$MNSO(09896.HK)$POP MART(09992.HK)

Investment Notes: Reading "Because It's Unique" and Reviewing the Core Business Models and Investment Logic of Pop Mart and MINISO

Recently finished reading Wang Ning's book "Because It's Unique". Combined with my own practical experience holding MINISO, I'd like to use the book's perspectives to compare and deconstruct the business models of Pop Mart and MINISO, while also sharing my current thoughts on value investing.

I. Pop Mart: Analogy to Sony/Universal Music Group, Building Barriers with Dual Hard and Soft Moats

I liken Pop Mart to top entertainment groups like Sony and Universal in the market, as its core business model logic highly aligns with that of major entertainment companies:

1. The logic of content IP incubation is identical to the star-making model.

The company incubates original IPs internally while also scouting and incorporating high-quality, emerging external IPs into its ecosystem, exactly like how entertainment companies nurture artists and sign new stars.

2. The global growth path of IPs aligns with the book's viewpoint.

Wang Ning mentions in the book: Every country and region can give rise to local top-tier IPs (corresponding to national singers like Jay Chou and Jacky Cheung), and can also create top-tier IPs that sweep the globe (corresponding to international superstars like Taylor Swift, Rihanna, Maroon 5, etc.).

3. Visible Hard Moat: Full Control of the IP Industry Chain

Pop Mart continuously launches new products, switches design styles to break into new circles, and engages in cross-border collaborations to broaden its audience. It firmly holds the complete intellectual property rights of all its IPs, building a visible hard barrier in the industry.

4. Invisible Soft Moat: Long-term Accumulated Organizational Capabilities

The invisible core competitiveness comes from years of accumulated operational experience, efficient organizational coordination, control over full-chain details, and mature supply chain management capabilities. These capabilities cannot be replicated in the short term and require long-term cultivation, which is precisely Wang Ning's area of expertise.

Simultaneously, Wang Ning's management style perfectly suits Pop Mart's development pace: calm personality, extremely patient in execution, holding absolute strategic authority within the group, yet fully delegating operational power to the team in daily management. This gives each original IP ample room for trial and error and growth, and he precisely intervenes to help IPs break through growth ceilings during their bottleneck periods.