Chinese consumer stocks popular with Gen Z investors are staging another rally, with robust earnings and bold growth forecasts fueling demand for companies that sell everything from toys to bubble tea and jewellery.
Pop Mart Leads the Charge
Pop Mart International jumped 12% to a record high this week after unveiling a mini version of its hit Labubu dolls. The company also signaled there is more upside to annual revenue, reinforcing optimism around its growth trajectory. The rally lifted Pop Mart’s market capitalization to $55 billion, surpassing e-commerce heavyweight JD.com.
Brokerages including JPMorgan, Jefferies, and Goldman Sachs raised their price targets on the stock, citing confidence in Pop Mart’s intellectual property portfolio and rapid overseas expansion, with sales abroad soaring more than 400% year-on-year.
Laopu Gold Shines
Laopu Gold Co. delivered stronger-than-expected first-half profits, sparking a 9% surge in shares on Wednesday before investors locked in some gains the following day. The stock remains one of the top performers on the Hang Seng Composite Index, up 211% year-to-date.
Analysts say further upside could come from new store openings and the possibility of FTSE index inclusion, both of which would attract fresh investor inflows. Like Pop Mart, Laopu also reported 400%+ overseas sales growth, signaling international demand for Chinese luxury products.
Bright Spots Amid Weak Consumption
While China’s overall consumer spending remains fragile under the weight of tariffs, debt stress, and sluggish growth, young consumers are proving resilient. Gen Z buyers, in particular, continue to spend on products and experiences that deliver emotional value — from designer toys to jewellery and trendy drinks.
“They are well established to continue to build on their existing formulas of translating market data into emotionally-resonant products,” said Mark Tanner, managing director of consultancy China Skinny.
Next in Line: Cosmetics, Bubble Tea, and Toys
Investors will get more signals in the busy earnings calendar next week:
- Mao Geping Cosmetics reports Wednesday.
- Mixue Group (ice cream and drinks, up 130% since listing) also reports Wednesday.
- Guming Holdings, the bubble tea chain whose shares doubled after its Hong Kong IPO, reports Tuesday.
- Bloks Group Ltd, another toy maker, announces earnings Friday.
Local Brands Winning Share
Homegrown brands beloved by Gen Z are steadily taking share from global peers, thanks to competitive pricing, rapid product innovation, and savvy social media outreach.
“This is just the tip of the iceberg,” said Scott Chen, managing partner for Asia at private equity firm L Catterton. “Consumers are still spending. They are, however, becoming more selective and sophisticated.”
Pop Mart and Laopu Gold’s explosive results underscore the power of Gen Z demand in China. While the broader consumer backdrop is weak, companies that tap into cultural trends and emotional appeal are proving they can defy the slowdown.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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