Pop Mart, the Beijing-based maker of collectible "blind box" toys including the toothy-grinned Labubu, is diversifying its business by opening its first international bakery in Singapore.
The toymaker is turning its best-known characters into three-dimensional edible treats, from black sesame Labubu popsicles to double cheesecake Molly. The two-storey bakery, opposite Universal Studios Singapore, sells 45 toy-inspired pastries and beverages priced from S$5 to S$32 ($3.87 to $24.77).
Singapore is the first stop. "We're also considering opening bakeries in Europe and the United States. It’s a matter of timing and we need to address issues like local supply chains”, Zhang Xiaoyang, head of Pop Bakery at Pop Mart, said in an interview.
The company also plans to open dessert shops across Southeast Asia, including in Thailand, Indonesia and Malaysia, he added.
The Singapore opening follows the debut of Pop Mart's first bakery in the northern Chinese coastal city of Qinhuangdao in April after the company tested the concept through more than 30 dessert truck pop-ups in China.
It also comes at a time when the company navigates higher production costs and analysts have questioned the sustainability of its business model as annual sales and earnings growth missed expectations in recent quarters.
"Pop bakery is a great diversification tool because there's only so much a toy company can do and they've probably hit the ceiling with toy manufacturing”, said Laura Pan, lecturer at SDA Bocconi School of Management.
However, should Pop Mart eventually launch bakeries in the US, it remains to be seen how well they will be received considering the Labubu craze is losing steam, she said.
Following a global wave of demand for its plush toys, bag charms and collectables, Pop Mart has increasingly branched out beyond selling toys and has said it plans to follow in the footsteps of entertainment giant Disney as a way of converting short-term virality into long-term success.
This year, Pop Mart announced it is teaming up with Sony Pictures to develop a Labubu movie and opened an expansion of its Beijing theme park Pop Land.
"We hope to use our IP (intellectual property) to accompany all aspects of consumers' lives and desserts are one of them", Zhang said. The company takes pride in making its characters edible and three-dimensional while other entertainment companies like Disney usually use a flat design or put plastic ornaments on their pastries, he added. — Reuters
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