POP MART unveils first store in Malaysia as part of SEA expansion

Character-based entertainment company POP MART has unveiled its first store in Malaysia as part of its Southeast Asian expansion strategy, according to a statement by the brand. 

The store opened in Pavilion Kuala Lumpur shopping mall on Jalan Bukit Bintang and marks the company's two-year presence in the market, following its initial entry into Malaysia through cross border eCommerce two years ago.

This comes shortly after the brand successfully established itself in the Singapore market with a physical POP MART store in 2021. The company then turned to Malaysia considering that the two countries share similar cultures. 

Justin Moon, global president of POP MART said Malaysia has enormous potential as the region’s second-largest market after Singapore, and that the company is looking forward to further developing in other Southeast Asian markets and establishing a comprehensive offline and online sales network while valuing local culture. 

“The opening of the Malaysian store has meant that POP MART’s business expansion in Southeast Asia has entered a new era. Malaysia has huge potential as a major market for us after Singapore. Both countries have a similar social culture and offer a relatively large market of art toys collectors. We can leverage on what we have done in Singapore to build things up in Malaysia, with the possibility of future expansion into other neighboring countries,” Moon added.

The 1,569 square feet POP MART store was designed with colour-changing RGB lights on the doors and visually appealing displays to appeal to Gen Z shoppers. Limited edition items for local fans such as DIMOO Mango Jelly Plus, SKULLPANDA Dark Maid Limited Edition 100%, Labubu Shepherd Limited Edition 100%, and other popular collectibles are also available at the store.

Don't miss: Pop Mart launches co-branded collection with Uniqlo

Fans will also be able to enjoy multiple exclusive perks. Firstly, fans who follow POP MART’s official Instagram and purchase a POP MART Dimoo figure will have the chance to spin the wheel and win prizes. Furthermore, gifts will be available to surprise fans who buy in bulk.  

"POP MART aims to continue expanding its Malaysian market with more offline stores and robo shops in core areas of Malaysia, in addition to its online channels. Since launching its global business in 2018, POP MART has always placed great importance on the Southeast Asian market," said the company.

According to Moon, for many Chinese brands moving into overseas markets, Southeast Asia is one of the most important markets for them. “Southeast Asian countries have rapid economic development, its consumers have strong purchasing power, and the market space is large. At the same time, the culture is relatively diverse, and they are tolerant of foreign cultures and products. A high degree of investment coupled with high investment support for foreign-funded enterprises has helped create a good business environment,” he added.

According to its latest financial report for the year of 2022, the company reported a revenue of RMB4.62 billion for the fiscal year ended December 31, 2022, which increased 2.8% year-on-year (YOY). Its gross profit was RMB2.65 billion, resulted in a 3.8% decrease from the previous year.

The company's core competitiveness remained in terms of intellectual property (IP). According to its 2022 annual report, revenue from proprietary products accounted for 90.8% of total revenue. Its IP SKULLPANDA series generated RMB851.6 million in revenue in the reported period, representing a 43.07% increase YOY.

Although POP MART slowed down the opening of physical stores in China, it experienced a rapid growth in international markets. It currently operates 43 stores, 120 roboshops, and 13 cross-border eCommerce platform sites in Hong Kong, Macau, Taiwan, and overseas as of 2022, with revenue increasing by 147.1% to RMB453.9 million. In addition to its ongoing expansion in the Asian market, POP MART has also opened local offline stores in the United Kingdom, New Zealand, the United States, and Australia.

In March, the company opened its first-ever store in Paris, marking the brand's first permanent location in continental Europe.

MARKETING-INTERACTIVE has reached out to POP MART for more information.

Related articles:
Chinese toymaker Pop Mart heads to London marking Europe expansion plans
Chinese toymaker Pop Mart cops PR flak for asking female job applicants plans on children
MINISO to launch new flagship store in New York as part of global expansion