Here Group Q3 FY26 earnings call HERE

Here Group's core strategy revolves around building internal capabilities, developing IP-related products and content, and optimizing channels. WAKUKU remains the flagship IP, contributing RMB 102 million in revenue, or 62.2% of total revenue, in Q3 FY26. SIINONO, launched in H2 2025, demonstrated significant growth with revenue up 73.1% QoQ, reaching 20.2% of total revenue, validating the company's IP incubation model. The company emphasizes that long-term IP momentum, built through sustained user interaction and emotional connection, is prioritized over short-term sales.

The company is actively expanding its offline presence through D2C brand stores and roboshops. As of June 5, 2026, 7 D2C brand stores have been opened in 4 cities, including 2 new stores in Shenzhen and Xi’an. Additionally, 15 roboshops (unmanned vending machines) have been rolled out across 3 key cities nationwide by June 1, 2026. These channels serve as both sales points and brand touchpoints, enhancing IP accessibility and collecting valuable data on product performance and purchasing trends.

Online activities are viewed as a means to empower IP and product operations, rather than an end goal for sales. The company's social media presence is growing, with cumulative followers across major platforms approaching 800,000 as of June 1, 2026. For global expansion, Here Group plans initial market tests, including a pop-up store in South Korea and participation in a U.S. trade show. The company also seeks to optimize cooperation with channel partners for mutual benefit.

The pop toy market is experiencing a cool-down in the first half of the year, attributed to rapid supply chain growth reducing scarcity, leading to a normal market correction. The competitive landscape is shifting from product capability to full-chain IP operation, requiring integrated IP design, supply chain, brand, and sales. Here Group differentiates itself by focusing on self-owned IPs (over half of its portfolio) and deep co-creation models for licensed IPs, aiming for long-term value rather than short-term licensing deals.

Maintaining IP momentum relies on consistent delivery of events, content, products, and experiences aligned with IP characteristics. The company focuses resources on core IPs, plans next-generation products with new materials and play styles, and explores IP-driven experiences through a light asset model, such as a ferry at Hong Kong Center Pier. Partnerships with variety shows, celebrities, and brands, along with strengthening offline touchpoints, are crucial for growing IP influence and extending the IP life cycle.

Here Group is exploring category expansion opportunities, primarily extending from its existing IPs rather than launching new categories for their own sake. The strategy focuses on gradually expanding into IP-related merchandise, particularly lifestyle products, to transform IPs into everyday companions. The company emphasizes a disciplined pace, preferring to go deep with core IPs rather than broad with many SKUs, and is actively researching opportunities in smart companionship and tech integration like AI with pop toys.