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An early Pop Mart investor said Chinese companies that want to succeed internationally must target the US early on.
David He, a founding partner of Black Ant Capital, a Chinese venture capital company that invests in the consumer sector, spoke with CNBC on the sidelines of the Milken Asia Summit in Singapore.
“For brands in the mid- to high-end segment, especially those looking to expand overseas, they need to set their sights on the US market early on and go all in,” he said to CNBC.
“The US remains the most important market with the greatest spending power and cultural influence,” he added.
Pop Mart, a Chinese toy manufacturer behind the viral doll Labubu, expanded to the US in 2023, opening its first brick-and-mortar store in New Jersey’s American Dream mall.
According to its half-year financial report, the company had 41 stores as of June 30. Its stock has risen about 353% in the past year.
He said that Pop Mart had tapped into the trend of younger consumers buying things that make them feel connected and emotionally fulfilled.
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“Pop Mart’s appeal lies in its design and its presence in intimate spaces, on desks or bedside tables, offering a sense of companionship and familiarity that deepens over time,” he said to CNBC. He sits on Pop Mart’s board of directors.
Several large Chinese companies have expanded to the US in recent years, hailing from diverse industries, from F&B and fast fashion to automobiles. With a playbook of aggressive marketing, cheap goods, and random promotions, these companies have seen success in their US operations.
For instance, Starbucks’ biggest rival in China, budget coffee chain Luckin Coffee, opened two new outlets in New York City in June.
Budget online marketplace Temu captured both Gen Z and boomers in the US with its cheap and varied product selection. Shein, a Singapore-headquartered Chinese fast-fashion retailer, considers the US its largest market.
Representatives for Black Ant Capital did not respond to a request for comment from Business Insider.
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