Earlier than the Labobo dolls take over… (Labubu) Markets and topping social media websites with its crafty smile, many haven’t heard of the Chinese language toy firm Pop Mart (Pop Mart) .
However at the moment, after shoppers all over the world are queuing in lengthy strains to accumulate one in all these small dolls, the corporate has change into a outstanding identify within the international leisure trade.
Pop Mart’s gross sales jumped 245% year-on-year in the course of the July-September quarter, catching the eye of traders and stunning the markets.
Due to this wonderful progress, the corporate has change into probably the most invaluable listed toy firm on the planet, with its market worth reaching about $38 billion, which is thrice greater than the worth of the Japanese firm “Sanrio”, which owns the “Good day Kitty” character, and practically seven instances the worth of the American “Mattel”, maker of “Barbie” dolls..
Overseas markets
Right this moment, Pop Mart shops are unfold in about 40 international locations, and it’s estimated that about 40% of its gross sales come from international markets, particularly in wealthy international locations, in a transparent problem to the prevailing notion that Chinese language manufacturers can not penetrate client markets within the West..
However the query traders are asking now’s: How a lot can Pop Mart develop?
Regardless of the overwhelming success, there are considerations amongst traders that the corporate’s meteoric rise has reached its peak. Its Hong Kong-listed shares have fallen by a few third of their worth since their peak in August.
One motive for this concern is the decline in resale costs for Labobo dolls on the secondary market, which has been seen as an indication of a potential lull in demand..
Shock bins
Labobo dolls are often bought in “shock” bins, the contents of which the customer doesn’t know till after opening them, and the obsession with accumulating uncommon copies has led some to spend large sums of cash to acquire sure dolls.
The value of a uncommon chestnut cocoa doll with brown fur on the secondary market rose to 1,500 yuan ($210) in June, earlier than just lately falling to 780 yuan..
Nonetheless, this decline doesn’t essentially mirror weak demand, however slightly a rise in provide. For months, the corporate suffered from a provide scarcity, and clients had been compelled to scan codes QR And be part of digital ready lists that may prolong for weeks.
This elevated the media hype surrounding the merchandise, however was primarily the results of manufacturing limitations that prevented the rising demand from being met.
Some retailers took benefit of the state of affairs to fill up on dolls and promote them at ridiculous costs, and imitation copies of “Labobo” known as “Lavufu” unfold..
Increasing manufacturing capability
To confront this disaster, Pop Mart started increasing its manufacturing capability.
In accordance with HSBC Financial institution estimates ( HSBC), the corporate is anticipated to have elevated its manufacturing capability tenfold in comparison with the start of the 12 months.
Though the elevated provide has led to a decline in costs on the secondary market, new points are nonetheless being bought out inside moments, indicating that demand continues to be at its peak..
However the greatest problem going through the corporate now’s: Can it surpass the success of “Labobo”?
The character, which was created by a Hong Kong artist in 2015, didn’t obtain worldwide fame till it appeared with a well-known Korean star in April of final 12 months.
Since then, Pop Mart has been working to create “the following hit.” As of mid-September 2025, the corporate had launched 29 new merchandise, of which solely a fifth had been LaBobo dolls, whereas different characters akin to Skullpanda had been launched.» (Cranium Panda) Which is characterised by a softer and extra engaging look.”.
Leisure empire
Though the corporate’s roots are within the gaming trade, Pop Mart now aspires to change into an leisure empire just like Disney.
The American expertise has demonstrated the ability of constructing cross-media manufacturers, spanning from merchandise to motion pictures and theme parks.
Pop Mart has already moved on this course. In 2023, the theme park opened Pop Land (Pop Land) In Beijing, the place guests can work together with its well-known characters, together with “Labobo.”
The corporate plans to open extra parks, and can be engaged on producing an animation collection concerning the character, and final June it established its personal cinema studio..
Firm revenues
To date, the corporate’s revenues from industrial licensing are nonetheless restricted, estimated at lower than 10% of whole revenue, based on Jeff Chang of Morningstar Analysis, however he expects the proportion to rise as the corporate expands in growing its leisure franchises..
Nonetheless, the good success shouldn’t be with out political scrutiny, particularly in China. Whereas the federal government is targeted on selling superior industries greater than client manufacturers, the “Labobo” phenomenon attracted the eye of the Communist Occasion’s Propaganda Division, which held conferences with firm officers and requested them why their merchandise weren’t “Chinese language” sufficient.
In accordance with knowledgeable sources, Pop Mart officers defined that purely Chinese language merchandise are usually not in style overseas. As the corporate continues to broaden globally, it could quickly discover itself underneath tighter official oversight, and maybe direct interference from the authorities in its industrial and artistic future.
Supply: The Economist
