Labubu Dolls Propel Pop Mart's Profits by Over 350%

Pop Mart, the toy company behind Labubu dolls, expects profits for H1 2023 to surge by 350%, fueled by tremendous global demand and celebrity partnerships.

Pop Mart, the Beijing-based toymaker known for its Labubu dolls, is set to report an impressive profit boost of at least 350% for the first half of this year. The company attributes this anticipated growth to a massive increase in revenues, which have more than tripled within the same period. Currently valued at over $40 billion, the brand has gained global recognition, which has been instrumental in enhancing profitability alongside effective cost control measures.

The Labubu dolls, which are characterized by their quirky, elf-like appearance and distinctive jagged teeth, have captured the attention of collectors around the world. These dolls have been in high demand, leading to long queues outside shops and necessitating temporary sales pauses in several locations due to overwhelming consumer interest. Pop Mart's unique marketing strategy includes selling toys in "blind boxes," a method that has faced scrutiny for promoting gambling-like tendencies and impulsive buying behaviors.

Since their debut in 2019, Labubu dolls have significantly contributed to Pop Mart's rise in the retail market, with over 2,000 vending machines and stores operating globally. The company went public on the Hong Kong Stock Exchange in 2020, and its stock valuation has soared by nearly 600% over the past year. International sales have played a crucial role, accounting for nearly 40% of total revenue in 2024.

Sales of Labubu dolls have seen a remarkable surge in the US, spurred by endorsements from high-profile celebrities such as Kim Kardashian and Lisa from K-pop sensation Blackpink. Notably, reports from equity research firm M Science indicated that Labubu sales in the US skyrocketed by 5,000% in June compared to the previous year.

Moreover, the frenzied demand has created a thriving resale market, where original Labubu dolls retailing around $10 can now sell for hundreds of dollars. An extraordinary auction in Beijing even saw a human-sized Labubu doll sell for an astonishing $150,000.

However, this immense popularity has also led to a rise in counterfeit products, dubbed Lafufu dolls, prompting Chinese authorities to seize over 46,000 fakes in June as they clamp down on the burgeoning black market for these toys. As Labubu dolls continue to dominate the toy scene, it remains to be seen how Pop Mart will navigate the challenges and opportunities ahead.