At Pop Mart’s 2025 interim results briefing, chairman Wang Ning pulled a mini Labubu from his jacket pocket. The crowd cheered, as his gesture reinforced the brand’s image. Soon after, mini Labubus went viral online.
What surprised many was that despite its popularity, Labubu—along with several of Pop Mart’s bestsellers—saw prices plunge on the secondary market. On social media, consumers welcomed the drop, while scalpers and toy investors reported losses.
Data from e-commerce app Dewu shows that over the past 90 days, the average transaction price of third-generation Labubu collectibles has steadily fallen. As of publication, both sealed boxes and full collections were down about 80% from their peak.
The anxiety spread into the capital markets. Pop Mart’s share price has retreated over the past two weeks, closing at HKD 273.4 (USD 35.1) on September 11, more than 19.5% below its August 26 peak of HKD 339.8 (USD 43.7).
Some analysts argue that Labubu’s decline in the secondary market has dampened investor sentiment. Still, many institutions maintain a “buy” rating on Pop Mart. Zhongtai Securities noted that Pop Mart’s leading IPs continue to gain momentum and that overseas expansion remains broad. Morgan Stanley added that the price swings are driven more by technical and sentiment factors than by weakening fundamentals.
The Hang Seng Index’s latest reshuffle, effective September 8, included Pop Mart as a new constituent stock, which could face short-term sell-off pressure. Morgan Stanley also pointed out that the secondary market represents only a small fraction of total supply and demand, especially as Pop Mart increases production and curbs scalper speculation. Viewed alone, this metric could mislead.
In other words, the price drop and share adjustment may reflect the company’s own strategy. Wang may have deliberately punctured the get-rich-quick narrative that once defined the resale market.
Cutting out the middleman
Pop Mart has long emphasized its reliance on strong IPs. At its 2024 earnings briefing, executives stated clearly that the company intends to sell products, not “financial products.” This year, it has moved to put that philosophy into practice.
In August, Yuan Junjie, president of Pop Mart’s supply chain center, said the company had increased plush toy production capacity more than tenfold from last year, reaching about 30 million units that month.
The impact was visible in new launches. According to ACGx, about 710,000 units of the mini Labubu were sold across platforms within 30 minutes of release, with all units available as ready stock. By contrast, the Labubu 3.0 “Big Into Energy” series was rolled out in eight presale batches, selling more than 700,000 units on Tmall alone. On July 10, Pop Mart conducted another large-scale restock.
These bulk releases squeezed out speculative bubbles. Scalpers, whose hoarding strategies no longer worked, began panic selling.
Still, Pop Mart’s early reliance on blind boxes with slim odds of drawing hidden figures created a complicated relationship with scalpers. For years, scarcity and high resale markups fueled consumer demand. But once an IP gains mass popularity, excessive hoarding can harm both growth and reputation.
Because Pop Mart sells directly to consumers, scalpers can intercept real demand at the source, distorting inventory flow and sentiment. To counter this, the company has sought to limit speculation and reduce the investment appeal of blind boxes.
Ideally, Pop Mart wants consumers to buy regular figures on the secondary market at or near retail prices, while hidden editions reflect genuine supply and demand. In doing so, it could regain pricing power, safeguard consumer rights, and preserve IP reputation, while leaving some margin for traders. For everyday consumers, that would reduce inflated premiums and soften criticism that the company tolerates scalping.
This balance may allow Pop Mart to reach more consumers through resale without undermining its core market.
Testing Labubu’s longevity
Labubu’s global rise was unexpected. For years after Pop Mart signed Hong Kong artist Kasing Lung, the character remained niche. That changed in June 2024, when Blackpink member and Thai pop star Lisa promoted Labubu on social media. Pop Mart capitalized by accelerating overseas store openings and expanding the character’s image abroad.
According to 36Kr, Pop Mart has since launched Labubu collaborations with Vans, Uniqlo, and Godiva, though only the Uniqlo partnership gained wide traction. As Wang has suggested, Labubu’s commercial potential is just beginning to unfold.
This mirrors earlier concerns in Pop Mart’s history. At one time, investors feared it was too reliant on the Molly IP for revenue. Now, even with Molly and other IPs growing rapidly, Labubu’s dominance creates a similar risk.
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In the first half of 2025, The Monsters, a series that includes Labubu, generated RMB 4.81 billion (USD 673.4 million), nearly one-third of total revenue. Molly brought in RMB 1.36 billion (USD 190.4 million), up 73.5% year-on-year. Skullpanda earned RMB 1.22 billion (USD 170.8 million), up 112.4%. Crybaby also took in RMB 1.22 billion (USD 170.8 million), up 248.7%. Dimoo followed with RMB 1.11 billion (USD 155.4 million), up 192.5%.
13 other IPs—including Hirono, Twinkle Twinkle, Pucky, and Hacipupu—each earned more than RMB 100 million (USD 14 million).
But as Pop Mart scales up production and reduces scarcity, secondary market prices have declined across premium IPs. On Dewu, Twinkle Twinkle’s “Sweet Dreams Forecast” series has fallen 35% from its peak for unopened boxes, while its hidden edition “Lucky Strike” is down 42%. Molly’s “Pocket Friends” series has dropped 51% for unopened boxes, and its hidden figure “Don’t Mess With Me” has plunged 69%.
In the short term, these trends weigh on Pop Mart’s stock. But over time, stabilizing resale premiums could boost consumer confidence. Persistently high secondary prices risk alienating genuine fans.
In June, Pop Mart announced plans for an animated series, Labubu and Friends. Wang told 36Kr that once an IP takes off, it can sustain a long lifecycle.
The real test ahead is whether Labubu can sustain its momentum, and carry Pop Mart through to its next breakout IP.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xie Yunzi for 36Kr.