Lessons from Wang Ning

Wang Ning, the founder and CEO of Chinese toy giant POP MART, has transformed the niche market of art toys into a global phenomenon, making him one of the wealthiest entrepreneurs in China. His success with "blind box" toys like Labubu and Molly has been fueled by a unique business philosophy that blends art, commerce, and a deep understanding of consumer psychology.

On Business Philosophy and Strategy

On the "Uselessness" of Value: "The more useless a thing is, the more valuable it is."
- Learning: Wang Ning's theory of "useless economics" posits that products with purely functional attributes have a limited lifespan. In contrast, items that offer emotional and aesthetic value, like art toys, can transcend time and become more valuable as they are not tied to a specific utility. [1]
The Fountain and the Faucet: "Are we, as a consumer goods company, leading people to the 'faucet' or the 'fountain'?"
- Learning: This analogy distinguishes between functional and emotional value. A running faucet (functional) might cause anxiety about waste, while a decorative fountain (emotional) is appreciated for its beauty, even at a cost. Wang Ning aims for POP MART to be the "fountain," providing aesthetic and emotional fulfillment. [1]
Three Types of Companies: "In my opinion, there are three types of companies: grass, flowers, and trees."
- Learning: Grass-like companies grow and wither quickly. Flower-like companies achieve temporary success but are not sustainable. Wang Ning aspires for POP MART to be a tree-like company, with deep roots that allow for slow, strong, and long-lasting growth. [2]
The "Seven-Tenths Full" Philosophy: "Even with popular products, we must maintain restraint."
- Learning: This "seven-tenths full" approach is about intentionally limiting supply, not as a marketing gimmick, but as a way to gauge the market accurately and avoid overproduction. This creates a sense of scarcity and maintains brand value. [3]
Patience and Long-Term Vision: "We have always adhered to the philosophy of respecting time and respecting operations."
- Learning: Wang Ning emphasizes that POP MART, despite its rapid growth, is a company built on patience. He believes in making "clumsy" but steady decisions for long-term success rather than chasing short-term gains. [2][4]
A Counter-Intuitive Path to Success: "True longevity lies in purposelessness. Functional objects become obsolete; emotional artifacts transcend generations." [5]
- Learning: This encapsulates his core belief that by removing practical function, products become a blank canvas for consumers to project their own identities and emotions, fostering a deeper connection. [5]
The Power of a Slow Approach: "Slow is fast, and less is more. We need to focus on doing one thing slowly." [6]
- Learning: This reflects his strategy of deliberate, focused growth, ensuring a solid foundation before expanding.
Being a "Tree-like" Enterprise: "We want to be a tree-like enterprise, with roots that are deep enough." [2][6]
- Learning: This metaphor highlights the importance of building a strong corporate culture, a robust IP pipeline, and a sustainable business model that can withstand market fluctuations. [2][6]

On Art, Commerce, and IP (Intellectual Property)

