Labubu Dolls Fueling Massive Profits for Pop Mart: A 350% Surge in Six Months

Pop Mart's Labubu dolls are not just a trend; they are transforming the toy market with soaring profits and international notoriety.

Pop Mart, the Chinese toy manufacturer behind the immensely popular Labubu dolls, has announced staggering profit projections for the first half of this year, anticipating a remarkable surge of at least 350%. This surge is bolstered by revenues that have more than tripled, solidifying Pop Mart's status as a global retail powerhouse. Based in Beijing, the company now boasts a stock market valuation exceeding $40 billion (£31.6 billion), driven by increased brand recognition and stringent cost control measures.

The Labubu dolls, characterized as fictional elf-like creatures with distinctive jagged teeth, have taken the toy world by storm, generating immense demand that has resulted in long queues at stores worldwide. Pop Mart is renowned for its unique business model that involves selling toys in "blind boxes," a marketing strategy that has faced scrutiny due to its propensity for promoting behavior akin to gambling. Since their launch in 2019, Labubu dolls have played a pivotal role in establishing Pop Mart's retail footprint, which spans over 2,000 vending machines and outlets globally.

Having entered the Hong Kong Stock Exchange in 2020, Pop Mart's stock market performance has sky-rocketed, with a valuation increase of nearly 600% over the last year. Interestingly, sales outside of mainland China accounted for approximately 40% of the company’s total revenue in 2024. Due to overwhelming demand, numerous retail outlets globally have had to halt Labubu doll sales temporarily.

The dolls have particularly gained traction in the United States, aided by celebrity endorsements from figures like Kim Kardashian and Lisa from the popular K-pop group, Blackpink. Additionally, strategic partnerships with prominent brands such as Coca-Cola and the manga franchise One Piece have significantly amplified Labubu's visibility on the international stage. According to estimates from equity research firm M Science, Labubu sales in the U.S. skyrocketed by an astonishing 5,000% in June compared to the previous year.

M Science senior analyst Vinci Zhang remarked on the unparalleled phenomenon, stating, "I've not seen anything like this from other toy companies." He pointed out the company's potential for growth in the U.S., where it maintains around 40 stores compared to a staggering 400 in China. This fervor for Labubu dolls has catalyzed a thriving resale market, where original $10 dolls can now command prices in the hundreds. Recently, an oversized Labubu doll fetched an incredible $150,000 at a Beijing auction.

However, the immense popularity of Labubu dolls has also opened the door to counterfeiting, with counterfeit versions commonly dubbed "Lafufu" flooding the market. In June alone, Chinese authorities executed a crackdown, confiscating over 46,000 fake Labubu dolls in a campaign against this burgeoning black market. With the Labubu craze showing no signs of abating, Pop Mart is poised for further expansion and continued profitability as it navigates the complexities of a rapidly evolving toy landscape.