This summer season, the monster toy Labubu charmed the world with its cute and chaotic power, commanding resale markups that would make day merchants or Rolex flippers blush. One secret blind field version was promoting for over 2,000% above retail prices, in accordance to Nomura. Last month, robbers in California staged a $30,000 heist.
Now, there are indicators that the secondary market is shedding steam — scalpers are panic-selling, watching prices crater by half or extra. But Pop Mart, the Chinese firm behind the phenomenon, stated the crash was simply what they wished.
“Our products are made for people who really connect with the art and joy they bring — and we love seeing that passion. Making this art accessible is key for us,” Pop Mart stated in an emailed assertion to CNBC.
“If purchases are solely for ‘making a profit,’ this model will eventually crash,” the corporate added.
Ashley Dudarenok, founding father of China analysis agency ChoZan, stated Pop Mart beforehand let resale prices run to promote desirability, however is now pivoting to a steadier, extra sustainable mannequin.
“Labubu’s resale secondhand market significantly boosted the popularity of the toy,” Dudarenok stated. “At the same time, it’s not very healthy long-term, because it alienates your real customers, long-term customers. And Pop Mart does not wish to be a one-hit wonder.”
SHANGHAI, CHINA – JUNE 09: Labubu figures and dolls are seen on show at a Pop Mart retailer on June 9, 2025 in Shanghai, China. From Southeast Asia and Europe to the United States and the Middle East, Labubu – the beloved character from Chinese toy firm Pop Mart – is taking the world by storm. (Photo by VCG/VCG through Getty Images)
Vcg | Visual China Group | Getty Images
The secondary market barometer
Resale prices of Labubu dolls started declining after Pop Mart ramped up manufacturing to meet demand, the corporate instructed CNBC, following complaints about scalpers.
Pop Mart now churns out round 30 million plush toys month-to-month – 10 instances increased than final yr’s manufacturing ranges, the Beijing-based firm stated.
But analysts level to cooling demand, notably in mainland China and for older variations, as one other issue.
“I think the scalpers are releasing inventory because they’re afraid that if they stock up too much, they can’t sell,” stated Hao Hong, chief funding officer of Lotus Asset Management.
Pop Mart shares have fallen 22% up to now month.
Jeff Zhang, an fairness analyst at Morningstar, sees the secondary market as a barometer for Pop Mart’s hottest merchandise. When demand outstrips provide, resale platforms grow to be the venue for transactions – and a key gauge of the place curiosity is headed.
Pop Mart’s shares have fallen 16% during the last month, however are nonetheless up greater than 200% year-to-date, in accordance to LSEG knowledge.
Beyond the bubble
Pop Mart doesn’t revenue from the secondary market; earnings come when customers purchase immediately. Still, the hype and notion of shortage generated helped.
A gold watch will final without end. I feel Hermès will final for a very long time… the doll will not.
Hao Hong
Chief funding officer, Lotus Asset Management
Bringing Labubu again to earth could also be vital, for the reason that mass-produced toys aren’t luxurious objects by nature.
“A gold watch will last forever. I think Hermès will last for a long time… the doll won’t,” Hong stated.
For now, analysts anticipate Pop Mart’s greatest hits like Labubu to stay sturdy via subsequent yr, helped by abroad growth, notably in North America and Asia-Pacific.
Pop Mart already operates a theme park and collaborates with worldwide manufacturers similar to Uniqlo, Disney and Coca-Cola. The firm is additionally investing in unique animation, it stated, to flesh out character personalities and backstories.
Given a product’s finite lifespan, firms want to capitalize on the excitement whereas it lasts, stated Morningstar’s Zhang. Pop Mart is additionally increasing past the blind field technique, which gave shoppers the dopamine hit that helped gasoline the craze however drew warnings from China’s state media about addictive results on youngsters.
The subsequent hit
The actual check for Pop Mart is not whether or not Labubu stays sizzling – it is whether or not it will probably strike once more.
Dudarenok in contrast Pop Mart’s groups to “modern-day anthropologists,” poring over the hopes and struggles of area of interest shopper teams to create characters that resonate.
“Pop Mart is consistently digging and looking and curating. And again, it also took Labubu a few years. It wasn’t that it was created and then three months later it became an international sensation,” Dudarenok stated.
“I believe that they will still surprise us with something cool in the years to come.”