The Chinese retailer Pop Mart experienced a remarkable stock surge of over 12 percent on Wednesday, reaching its highest level since the company's public debut in 2020. This significant rise came after the company's chief executive, Wang Ning, announced that a mini version of its immensely popular Labubu dolls would be released as early as this week. These whimsical, toothy elves have become highly coveted fashion accessories globally, often spotted adorning designer handbags valued at thousands of dollars and cherished by celebrities like Rihanna, Dua Lipa, and Lisa, a member of the renowned K-pop group Blackpink.
During an earnings call, Mr. Wang revealed that the new mini Labubu dolls would be designed to hang on mobile phones, expanding their appeal. Previous releases of Labubu dolls have generated tremendous excitement, often selling out within minutes, crashing the company's website and app, and causing hours-long queues outside retail locations. This overwhelming demand underscores the brand's popularity and the fervor surrounding its releases.
While most of Pop Mart's revenue is derived from the Chinese market, the company reported staggering growth in its international sales during the first half of this year. Revenue from the Americas skyrocketed by an astonishing 1,142 percent compared to the previous year, fueled by the global phenomenon of Labubu dolls. Additionally, sales in Asia outside of China surged by 258 percent, and sales from Europe and other regions climbed by 729 percent. This remarkable growth was a testament to the overwhelming enthusiasm for Labubus, which accounted for more than a third of Pop Mart's total revenue during this period.
Pop Mart's stock, which trades on the Hong Kong Stock Exchange, has seen an astonishing increase of over 650 percent in the past year. In China, Labubu dolls are celebrated as a prime example of how a domestic product can achieve global virality. The People's Daily, the official publication of the Chinese Communist Party, even described this phenomenon as “a benchmark for China’s pop culture making inroads overseas.”
Onstage in London during the weekend, Lisa from Blackpink expressed her admiration for Pop Mart's toys, calling them her “secret obsession.” She sported a custom hot pink Labubu doll during her performance on the Deadline Tour. The rising popularity of Labubus has not only led to a thriving resale market but has also given birth to a wave of knock-offs known as “Lafufus.” These imitation dolls are almost as sought after as the authentic versions, showcasing the brand's significant cultural impact.
However, the rapid proliferation of these imitation dolls has raised safety concerns. Consumer protection agencies in both the United States and Britain have recently issued urgent warnings regarding the fakes, highlighting the risk that they could break into pieces and pose choking hazards to children. As the demand for Labubu dolls continues to grow, it is crucial for consumers to be aware of these safety issues when purchasing collectibles.
In conclusion, Pop Mart's innovative approach with the Labubu dolls, coupled with strategic marketing and celebrity endorsements, has established the brand as a trailblazer in the toy industry. As the company prepares to launch the mini versions of these beloved dolls, the anticipation from fans and collectors alike suggests that Pop Mart's success story is far from over.
