☕️ Good morning comrades,

Heading into the weekend, we’re doing a real clean-up here, because as of yesterday we’ve welcomed high-pressure cleaner specialists on board. We’re delighted to greet subscribers from Kärcher in the asiabits community.

Speaking of high pressure: Asia’s stock indices are worried about possible US involvement in the Middle Eastern conflict. Investors are selling off and moving into safer alternatives.

🚀 Benchmarks

🔢 Facts & Figures

1.3 billion USD

Proceeds raised by soy-sauce icon Foshan Haitian in its Hong Kong IPO.

14.9%

China’s urban youth unemployment rate in May; 0.9 pp lower than in April but 0.7 pp higher than a year ago.

757 billion USD

China’s holdings of US Treasury securities in April 2025—the lowest level since 2009.

Top Bit: 👜 Labubu: China’s Cult Monster Now Hangs on Birkins

China’s trend-toy powerhouse Pop Mart now sells its grinning monster “Labubu” in more than 30 countries. The craze has pushed its market capitalization to over $46 billion, and celebrities like Rihanna, Dua Lipa, and David Beckham are styling the plush on designer bags.

Details

🛍️ Distribution network: Over 530 Pop Mart stores, 2,000 “Roboshops,” and a new flagship theme park in Beijing.

📈 Revenue surge: Overseas sales in 2024 reached around $700 million, and the stock is up 565 % over the past twelve months.

🎁 Blind-box model: Buyers only discover which figure they receive after opening—driving collectibility and repeat purchases.

💰 Second-hand market: Limited-edition “Chaser” Labubus fetch up to $170,000 at auction; even standard keychains resell for over $200.

🌐 Soft power: State media celebrate Labubu as proof that Chinese creative IP “speaks a language the world understands.”

Why it matters

• Brand power – Pop Mart demonstrates how local IPs can become billion-dollar franchises without Hollywood backing.

• Retail trend – Blind-box gamification drives foot traffic and margins in brick-and-mortar stores.

• Cultural factor – Viral collectibles bolster China’s lifestyle influence beyond tech and auto sectors.

Background

Labubu was created by Hong Kong artist Kasing Lung. Pop Mart secured the license in 2019 after its initial blind-box successes with the “Molly” figures. Since the pandemic’s end, Labubu’s look—a fluffy body, nine teeth, and an off-kilter elf-grin—has tapped into an “anti-perfection” and nostalgia zeitgeist.

The craze particularly resonates with Gen Z and millennials: an affordable entry price, limited availability, and social-media friendliness. With global demand rising, Pop Mart plans to open 50 more US stores in 2025; analysts already rank it as the third-most valuable entertainment IP after Disney and Nintendo.

Further Reading: BBC, Caixin, Fortune

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Head Of The Day

Luo Yonghao

💡 From English teacher to live-stream superstar: As an online English teacher, he became an internet star thanks to viral lecture clips. In 2012, he founded Smartisan, whose messaging app Bullet Message amassed 7 million users in just three weeks.

By 2020, his debt pile had swelled to over ¥600 million (about $86 million). His solution was to become a Douyin streamer. Viewers loved his sincere, unpretentious style, and in a single three-hour session he generated ¥110 million in sales (about $15 million). Now he’s eyeing a comeback in the hardware business.

Our suggestion: highly digitized pressure washers!

Market Bit: 🤖 AI Avatars Generate $7.6 Million in Revenue in 7 Hours

Details

🛍️ Record Livestream: Star seller Luo Yonghao and his co-host used digital doubles for the first time—revenue: ¥55 million (≈ $7.65 million) in just over seven hours.

🧠 Baidu Technology: The avatars are based on Baidu’s large-language model, trained on five years of video footage, and interact with viewers in real time.

💸 Cost Savings: Virtual hosts need no studio, take no breaks, and work around the clock—production costs are only about 1 % of a stream with real people, according to operators.

🌐 Industry on the Rise: Companies like Johnsmith.ai already run dozens of AI shops, have generated over $500 million GMV for clients worldwide, and partner with brands such as LVMH, L’Oréal, and Nestlé.

⚖️ Regulatory Hurdles: Platforms (e.g., Douyin) are tightening rules; avatars must comply with advertising regulations and engage with viewers or face suspension.

Why it matters

• Monetization: Demonstrates that text- and video–based AI can generate revenue immediately and is not just a demo gimmick.
  

• Disruption of the creator economy: Brands can scale sales without human influencers; fee and agency models are coming under pressure.
  

• Cost advantage & 24/7 reach: Companies are shifting live commerce into permanent, multilingual streams—opening doors for the global expansion of Chinese platforms.

Further reading: CNBC

Top Reads

🇹🇭 Government Crisis: A recording of a private phone call published by Cambodia’s ex-PM Hun Sen makes Thailand’s Prime Minister Paetongtarn Shinawatra appear overly conciliatory. This has angered the military and the opposition, prompting a coalition partner to withdraw and leaving the entire government on shaky ground. More on this.

🇧🇷 Tariff Dispute over Chinese EVs: BYD is dispatching massive transporters loaded with electric vehicles to Brazil; industry groups and unions are demanding an immediate hike of import duties to 35 %, arguing that domestic production and jobs are at risk. More on this.

📱 Samsung Slims Its Foldable: At the official unveiling expected in July, the company plans to debut a significantly thinner Galaxy Fold 7 to narrow the lead of Chinese rivals like Honor and Oppo. At the same time, rumors are swirling that Apple may also enter the foldable market. More on this.

Optional Reads

China: The C929 long-haul jet is slated to fly commercially for the first time in 2035. More on this.

Russia: Putin hosts Indonesia’s President Prabowo in St. Petersburg and formalizes a strategic partnership. More on this.

India: It will become the world’s second-largest air-conditioner market, overtaking Japan. More on this.

🥠 Fortune Cookie of The Day

🏃‍♂️ Bonus Marathon: A paper mill in southern China is replacing its annual bonus with monthly rewards: employees who run 30 km receive an extra 30 % of their salary on top, and those who run 100 km get 130 %.

The company’s CEO, Lin Zhiyong, is a fitness fanatic himself. He was Dongguan’s first pioneer to summit both the North and South routes of Everest, and he emphasizes that employee health is directly tied to company success.

We expect that in the coming months some companies will start replacing cash bonuses with Labubu box rewards…

See you tomorrow,

Thomas, Michael & the Team of asiabits.

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