai and Shenzhen, with no other purchase channels announced once the event concludes — a move that significantly boosts appeal. Cultural trends in China are also amplifying Popop’s allure, particularly the rising appeal of nostalgic IP. “Pop Mart has cultivated a diverse portfolio of over 40 original IPs, with significant revenue driven by fan-favorite characters like Molly and Skullpanda,” Dudarenok says. “By aligning its product offerings with these themes of nostalgia, Pop Mart can enhance its appeal in both domestic and international markets.”

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Can Pop Mart be China’s next Pandora?