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Time of India
16-07-2025
- Entertainment
- Time of India
Labubu craze: Pop Mart profits up 350% ; collaborations with global brands boost reach
Pop Mart soars on Labubu craze (Image: AP) Chinese toy giant Pop Mart is expecting its profits to increase by over 350 per cent in the first half of this year, driven by the remarkable global craze for its Labubu dolls, the company announced. The Beijing-headquartered firm, popular for its blind box collectibles, said revenues for the January-June period more than tripled, fuelled by booming international demand and cost control. Pop Mart's stock market valuation has soared to over $40 billion, with its shares surging nearly 600 per cent in the past year. The viral Labubu dolls — quirky, elf-like characters with jagged teeth — have become a global sensation, flying off shelves and sparking long queues in stores worldwide. Originally launched in 2019, the dolls have boosted Pop Mart into a major international retailer, now operating over 2,000 vending machines and stores globally. Sales outside mainland China made up nearly 40 per cent of total revenue in 2024, a remarkable shift for the company which began trading on the Hong Kong Stock Exchange in 2020. Vinci Zhang, senior analyst at equity research firm M Science, told the BBC that Labubu obsession in the United States has hit new highs, thanks in part to high-profile endorsements from celebrities like Kim Kardashian and Blackpink's Lisa. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Get ₹2Cr life cover@ ₹700 p.m. ICICI Pru Life Insurance Plan Get Quote Undo According to M Science estimates, Labubu sales in the US surged by a staggering 5,000 per cent in June compared to the same period last year. 'I've not seen anything like this from other toy companies,' Zhang remarked, highlighting the explosive growth in demand. Pop Mart's collaborations with major brands like Coca-Cola and popular manga series One Piece have also raised Labubu's global appeal. The frenzy has also sparked a thriving resale market, with dolls previously priced at 10 dollars now being sold for hundreds of dollars. In one case, a human-sized Labubu was auctioned for a massive 150,000 dollars in Beijing this June. The brand's popularity has also led to a surge in counterfeit products, often dubbed "Lafufu dolls". In June alone, Chinese authorities seized over 46,000 fake Labubu, as part of a larger crackdown on the black market. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
CNBC
16-07-2025
- Business
- CNBC
Chinese toymaker Pop Mart shares slide despite strong earnings forecast
Shares in Pop Mart International tumbled over 6% on Wednesday after the toymaker issued a bullish first-half earnings forecast. The Beijing-headquartered company is behind the global craze around Labubu, a toothy, pointy-eared monster-like character. The toymaker sells its dolls in a blind box to buyers who don't know what character is inside until they open it, with prices ranging from about 59 yuan to 5,999 yuan. In a filing to the Hong Kong stock exchange on Tuesday, Pop Mart said it expects at least a 350% increase in profit and at least a 200% increase in revenue for the first six months of 2025 from the same period last year. The negative stock reaction may be a reflection of investors' conservative outlook on Pop Mart's sales growth, Jeff Zhang, an equity analyst at Morningstar, told CNBC on Wednesday. "Despite stellar earnings growth in H1, it may have peaked and will likely see slowdown starting in H2," he added, saying it may have prompted many investors to take profits. Zhang maintained his view that Pop Mart's shares have been "overvalued," as the high level of uncertainty over the popularity of its major intellectual properties was not fully priced in. In the filing Tuesday, the company attributed its robust profit forecast to the greater global recognition of its brand and intellectual properties — referring to signature toy characters such as Labubu, Molly and Crybaby — and diversified product portfolios, as well as a growing portion of overseas sales. It also benefited from a substantial increase in profits driven by the economies of scale, cost optimization and tighter expense controls, the company said. Buoyed by the runaway success of Labubu figurines, Pop Mart's Hong Kong-listed shares have been on tear this year. Despite the latest tumble Wednesday, its share prices have nearly tripled year to date, trading at 247 Hong Kong dollars ($31.5) at 11:43 p.m. ET. The stock suffered a brief setback last month after an editorial from Chinese state media took aim at businesses enticing young children to spend excessively on "blind cards" and "mystery boxes," a model central to Pop Mart's appeal. Investors have largely shrugged off fears of a regulatory crackdown on Pop Mart, which counts Gen Zers and millennials, rather than young children, as main consumer demographic. But despite the latest pullback in share prices, many investment banks held on to their bullish calls for Pop Mart to remain one of the hottest consumer brands in China this year. In the first quarter of this year, the toymaker's revenue rose 170% from a year earlier, buoyed by a nearly 480% surge in overseas markets and about 100% revenue growth at home. The latest profit forecast was "slightly above the capital market's already-high expectation," analysts at Nomura Bank said in a note Tuesday, underscoring the "continued acceleration of sales growth." The investment bank lifted its target price for Pop Mart to 330 Hong Kong dollars from 291 Hong Kong dollars, keeping the stock as its "preferred pick in the China consumer space." Pop Mart's soaring popularity has been a stark contrast to the broader economic downturn in China which has led consumers to become more frugal and scale back on spending. A human-sized Labubu was sold for $150,000 at an auction in Beijing last month. "When optimism about long-term financial prospects fades, people shift from investing in the future, [buying] homes, cars, to seeking momentary emotional rewards," said Ivy Yang, founder of Wavelet Strategy, New York-based consultancy. "Each collector [is] projecting their own mood or story onto the toy. This is why Pop Mart differs from Sanrio or Miniso," Yang added, referring to the Japanese toymaker behind Hello Kitty and a Chinese retailer for consumer goods such as cosmetics, stationery and toys featuring IP design.
West Australian
06-07-2025
- Business
- West Australian
China slammed ‘blind box' addiction — but that shouldn't faze Labubu-maker Pop Mart
Beijing may have warned against 'blind box' toys, but analysts are betting that Pop Mart International — the company behind Labubu dolls — will remain one of China's hottest consumer brands this year. In an editorial on June 20, China's state media People's Daily called for tighter regulations around selling blind-boxed toys and trading cards to children under the age of eight, such as verifying buyers' age upon payment and requiring parental approval in online transactions. Without naming Beijing-headquartered Pop Mart, the paper slammed businesses for enticing young children to spend heavily on 'blind cards' and 'mystery boxes' — a model central to Pop Mart's appeal. The company often sells its dolls in a blind box to buyers who don't know what character is inside until they open it. Sequentially, Pop Mart's share price plunged 12.1 per cent for the week ending June 20, marking its steepest fall since late 2023, denting a massive rally that sent its shares over 600 per cent higher over the last 12 months. Its stock has regained some ground since then, hovering near the all-time high levels hit in mid-June. The state media commentary on blind-box toys is reminiscent of Beijing's regulations on video games in recent years, which were aimed at curbing gaming addiction and unsupervised in-game purchases by minors. That led to restrictions on how long minors can play video games, as part of a sector-wide crackdown that wiped out billions of dollars in value from China's gaming giants. 'The magnitude of Chinese policymakers' impact [on businesses] is way higher than that in other countries,' said Alfredo Montufar-Helu, senior advisor for the China Center at The Conference Board, a think tank. That said, analysts view the fears of regulatory headwinds as overblown as Gen Zers and millennials, rather than young children, are Pop Mart's main consumer demographic. Pop Mart will largely be insulated from intensifying regulatory scrutiny as it targets younger adults with adequate purchasing power, Montufar-Helu said. Local peers that focus on minors, however, will likely be 'heavily impacted,' said Jeff Zhang, equity analyst at Morningstar. There's another factor that could cushion the regulatory impact on Pop Mart. It's increasingly driven by overseas sales, especially in Southeast Asia, he said. And the share of its China revenue will fall to about 30 per cent in the next 10 years, he projected. Pop Mart's overseas sales in 2024 have already surpassed the company's overall sales in 2021. Pop Mart derived about 61 per cent of its revenue from mainland China in 2024, according to its annual report, drawing the rest mainly from Southeast Asia and East Asia, as well as Hong Kong, Macau and Taiwan. Its sales in North America grew more than 550 per cent last year from a year earlier, and the company has 90 physical stores and vending machine spots across the United States. HSBC Bank expects Pop Mart's overseas revenue in 2025 to more than double to 14 billion yuan ($3b) from 2024 on strong sales momentum from 'Labubu 3.0,' released in April. This figure would account for more than half of its entire projected revenue this year, up from 39 per cent in 2024. That just builds on the meteoric growth that the company enjoyed last year, when revenue more than doubled to 13.04 billion ($2.8b) yuan, while profits nearly tripled. The rapidly growing popularity of the ugly-cute toys contrasts with otherwise sluggish consumption in the country, as many become increasingly frugal in the face of an economic slowdown. Younger Chinese consumers want to build toy collections for the sense of 'affordable exclusivity' it gives them, said Montufar-Helu, as it can be satisfying to be 'one of the lucky ones to get the special edition' at a reasonable price. Pop Mart sells blind-boxed toys with prices ranging from about 59 yuan ($12.50) to 5999 yuan ($1277). Collectors often spend hundreds or thousands of yuan, and rare models can fetch six-figure sums at second hand auctions. 'The very point about blind boxes is the unknown, the uncertainty. There is some inherent curiosity about what someone's gonna get. That brings about a certain degree of excitement when people are buying blind boxes,' said Chris Wong, senior clinical psychologist at Singapore-based Resilienz Clinic. 'When that uncertainty is resolved,' he said, referring to when the blind box is opened, '[that] usually comes with certain pleasant emotions, like fun, surprise and delight. That also plays a part in why people just keep on doing that.' Seeing others share their own experiences of blind boxes on social media also amplifies such a response from the brain, as it fulfils the human need for social connection, the psychologist said. But although the Labubu frenzy shows no sign of slowing, Pop Mart still faces other challenges that may dent its momentum, analysts said. 'While Pop Mart's major IPs, such as Labubu have received some global popularity over the past two years . . . there is no guarantee that what is popular now will stay relevant over the next five to ten years,' Mr Zhang said. Other risks include uncertainty around the company's ability to meet shifting demand and scalping, which could drive genuine consumers out of the market, HSBC analysts said. Pop Mart issued a rare apology last month after a surge in orders caused delivery delays, with consumers complaining online about not having receiving orders weeks after placing them. Counterfeit toys may also dampen Pop Mart's reputation at home and abroad, analysts said, despite the government's efforts in stepping up scrutiny at export checkpoints. Customs at the Ningbo port, one of the country's busiest ports, seized over a million counterfeit Labubu dolls in the first six months of this year, over intellectual property violations and smuggling concerns. To keep its brand fresh, Pop Mart has taken a page from Disney's playbook, doubling down on expanding its IP portfolio, launching pop-up stores, a film studio and a theme park. Pop Mart's founder Wang Ning once hinted at his aspiration to turn the company into 'China's Disney.' But those initiatives don't come cheap. 'Animation production requires a strong storytelling team that can consistently deliver compelling narratives,' said Echo Gong, an independent Shanghai-based retail consumption consultant. She added that managing a theme park also demands an entirely different skillset and far greater investment than simply selling toys.
Economic Times
05-07-2025
- Entertainment
- Economic Times
Lafufus toy with fans; fake it till they almost make it
Reuters People look at Labubu dolls at the flagship store of Pop Mart in Shanghai, China June 13, 2025. REUTERS/Go Nakamura Labubus or Lafufus, what's in a name? as the Bard famously said. Well, for fans of the now iconic toy collectible – Labubu- there is a lot riding on the name as they battle a flood of counterfeits swamping the market. Pop Mart, the Beijing-headquartered retailer of the insanely viral Labubu dolls that were first created by the Hong Kong born, Belgium-based designer Kasing Lung for a story series The Monsters, has put in place a seemingly foolproof system to authenticate its products. But, to no avail according to Labubu fans who are discovering that the most alert among them are falling prey to duplicates that have now gained notoriety and recognition as – Lafufus. "I had picked up a Labubu for myself and had done an unboxing video which got a lot of views," one Chennai-based content creator who did not wish to be named told ET. The pint-sized dolls with pointy ears, large eyes, and a smile revealing nine teeth have grown into a global phenomenon since being launched in 'blind boxes' in 2019 after Pop Mart had licensed Lung's characters. These boxes sell for around $20–$30 but can go all the way up to even $300 and have turned into an addictive global phenomenon fuelled by celebrities flaunting their toys on tote bags. Last month, a life-sized Labubu doll sold for a record-breaking $150,000 (approximately Rs 1.28 crore) at a Beijing auction. " I thought it would be fun to do a video with my whole family unboxing their Labubus, so I picked up a pack of six. We did an unboxing video and even authenticated the product," said the creator cited above. As Pop Mart suggested, she scanned the QR code on the box which led her to the site where she had to key in the last four digits of the barcode to ensure that she had an original purchases passed the check and were proudly sported as her bag charms just like singer Rihanna and Bollywood persona Ananya Pandey. However, her joy was short lived because a keen-eyed collector spotted the fake as well as the dodgy credentials of the website providing fake authentication. She replaced the fake – a Lafufu – on her bag with a true-blue Labubu. But remains unfazed. 'Lafufus have their own fan base too!" she points out. Pop Mart itself has tried to crack down on these fakes. Last month Chinese customs authorities reportedly seized more than 46,000 counterfeit Labubu toys, showing the surge in knockoffs. The Chinese state media issued warnings about a growing 'black market chain' exploiting consumers and infringing on intellectual property sales have fuelled Pop Mart's galloping growth since the company listed on the Hong Kong Stock Exchange in 2020. Founder Wang Ning is among China's top ten billionaires with a net worth of $22 though are a real threat as they retail for as less as $7.50 apiece and are seen as a way to keep up with the trend without spending too much money on the original.'70-80% Lafufus'"The fakes have become so good," Abbas Zaveri, founder of sneakers, streetwear and collectibles marketplace HypeFly said. 'Things that customers could look out for is that the heads of the Lafufus tend to be very flimsy and the font on the box generally is embossed but the quality on the boxes of fakes tend to be sub-par."Another sure shot way of spotting a fake is the price. Anything that is being sold for under Rs 3,000 is likely not from Pop Mart. "Some Indian websites are selling a pack of six for Rs 9,000 whereas the original pack of six costs Rs 24,000 or more." Another reseller, Nikhil Jain who runs City Kicks India estimates that "about 70-80% of the dolls in the Indian market are Lafufus," he said.'The site URLs (that come up when the QR code is scanned) have subtle misspellings like "Pop Mari" or "Poap Mart" which are good tell-tale signs for this fraud. There are some marketplaces that have had to set up a team to authenticate their products because earlier they sold them as originals and customers figured out that they were being charged for an original but received a Lafufu instead." The fake trail is not limited to India alone, Scottish consumer watchdog Advice Direct Scotland said it was concerned by the surge in fake Labubu toys flooding the Scottish market.'These counterfeits are not only deceiving collectors and draining hard-earned money from families, but they are also leaving children heartbroken. We urge consumers to be vigilant, buy only from trusted retailers and report suspected fakes," Hazel Knowles, consumer project lead at the firm said. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. How Balrampur Chini, EID Parry are stirring up gains amid melting sugar stocks Are Sebi's MII evaluations driving real change or just more paperwork? Delhivery survived the Meesho curveball. Can it keep on delivering profits? Drones have become a winning strategy in war; can they be in investing? Stock Radar: Trent stock showing signs of bottoming out; stock still down over 25% from highs – what should investors do? Buy, Sell or Hold: Motilal Oswal initiates coverage on Inox Wind; Gabriel top pick for Elara Securities One simple reason to own & trade them: 5 large-caps from different sectors with upside potential of up to 46% Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
Time of India
05-07-2025
- Entertainment
- Time of India
Lafufus toy with fans; fake it till they almost make it
Academy Empower your mind, elevate your skills Labubus or Lafufus, what's in a name? as the Bard famously said. Well, for fans of the now iconic toy collectible – Labubu- there is a lot riding on the name as they battle a flood of counterfeits swamping the market. Pop Mart , the Beijing-headquartered retailer of the insanely viral Labubu dolls that were first created by the Hong Kong born, