Labubu craze cools as Pop Mart sales slump

Pop Mart’s global sales fell by as much as 50% year on year in the three months to the end of September, according to the company’s latest figures, as the Labubu craze shows signs of cooling. Revenue in the US dropped by at least 70%, while collectors and analysts say the toys are losing some of the scarcity and online attention that helped make them a global hit.

The sales declines come after Labubus helped turn Chinese retailer Pop Mart into one of the world’s most valuable toy companies. The firm is still worth nearly $24bn and operates 500 shops in more than 30 countries, alongside 2,000 vending machines.

Collectors often bought the dolls in sealed “blind boxes”, paying around $15 or more without knowing which character was inside. Rare designs could command much higher prices on resale markets.

Ensito, a North Carolina collector who left a technology job in 2024 to make Labubu content full-time, told the BBC he had spent more than $50,000 on a collection of over 400 dolls. But his videos, once quick to reach 10,000 views, have struggled to attract the same audience, and he has shifted towards other collectibles.

“I walk into a Pop Mart and there’s a whole series of Labubus sitting there,” he said, arguing that the dolls no longer feel as exclusive. Ashley Dudarenok of China research firm ChoZan said Pop Mart’s increased production to meet demand had weakened that sense of scarcity.

The company declined to comment on its share-price movements and did not respond to questions about falling sales. Its shares have dropped by more than half from last year’s peak, despite its continued scale.

Can Pop Mart build lasting characters?

The slowdown has prompted questions about whether the brand can keep customers interested beyond a viral moment. Marketing lecturer Samer El Hajjar said investors were concerned that global success might not translate into long-term customer loyalty.

Pop Mart faces competition from other collectibles, including Sonny Angels and Smiski figures, as well as blind-box ranges featuring established properties such as My Little Pony and KPop Demon Hunters. Miniso, which sells Disney and Marvel blind boxes, has more than 8,000 shops worldwide.

Pop Mart has also tried to extend its brand through a Beijing theme park and a planned Labubu film. Dudarenok said the challenge was to make people love a character without a celebrity promoting it.

Some collectors say they are buying less often or choosing more carefully, while others remain devoted. Hedy Khaled, who owns 70 Pop Mart figures, told the BBC that falling sales did not necessarily mean Labubus had lost their appeal. Katelynn Carlson said the pleasure of collecting, rather than online hype, still motivates her.