Chinese designer toy brand Pop Mart has achieved explosive growth in overseas markets, overcoming high tariffs from the US.

Taiwan • Business • 05/04 07:02
Chinese designer toy brand Pop Mart has achieved explosive growth in overseas markets, overcoming high tariffs from the US.

Against the backdrop of the United States imposing tariffs as high as 145% on Chinese goods, the Chinese trendy toy brand Pop Mart has defied the trend by experiencing growth, with its overseas market revenue increasing by nearly 480% in the first quarter and a 900% increase in the American market. Even though the price in the U.S. rose from $22 to $28, consumers are still eager to buy. Some U.S. retailers, like Walmart, have opted to absorb the tariff costs to maintain supply chain stability. This phenomenon highlights the bargaining power and resilience of China's cultural and creative industries in the global market.

Key Updates

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05/04 07:02

Chinese designer toy brand Pop Mart has achieved explosive growth in overseas markets, overcoming high tariffs from the US.

Against the backdrop of the United States imposing tariffs as high as 145% on Chinese goods, the Chinese trendy toy brand Pop Mart has defied the trend by experiencing growth, with its overseas market revenue increasing by nearly 480% in the first quarter and a 900% increase in the American market. Even though the price in the U.S. rose from $22 to $28, consumers are still eager to buy. Some U.S. retailers, like Walmart, have opted to absorb the tariff costs to maintain supply chain stability. This phenomenon highlights the bargaining power and resilience of China's cultural and creative industries in the global market.

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Brand Power and Consumer Loyalty as Key Support

The success of Pop Mart is not accidental. Its core competitiveness stems from the youthful aesthetic shaped by the brand, IP character design, and the "blind box" shopping experience, which resonate strongly with young consumers worldwide. According to company-disclosed data, Pop Mart's overseas market revenue grew by nearly 480% in the first quarter of 2025, with the Americas market increasing by 900%, and Europe and the Asia-Pacific regions recording growths of 600% and 350%, respectively.

Even in the face of high tariff pressures in the U.S. market, Pop Mart's products still possess a significant ability to command a premium price. Its blind box products have seen prices rise from $22 to $28 in the U.S., yet they continue to attract large numbers of consumers lining up to purchase. On May 2, an overseas blogger shared a store visit video on social media, describing the scene as "wild," indicating that the brand's popularity in overseas markets remains undiminished.

U.S. Retailers Choose to "Absorb" Tariffs to Maintain Supply Chain Stability

Faced with import tariffs as high as 145%, U.S. domestic retailers like Walmart and Target have chosen to absorb some of the tariff costs. Industry insiders point out that these companies' actions are based on three considerations: ensuring supply chain stability to avoid brand reputation damage due to temporary stockouts; maintaining product price competitiveness by absorbing costs through economies of scale; and maintaining long-term relationships with quality suppliers to avoid the uncertainties and time costs associated with redeveloping supply chains.

This market self-adaptive strategy reflects the irreplaceability of Chinese trendy toy brands in the global supply chain. Li Bin, an associate researcher at the Henan Academy of Social Sciences' Economic Research Institute, pointed out that companies like Pop Mart possess strong pricing power and supply chain diversification strategies, showcasing the resilience and flexibility of Chinese companies in the global market.

China's Toy Industry "Breaking Through Headwinds" Under High Tariffs

According to a report by Beijing Youth Daily, Pop Mart is not an isolated case. The overall Chinese toy industry has demonstrated strong resilience in the face of this trade impact. China holds unparalleled advantages in the small commodity industry chain, represented by toys and stationery, including cost-effectiveness, rapid response capabilities, and flexible production relocation strategies.

After the U.S. canceled the tax exemption policy for small parcels from China, many Chinese e-commerce platforms like Temu and Shein were impacted, with some platforms even restricting U.S. users from browsing products from China. However, Pop Mart's physical and online sales channels remain active, with no significant stockouts or sales declines observed.

Production Transfer and Supply Chain Diversification Strategies

In the face of tariff pressures, companies like Pop Mart have not solely relied on domestic production in China but have instead lessened reliance on a single market through global production transfers and supply chain diversification strategies. This strategy not only helps to disperse risks but also enhances the company's ability to respond flexibly in the global market.

Li Bin noted that these companies have developed highly mature capabilities in supply chain management, enabling them to quickly adjust production and logistics layouts based on policy changes in different markets, which is one of the key factors allowing them to continue expanding in a high-tariff environment.

Actual Sales Situation and Consumer Response in the U.S. Market

Despite price increases, American consumers' enthusiasm for Pop Mart products remains undiminished. According to reports, Pop Mart's trendy toy application recently topped the shopping category in the Apple U.S. App Store, indicating its increasing penetration and brand appeal in digital channels.

Additionally, some American consumers have even chosen to fly to China for shopping, demonstrating a high preference and loyalty to Chinese trendy toy products. This consumer behavior further proves that brands like Pop Mart have successfully established cross-border brand loyalty and cultural influence.

References

People Also Ask...

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How can Pop Mart keep such strong consumer loyalty despite the high tariffs in the U.S.?

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Pop Mart is doing so well in the U.S. that they're not worried about tariff hikes. How did they pull this off?

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Despite high tariffs in the United States, Pop Mart is still able to achieve growth against the odds. What lessons can other Chinese brands learn from this?