Research On Financial Analysis Of POP MART Based On Harvard Analysis Framework

As the Internet economy keeps driving the expansion of the designer toy market over time,designer toy products such as blind boxes are rapidly becoming the vogue of the industry with their unique features of surprise and mystery.However,designer toy companies are bottlenecked in their development as the market becomes fiercely competitive and products are heavily homogenized.Pop Mart,as a leader in the designer toy industry,is currently growing sluggishly.In this paper,this company is thoroughly investigated from its strategy,accounting,finance,and prospects using the Harvard Analytical Framework.Then,it will identify the obstacles to its development and propose recommendations for improvement.Based on the Harvard Analytical Framework and Pop Mart’s financial reports from 2018 to2022,this paper presents a comprehensive analysis of its operating results and financial position.Firstly,Pop Mart’s development status and business strategies are explained.Its strategies are summarized by analyzing its macro environment,industry conditions and its strengths and weaknesses with PEST analysis,Porter’s Five Forces Model and SWOT analysis.Secondly,the accounting analysis mainly deals with Pop Mart’s three major statements and important accounting items to evaluate its accounting policies and the quality of accounting information.It highlights key items such as inventory,accounts receivable,and bad debt provisions and conducts an in-depth examination of relevant items and data to provide a basis for subsequent analysis.Thirdly,a financial analysis is performed.It quantitatively analyzes Pop Mart’s solvency,operating capacity,profitability and growth capacity.Moreover,vertical and horizontal comparisons are conducted on the company’s indicators,ratios,and variations trends.Thus,it can support Pop Mart’s managers,creditors and investors in making scientific decisions.Finally,the company’s prospects are analyzed.Combined with the comprehensive analysis of Pop Mart in the first three dimensions,it predicts the company’s development prospects and industry trends,identifies future business risk points and clarifies the potential opportunities and challenges.Based on the analysis results of the above four dimensions,it clarifies the company’s problems and proposes suggestions for improvement to help the company clarify its development path,optimize its business strategies and enhance its profitability.Based on the above research,this paper draws the following recommendations for Pop Mart to achieve sustainable and stable development: First,Pop Mart should reinforce its IP innovation and inject cultural connotation.It should be supported by content creation and promote diversified cooperation.Second,it should upgrade inventory management,step up accounts receivable management,enhance cost management control,and moderately increase the use of financial leverage.Third,the quality of after-sale services should be upgraded,and users should be engaged in value co-creation.Fourth,it should make more efforts in resource management and implement intellectual property protection.Finally,it should support market regulation and guide customers for rational consumption.The conclusion is intended to provide a reference for the development of other designer toy enterprises while offering an optimized development path for Pop Mart.