The Contradiction of Art and Business: "I've loved two things since I was a child: art and business. These two things are contradictory. Art pursues uniqueness... business is about universality." [6][7]
- Learning: Wang Ning's success lies in finding the delicate balance between the niche appeal of art and the mass appeal required for a successful business. [6][7]
Discovering Artists: "When I went to Kenny Wang's studio... it was like meeting Jay Chou when he was still singing in a bar." [8]
- Learning: He recognized the potential of talented artists in a semi-commercialized state and provided them with a platform to reach a wider audience, much like a record label discovers a future superstar. [8]
The Language of Artists: "Artists need to be spoken to in the language of artists. They are not businessmen... they care more about whether this thing can be made great." [8]
- Learning: Building relationships with artists requires an appreciation for their creative vision and a commitment to elevating their work, not just focusing on monetary returns. [8]
POP MART as a Platform: "We are working with the world's best artists, launching products with the help of Chinese manufacturing, and using the Chinese market to incubate these relatively niche artists, and then expand their sales and influence in the global market." [9]
- Learning: POP MART functions as an incubator and accelerator for artists, leveraging China's robust manufacturing and consumer base to build global IP. [9]
IP Incubation System: "We have a mature system for incubating and operating these IPs... It is not based on my personal preference, but has a relatively objective evaluation standard and resource allocation mechanism." [9]
- Learning: POP MART has systematized the creative process to a degree, using data and market feedback to decide which IPs to develop and how to allocate resources, ensuring a sustainable pipeline of successful characters. [9]
The Vitality of IP is in its Long-Term Value: "The life cycle of an IP has its peaks and troughs." [10]
- Learning: Wang Ning understands that the popularity of an IP can fluctuate. The key is continuous operation and re-investment to keep the IP relevant and alive in the minds of consumers. [2][10]
Beyond a Single Story: "Successful IP does not just rely on stories, but needs to find a unique way to resonate with consumers." [9]
- Learning: He challenges the conventional wisdom that every IP needs a complex backstory or a movie. Sometimes, a strong design and emotional connection are enough, as demonstrated by the success of characters like LinaBell from Disney. [9]
POP MART as a Record Company: "If you compare POP MART to an entertainment company, it is the 'record company' of the art toy world." [3]
- Learning: This analogy explains their business model of discovering, nurturing, and promoting artistic talent (the IPs) and distributing their work (the toys). [3]
Creating a World-Class IP Platform: "We aim to build a world-class platform for trendy toy IPs." [10]
- Learning: The ambition is not just to sell toys, but to create a global ecosystem for the creation and popularization of art toy culture. [10]
The Charm of the Cultural Industry: "The charm of the cultural industry is that it requires strong soft power and cannot be calculated rationally. That is to say, you can't create another Labubu just by spending money." [6][7]
- Learning: Success in the cultural space is not just about financial investment; it requires a deep understanding of culture, aesthetics, and consumer emotion. [6][7]

On Globalization and Brand Building

From a Chinese Disney to a Global POP MART: "We originally hoped to become the Disney of China, but now we hope to become a global POP MART." [4][10]
- Learning: This shift in ambition reflects a move from imitation to creating a unique, globally recognized brand with its own identity and methods. [4][10]
From the World, to the World: "We often say, 'From the world to the world,' meaning that we originate from the world and then go back to the world." [4][10]
- Learning: This philosophy guides their global strategy, which involves collaborating with international artists and then selling the resulting products worldwide. [4][10]
A "Clumsy" Approach to Globalization: "Overall, we are using a very clumsy way to do globalization. All our stores around the world are directly operated." [2]
- Learning: By insisting on directly-operated stores, POP MART maintains full control over the brand experience and can gather direct consumer feedback, which is crucial for a company built on understanding its customers. [2][3]
Location, Location, Location: "Our site selection is either a global commercial landmark or very close to art." [2]
- Learning: The choice of store locations is a key part of the branding strategy, positioning POP MART at the intersection of high commerce and high art. [2]
The Power of Brand Experience: "A good brand should allow customers to close their eyes and imagine what their office looks like, and even the personality of the boss." [9]
- Learning: A strong brand permeates every aspect of the company and creates a distinct, memorable culture that customers can feel, similar to brands like Starbucks or Muji. [9]
A Product with Temperature: "From the very beginning of our business, we hoped to be a great enterprise, a respected brand, and to make a product with temperature to deliver beauty." [6][7]
- Learning: The ultimate goal is to create products that are not just commercial items but also carriers of positive emotions and aesthetic value. [6][7]
Made in China, Culture in China: "It is precisely Chinese manufacturing and Chinese culture that have made us what we are." [11]
- Learning: Wang Ning acknowledges the crucial roles of China's advanced manufacturing capabilities and its vast, receptive market in POP MART's success. [11]

On Consumers and Market

The Rise of Subcultures: "It's because the post-90s and post-00s have become the main consumers in society that many subcultures have the opportunity to rush to the forefront of mainstream culture." [8]
- Learning: POP MART's success is partly due to timing—tapping into the desire of younger generations for niche, identity-defining products as they gain economic power. [8]
Adults Also Buy Toys: "Initially, many people in China didn't know about this category and didn't believe that 'adults also buy toys'." [6]
- Learning: POP MART played a key role in creating and legitimizing the market for adult collectible toys in China, in part by organizing large-scale toy shows to promote the culture. [6]
Satisfaction and Presence: Wang Ning believes consumers buy POP MART toys to fulfill two core psychological needs: "satisfaction" (basic spiritual pleasure) and "a sense of presence" (higher-level social and self-identity needs). [1]
- Learning: The toys are not just objects; they are tools for self-expression and for signaling belonging to a community. [1]
Responding to "Hunger Marketing" Accusations: "We now sell 10 million LABUBUs every month... the sewing machines are about to emit smoke from working so hard." [12]
- Learning: While the company is accused of creating artificial scarcity, Wang Ning insists they are working at full capacity to meet overwhelming demand, highlighting the genuine viral popularity of their products. [12]
The Blind Box as a Mechanism: While often criticized, the blind box format is a core part of the experience, creating a sense of surprise and turning the act of purchasing into a form of entertainment. [13]
- Learning: This strategy, described as "loot boxes meets high art," drives high repeat purchase rates as consumers chase rare variants. [5]

