Pop Mart, the Chinese company behind the sensational Labubu dolls, is basking in a financial windfall as profits for the first half of the year are projected to soar by at least 350%. The Beijing-based firm has reported that revenues have more than tripled, placing its market value at a staggering $40 billion (£31.6 billion). Enhanced global recognition and savvy cost controls significantly contributed to this impressive profit increase.
Collectors are enamored with the quirky Labubu dolls—elf-like figures with jagged teeth—that have become a sensation worldwide, often selling out and generating long queues in stores. Known for its "blind box" sales strategy, Pop Mart has faced scrutiny for fostering compulsive buying behaviors, but there's no denying the success since the dolls' launch in 2019. The company operates over 2,000 stores and vending machines globally.
Since going public on the Hong Kong Stock Exchange in 2020, Pop Mart's stock has surged nearly 600% in the past year, with international sales accounting for 40% of total revenue in 2024. Notably, in June, Labubu sales in the US increased by an extraordinary 5,000% year-on-year, aided by endorsements from celebrities like Kim Kardashian and Lisa of Blackpink.
Pop Mart's collaborations with major brands, including Coca-Cola and the One Piece manga franchise, have amplified Labubu's visibility. In an auction last June, a human-sized Labubu doll fetched a jaw-dropping $150,000, exemplifying the booming resale market where original dolls sell for hundreds of dollars. However, with popularity comes imitation; over 46,000 counterfeit Labubu dolls were seized in June alone, as authorities clamp down on the black market targeting these cherished collectibles.
