Background: Pop Mart is the Hong Kong listed toy company known for its viral Labubu blind boxes. These collectible furry, jagged-tooth gremlin toys have gained global fame and even caught the attention of celebrities like BlackPink’s Lisa, Rihanna, and Dua Lipa.

What happened: A blind box is basically an adult lucky dip where customers don’t know which toy they’re getting until they open it, which keeps them coming back for more. The strategy is clearly paying off, with Pop Mart’s share price jumping 350% in the past year.

What else: Australia is quickly becoming one of Pop Mart’s most important markets, making up 10% of its Asia Pacific revenueoutside of China. Pop Mart reckons this rapid growth comes down to Australia’s higher purchasing power and enthusiasm for collectible toys.

What's the key learning?

💡Purchasing power is the amount of goods and services a unit of currency can buy. It’s why one Aussie dollar is valued differently to one US dollar or one Chinese Yuan.

💡Although China is Pop Mart’s largest market, the yuan’s lower purchasing power means its blind boxes are viewed as premiumproducts. But in Australia, where the average toy costs around $22, Pop Mart’s pricing of $20–$30 AUD sits comfortably within what shoppers are already used to spending.

💡This pricing advantage has helped Pop Mart expand its customer base in countries, like Australia, where it competes with other regular toys. While Chinese buyers are mostly 15–40 year olds with disposable income, in Australia, the brand also attracts younger kids - thanks to parents who see the cost as comparable to other toy brands.