Case Analysis Report on the Internal Control of POP Mart Corporation

Abstract

Against the background of rapid development of the trendy toy industry and increasingly strict regulation, a sound internal control system is critical to enterprise compliance and sustainable development. As a leading player in the trendy toy sector, POP MART features high inventory turnover, frequent after-sales services, and intensive IP cooperation, which bring unique challenges to internal control management. Based on the five elements of internal control, this paper systematically reviews the current situation of POP MART’s internal control in control environment, risk assessment, control activities, information and communication, and internal supervision. It identifies prominent defects including unclear organizational responsibilities, insufficient identification of industry-specific risks, invalid authorization and approval, disconnection between business and financial data, and lack of normalized supervision mechanisms. Root causes include excessive emphasis on marketing over compliance, misalignment between internal control and industry characteristics, and incomplete full-chain management. Combined with the features of the trendy toy industry, this paper proposes targeted optimization strategies in organizational structure, risk early warning, process control, information integration, and supervision mechanisms, aiming to provide a practical framework for POP MART and a reference for the whole trendy toy industry.