News of the Industry
Talking strategy: scarcity and omnichannel sales
Pop Mart’s ascent is often attributed to its unique fusion of commerce, community and culture. By turning art toys into “emotional luxury” items, the brand tapped into a powerful generational desire for identity and healing through consumer expression. The blind box model also adds both scarcity and gamification to the experience, creating something of a retail lottery.
“The innovative blind box model can trigger collection and gambling-related instincts,” says Samuel Yan, Director, Client Development and Insights at Circana. “Some of the boxes have a hidden item rate of less than 1%, and this helps to generate feelings of both randomness and scarcity, which encourage repeat purchases.”
Pop Mart’s retail innovation stands out in both physical and digital realms. Physically, the company’s Roboshops have enabled low-cost, rapid deployment into new markets, often as a precursor to flagship stores. The placement of these machines also adds a level of spontaneity to shopping, making the brand present in potentially unexpected areas of urban life.
Digitally, Pop Mart is no less sophisticated. The company has utilized China’s social media platforms—in particular Xiaohongshu, Weibo and Douyin—for hype generation, unboxings and fan culture.
Unlike traditional toy companies that rely heavily on either licensed characters or functional play value, Pop Mart operates more like a lifestyle ecosystem. Its business model includes vertical IP integration, community building and a multi-format retail footprint. This allows it to nurture brand affinity in a way more akin to Apple than Hasbro.
But it wasn’t just the element of surprise that set Pop Mart apart. The company embraced an omnichannel strategy from the start: flagship stores, mall kiosks and Roboshops across China created high-visibility retail moments, while online launches and fan communities amplified hype. Emotional storytelling was core to the appeal, especially with IPs like LABUBU and SKULLPANDA—characters seen not merely as toys but as extensions of personal identity.
“Pop Mart has been increasingly focusing on the products and types of entertainment that can provide younger generations with psychological and emotional comfort as well as emotional value,” says Jeff Zhang, Equity Analyst at Morningstar. “Many of the toys deliver an impression of both cuteness and mischief/rebellion, which resonates with people all over the world.”
Lisa Zhang adds that “Pop Mart tapped into an underdeveloped niche in China: the intersection of toys, art and self-expression.”
Another of Pop Mart’s key achievements has been balancing mass-market accessibility with the cachet of collectible culture. Most blind boxes are affordably priced between ¥59–99, making them appealing as small indulgences even in tight economic conditions. Meanwhile, limited-edition releases and the low hidden item probabilities preserve scarcity, driving resale value and fan obsession.
This “lipstick effect” strategy—affordable luxuries in uncertain economic times—has paid off. As youth spending power shrinks, emotionally resonant and social media-friendly purchases have remained resilient.
