Pop Mart’s Labubu: From Blackpink fave to fading frenzy for Chinese toy firm

A frenzy over Pop Mart’s Labubu, a toothy but adorable toy creature beloved by millions of Asian fans including a member of K-pop group Blackpink, might be cooling. Resale prices for the toys on speculative markets have steadily fallen closer to retail prices over recent months, and analysts warn that the fading fad could put a dent in the Beijing-based company’s revenue this year.

A Halloween-themed Labubu is currently selling for 170 yuan (US$23.20) to 300 yuan on Xianyu, one of China’s most popular second-hand marketplaces. The special holiday edition sold for 159 yuan in the company’s official online store when it launched in September.

“The decline in the excitement surrounding Labubu is both expected and entirely normal, as no intellectual property [IP] character can sustain such frenzy indefinitely,” said Richard Lin, chief consumer analyst at SPDB International.

Still, the elfin character’s power has not completely faded. “Given that Labubu went viral in international markets during the last quarter of 2024, which subsequently fuelled its popularity in China, the IP is expected to drive continued growth in the Chinese market through the first half of the year, and potentially even into the first nine months,” Lin said. “However, the fourth quarter may pose challenges due to the high base established in prior periods.”

Shares of Hong Kong-listed Pop Mart corrected by nearly 9 per cent in the final days of 2024, following a 370 per cent surge over the past year.

The falling prices for Labubu toys are partly due to a company-driven increase in supply, which is “aimed at enhancing the product’s accessibility and optimising the fan experience”, according to Huatai Securities.

“With the regular release of [Pop Mart’s] vinyl toys in the future, people should not place too much emphasis on the price premiums of blind boxes,” Huatai analysts wrote, referring to packages that conceal the figure from the buyer and sometimes contain rare versions. “[Instead,] the larger vinyl figures and big dolls will offer greater collectability and potential for appreciation.”