Pop Mart opens first international bakery in Singapore

Beijing-based collectible toy maker Pop Mart 9992.HK, known for its popular "blind box" figures including the toothy-grinned Labubu, is expanding its business by opening its first international bakery in Singapore.

The company is transforming its best-known characters into edible creations, offering products such as black sesame Labubu popsicles and double cheesecake Molly desserts. The two-story bakery, located opposite Universal Studios Singapore, features 45 toy-inspired pastries and beverages priced from S$5 to S$32 ($3.87 to $24.77).

Singapore marks the first overseas location for Pop Mart's bakery concept. The company is also considering opening branches in Europe and the United States, although expansion will depend on timing and challenges such as local supply chains, Zhang Xiaoyang, head of Pop Bakery at Pop Mart, said in an interview.

Pop Mart also plans to launch dessert shops in other Southeast Asian markets, including Thailand, Indonesia and Malaysia, Zhang added.

The Singapore opening follows the launch of Pop Mart's first bakery in Qinhuangdao, a coastal city in northern China, in April. The company previously tested the concept through more than 30 dessert truck pop-ups across China.

The move comes as Pop Mart faces rising production costs and questions from analysts about the long-term sustainability of its business model after annual sales and earnings growth fell short of expectations in recent quarters.

"Pop Bakery is a great diversification tool because there is only so much a toy company can do, and they have probably reached the ceiling with toy manufacturing," said Laura Pan, a lecturer at SDA Bocconi School of Management.

However, Pan said it remains uncertain how successful Pop Mart's bakeries would be in the United States if the company expands there, especially as interest in the Labubu trend has started to decline.

After benefiting from a global surge in demand for its plush toys, bag charms and collectible figures, Pop Mart has increasingly moved beyond toy sales. The company has said it hopes to follow the path of entertainment giant Disney by turning short-term popularity into long-term brand growth.

Pop Mart announced this year that it is partnering 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. He added that the company takes pride in creating three-dimensional edible versions of its characters, unlike some entertainment companies that often use flat designs or plastic decorations on pastries.

($1 = 1.2918 Singapore dollars)

-Reporting by Daphne Zhang and Casey Hall; Editing by Christopher Cushing/Reuters