Why does Duan Yongping find Pop Mart so interesting?

Recently, Pop Mart's stock price has been adjusting, and some friends who were originally full of confidence now look a bit downcast, talking about 'turning off the lights and eating noodles' when we meet.

I quite like Pop Mart as a company, but personally, I feel its certainty isn't as strong as Pinduoduo's, and I don't dare to go all in. Currently, I have no plans to buy.

However, Duan Yongping's attitude is quite interesting. As everyone knows, he is very sparing with his words when commenting on companies, but he has publicly stated that he thinks 'Pop Mart's products are quite interesting.' He has also reviewed some materials about Wang Ning and feels that 'the founder (Wang Ning) is also a very interesting person.'

Although he can't predict what the company will be like in 10 years, so he has no plans to invest, this recognition carries significant weight.

I recall a fan once asked Duan Yongping what he thought of Li Auto, feeling that Li Auto's corporate culture had a strong Apple-like vibe. Duan Yongping replied lightly, 'The business model is far behind,' not mincing words, hitting the nail on the head. Today, everyone knows Li Auto's situation.

So, why does Duan Yongping find Pop Mart interesting? I'll boldly try to analyze it, for reference only.

First, there's resonance in the business model. Duan Yongping comes from a gaming background. His heavy investment in NetEase back then was based on a deep understanding of the gaming industry. He actually knows the entertainment industry very well. Products like Labubu, which have extremely high 'emotional value,' transcend functional attributes and cater to spiritual consumption. In this regard, trendy toys are somewhat similar to games—they are both 'fun' businesses with high margins, strong stickiness, extensibility, and even addictive qualities.

Second, there's the 'super platform' attribute that Duan Yongping loves. Just as the world focuses on iPhone sales while Duan Yongping values iCloud's active accounts the most, he places great emphasis on ecosystems. Pop Mart also has strong platform potential, positioning itself as a 'global artist platform.' With global expansion, if it can truly build an ecosystem of developers (artists) similar to Apple's in the future, Pop Mart will completely transcend the 'retail' category and become truly limitless.

Of course, business models are about the future. Duan Yongping says he can't predict 10 years ahead, so the above is just speculation. But corporate culture is about the present; it's visible.

Specifically regarding Pop Mart's corporate culture, judging by the results, this small grocery store that rose from the underground passage of Zhongguancun's Europlaza has come this far, aligning perfectly with Duan Yongping's 'brilliant moves are the basics' business philosophy.

Reading Wang Ning's 'Because It's Unique,' between the lines, you'll find that even if Wang Ning doesn't necessarily follow Duan Yongping's work, their philosophies are very much aligned.

Here, I'll list and summarize some examples from the book:

1. About the 'Not-To-Do List': Wang Ning once reviewed and halted a 'successful' member recall campaign. To recall 40,000 people, they sent spam messages to 1 million. He believed 'the damage to the brand outweighed the returns, so don't do it again.' This is exactly what Duan Yongping has always emphasized—'don't do the wrong things.' In the face of short-term KPI temptations, being able to restrain impulses and protect long-term brand assets—this is 'ordinary heart,' thinking rationally for the long term.

2. About 'Doing the Right Thing': Wang Ning emphasizes that the first principle of decision-making is 'consider whether you're doing the right thing,' 'do the right thing.' This phrase is all too familiar.

3. About 'People' Screening: 'Those who share the same goals are brothers; those who don't are tools.' Duan Yongping values 'shared goals' when selecting people, and Wang Ning has the same style.

This overlaps almost entirely with the interview content I shared yesterday between Duan Yongping and Wang Shi.

Combining the above two points, this is where I think Duan Yongping might find Pop Mart interesting.

But 'interesting' ≠ 'investment.' Duan Yongping also admits he can't predict Pop Mart's future 10 years from now. While he sees certainty in 'people,' the certainty of 'things' remains unclear.

This point still needs special mention.

$POP MART(09992.HK)