A Pop Mart store in Westfield Century City, Louisiana, is capitalizing on the collectibles trend.
From a struggling Beijing general store to ambitions of having more than 200 stores in the United States, PopMart has come a long way over the past 14 years, becoming the latest Chinese retailer to target American consumers.
Riding the collectibles boom, PopMart has partnered with global brands but, most notably, created its own characters, using local artists to reflect its locations, as well as using mystery boxes (which the company calls blind boxes) that contain mysterious collectibles.
The company, the latest in a flood of Chinese global retailers to enter the U.S. market, from fast-fashion disruptor Shein to Amazon rival Alibaba and discount general merchandise retailer Temu, recently announced full-year 2023 sales of $871 million and net profit of $165 million.
The company has more than 450 stores and 2,300 “Roboshops” (retail vending machines) around the world, and in September it opened a theme park called Popland in Shanghai, plans to enter the mobile gaming industry, announced plans for a new animation studio, and opened the Innerflow Gallery, a contemporary art venue for young people in Beijing’s 798 Art District.
The company currently operates in 30 countries, including the U.S., and EVP of real estate Luis Barrientos said it plans to add 10 more stores in North America by 2024, on top of its current eight, with an initial goal of 200 stores.
The company was founded in Beijing in 2010 by then-university student Wang Ning as a general goods store. After facing financial difficulties, Wang’s business received investment from angel investor Mai Gang and decided to pivot from general goods to designer toys in 2015 after checking social media to see what collectibles young people were buying.
Pop Mart Collectables
Wang first acquired exclusive rights to “Molly,” a big-eyed girl with distinctive corners of the mouth designed and created by Hong Kong artist Kenny Wong. This became the model for product development, and PopMart has collaborated with artists and designers across Asia, and now the United States, to create original IP collections, including best-selling 2023 characters “Skull Panda” (sales of $141.1 million), “Molly” ($141.1 million) and “Dimu” ($102.1 million).
In December of last year, PopMart released its first IP for the US market, the Peach Riot Rise Up Series, to coincide with the opening of its Century City store in Los Angeles. The company announced that it had sold more than 14,000 units within 30 days of the release.
A Pop Mart store at Westfield Valley Square Mall in Santa Clara, California.
PopMart has opened eight stores in California, New Jersey, Washington and last month in Las Vegas, Nevada, as well as 15 “Roboshops,” its own take on vending machines.
The brand will open its first permanent store at American Dream Megamall in September 2022, followed by stores in Century City in Los Angeles, Glendale Galleria in Glendale, Westfield Valley Square Mall in Santa Clara, South Coast Plaza in Costa Mesa, California, Bellevue Square in Bellevue, Washington, and Fashion Show, Nevada. The brand plans to open 10 additional stores in the U.S. in 2024.
“We aim for the international market to account for 50 percent of our total sales, and we’re already at 20 to 30 percent,” said Larry Lu, president of PopMart’s North American division. “Last year, international sales increased 100 percent. As a leader in pop culture, the U.S. is a very important market for us.”
Pop Mart US Stores
Lu attributes much of the company’s success to its focus on high-quality products with attention to detail and making the in-store environment and even the vending machines “fun and enjoyable.”
“We want to make the shopping process dramatic and enjoyable for people, which is why our robot store is very different from ordinary vending machines, and you often see people taking videos while shopping,” he added.
PopMart’s vending machines are called RoboShop.
PopMart uses its vending units to test mall locations, quickly expand its brand presence, or when it needs to await retail space in a shopping center. Its stores around the world are typically 1,000-2,000 square feet, with a few larger flagship stores ranging from 3,000-5,000 square feet.
PopMart initially exported designs from Asia, but is now actively working with independent Western artists and brands to expand its global offerings in the U.S., Lu said. He spoke about new categories such as plush toys, adding that the company is diversifying into gaming, animation, theme parks and more to increase consumer engagement across a wider range of channels.
“What we hear all the time is that customers enjoy shopping in our stores because we really strive to delight our customers,” he says. “Customers discover and enjoy our stores, which is why the local aesthetic and working with local artists is so important to us as we look to expand. We’re very ambitious about how we grow in the U.S.”