On Entrepreneurship and Personal Growth

Early Entrepreneurial Spirit: Before university, Wang Ning started a summer soccer training camp, handling everything from printing and distributing flyers to coaching. [14]
- Learning: His entrepreneurial drive and willingness to take on challenges were evident from a young age. [14]
The Importance of Efficiency: From an early business venture, he learned that "efficiency is one of the important conditions for making money." [14]
- Learning: This early lesson in business fundamentals shaped his later, more complex ventures. [14]
Learning from Failure: An early video rental business failed due to the rise of online streaming. [14]
- Learning: This taught him a crucial lesson: "Sometimes what defeats you may not be your competitors or yourself, but the times. Therefore, any business model must adjust its direction in a timely manner with the development of the times." [14]
A Winning Mentality: "As a football fan since I was a child, I have a very strong desire to win. It was this desire to win that slowly supported my ambition and made me move forward fearlessly." [14]
- Learning: A competitive and ambitious spirit has been a driving force throughout his entrepreneurial journey. [14]
The Influence of Family: Growing up in a family of small business owners, conversations always revolved around business. [14]
- Learning: This early exposure to commerce made him "sensitive to business information" and instilled in him the belief that he was destined to be an entrepreneur. [14]

Additional Learnings from POP MART's Journey

Focus is Key: After starting as a general store for trendy products, Wang Ning decided to cut other product lines and focus solely on art toys, a pivotal moment for the company. [13][14]
Creating the Industry Standard: POP MART not only entered the art toy market but also helped define it by launching the first Beijing International Toy Show, which has become a major event in Asia. [6]
Direct-to-Consumer (DTC) Mastery: The insistence on directly-operated stores allows POP MART to control the brand narrative and collect firsthand consumer data, which is the essence of a successful DTC strategy. [3]
Globalized Supply Chain: To meet surging demand, POP MART established its first overseas production base in Vietnam, recognizing that "a globalized company must have globalized manufacturing." [3]
Aesthetic as a Moat: The unique and recognizable design language of POP MART's products serves as a strong brand identifier and a competitive advantage. [9]
The "Breathing Room" in Stores: Wang Ning emphasizes creating "breathing room" in his stores, with some spaces dedicated simply to displaying IP for photos, turning the retail space into an experience. [3]
Investing in the Ecosystem: POP MART has invested in animation studios and other ventures to expand the world of its IPs, though Wang Ning remains flexible about the best way to monetize them. [9]
First-Mover Advantage: "When people didn't think this was a huge business opportunity, we signed the scarce IP resources." [8]
The Power of Crossover Collaborations: Collaborating with brands from high fashion (Moncler) to footwear (Vans) expands the reach and cultural relevance of POP MART's IPs. [15]
Inspiring a New Generation of Consumers: POP MART has successfully tapped into the desire for aesthetic culture, scarcity psychology, and authentic storytelling. [16]
A Humble Beginning: The company started in a two-bedroom apartment in Beijing, a testament to its journey from a small startup to a global powerhouse. [17]
Defining the Category: POP MART became the editor of the "trend toy" entry on Baidu Baike (China's Wikipedia) and even launched a course on the subject at the Central Academy of Fine Arts. [8]
Data-Driven Creativity: While creativity is at its core, the company heavily relies on data to inform its decisions, from IP selection to production volume. [3][9]
Navigating Controversy: The company has faced criticism for its blind box model and accusations of fueling a speculative secondary market, issues it continues to navigate as it grows. [8][18]
An Enduring Mission: "We have a sense of mission in our hearts. We hope to make consumer goods with higher added value and become a new generation of world-class Chinese consumer brands." [2]

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