Pop Mart's shares get a beating as People's Daily weighs in to rail against ‘blind boxes'

South China Morning Post

20-06-2025

The world's most valuable toymaker is losing some of its appeal after the mouthpiece newspaper of the Communist Party of China poured cold water on its business model and warned against the addictiveness of its wildly popular collectibles.
Pop Mart International Group 's shares plunged as much as 6.6 per cent on Friday in Hong Kong after the People's Daily newspaper ran a commentary that railed against the 'wilful consumerism' of so-called blind boxes. The stock has fallen 11 per cent in two days, wiping out HK$36 billion (US$4.58 billion) in market value.
The mainstay of Pop Mart's business model is its blind boxes and blind cards, which hide their contents with sealed packaging. That drives collectors into frequent and repeat purchases to get their hands on the rarest and most desired toys or cards, where the chance of finding rare editions has been calculated at less than 2 per cent.
These products are 'business traps' designed to use unpredictable rewards to encourage repeat purchases, the People's Daily said, citing legal experts and academics. Minors are especially susceptible given their still-developing self-control and psychological maturity, the newspaper warned, calling for stronger regulations to protect them against these tactics.
A girl looked at 'blind boxes' - where their contents are hidden by sealed packaging - at a Pop Mart store in Beijing on June 3 2021. Photo: EPA-EFE
With a circulation of 3 million, the People's Daily's editorial stance reflects the thinking of China's policymakers. Chinese authorities issued a directive in 2023 banning the sale of blind boxes to children under eight years old to curb their addiction.