3 Winning Strategies Pop Mart Uses to Outperform Funko Pop! and Challenge Its Market Dominance

Shaking up the world of collectibles! because Funko Giant who built an empire Pop! It is facing a crisis that may not survive, with Funko admitting in a report to investors that the company has “significant doubt about its ability to continue as a going concern over the next 12 months.”

Or this could be Truly “the end of an era”

This is the king who once controlled the market completely. But it is being toppled not because of “the economy” as companies claim, but because outdated “business models” are being overthrown. “Business model” that is superior to Pop Mart Crush until there are no pieces left.

today Thumbsup Will take you to analyze this war from punch to punch. Find out why Funko is falling apart, and what strategy Pop Mart is using to grow like crazy in the same battle.

Funko The Falling King

Funko's Q3 2025 Earnings Numbers Are Investors' Nightmare

• Net income plummets 14.3% remaining $250.9 million
• The net loss was approximately $0.9 million. (compared to a profit of $4.6 million the year before)
• The home market (USA), which is the heart, shrank by 20.1%.
• Core Collectibles or figure Pop! that we are familiar with decreased by 12.0%

Funko blames this for “Tough retail environment”, higher taxes and that stores try to reduce stock But the real problem goes deeper than that. Foreign media pointed out that it was caused by “Overproduction” and “diminishing consumer interest”

The real point of death is The “financial health” report states that the company has total debt of nearly $250 million and is at risk. “Breaking the loan agreement,” which could lead to default on the loan This is why the “may not survive” warning is so creepy.

Funko is now struggling, turning its focus to smaller items like Bitty Pops and looking at “strategic options,” including a so-called “divestiture,” from its billion-dollar empire. To the struggle to survive

Pop Mart and its unstoppable growth

While Funko is sinking, Pop Mart is keeping its foot on the gas. Their earnings reports are the complete opposite picture.

• Update Q3 2025 (compared to Q3 2024): Total revenue explodes 245%-250%.
• Revenue in China (PRC) grows 185%-190%
• Income outside China (Overseas) grew like crazy 365%-370%.

This figure shows that “The retail environment” isn't tough for everyone. And when we delve deeper “First Half 2025 Report” (H1 2025) We see that Pop Mart is “ruthlessly attacking” Funko’s stronghold.

• Revenue in America (H1) grew +1,142.3%.
• Revenue in Europe and beyond (H1) grew +729.2%.
• Total revenue (H1) jumped 204.4%. reached 13,876.3 million yuan
• Net profit (H1, Non-IFRS) jumps 362.8%

This is not growth, this is actual “replacement”. And it happened because of 3 key strategies where Pop Mart performed better than Funko in every dimension.

3 knockout punches that Pop Mart used to dethrone Funko.

Punch 1: “IP creator” (Creator) vs “IP borrower” (Licensee)

This is the difference that defines a winner. Funko is a “platform for existing IP” (Licensed Model). Their business is to license everything that is hot, whether it be Marvel, Disney or Harry Potter. They are Culture Distributors waiting for others to make waves. Then I myself would slowly go to the island.

Pop Mart, on the other hand, is a “new IP creation factory” (Artist-Driven Model).

• Pop Mart's income comes from “Artist IPs” (self-created IPs) as high as 88.1% In the first half of the year
• The real hero is THE MONSTERS (Labubu Family) with enormous income growth +668.0%
• And here's Killer Stat: Labubu family's IP income. Just one family in 6 months (4,814.0 million yuan or approximately 660 million USD) is more than 2.5 times more than Funko's total quarterly revenue (250.9 million dollars)!

Pop Mart doesn't have to chase culture. They “create” their own culture, resulting in higher brand loyalty and better profit margins because they don't have to pay huge licensing fees.

Punch 2: “Product Revolution” (Plush) vs. “Saturation” (Vinyl)

Funko is dying because of saturation of its core products. The market is so inundated with Pop! Vinyl that consumers are “bored” and now they can just shrink it down to Bitty Pops.

But Pop Mart proves that they are. “Product Revolutionist”

• In the first half of 2025, “Plush toys products” It has become Pop Mart's largest category.
• Income from cloth dolls Explosive growth +1,276.2%
• Proportion of income from cloth dolls Accounted for 44.2% of total revenue. (Overtaking random box figures at 37.3%)

Pop Mart takes a strong IP like Labubu and extends it to a furry plush toy, creating a new “phenomenon”. It's an acumen in IP that Funko can't do.

Punch 3: “Ecosystem Control” (DTC) vs. “Reliance on Stores” (Wholesale)

Funko still uses old models. is to rely on wholesale channels and retailers like Walmart or Target. They are just “products” on someone else's shelf. resulting in no customer information and there is no direct relationship (Direct Relationship)

Pop Mart creates its own “empire” through its model. Complete Direct-to-Consumer (DTC)

• Has its own retail store 571 locations worldwide
• There is a vending machine. “Roboshops” up to 2,597 cabinets

These DTC channels are not just for “selling” but for “building relationships” and “collecting information” which leads to the ultimate secret weapon.

• Membership system (Membership): In mainland China, Pop Mart has registered members. 59.12 million people
• The important thing is 91.2% of sales come from these members.
• Members have a repeat purchase rate as high as 50.8%.

This is a “fortress” that Funko will never be able to break into. Pop Mart owns its customers from start to finish, while Funko remains just a “supplier.”

Thumbsup thinks that the sentence “Funko may not survive” even sounds harsh. But it is based on a harsh reality: Funko's crisis isn't just a financial one, it's a “strategic crisis.”

Funko is a “Culture Distributor” in an era where this model no longer works. They're cheap. “Culture Creator” like Pop Mart murdered in cold blood

Pop Mart creates a model that is superior in every way. They own the IP, they own the range of products (especially the timely Plush), and they own the customer relationships (DTC & Membership).

Funko's “Going Concern” warning isn't just an accounting technicality, it's a “bell-ringing” that the era of square-headed big-headed kings is over. And the new winner, Pop Mart, isn't on the way, they've already “arrived” and taken over the throne.

Reference: Funko 1, 2Pop Mart 1, 2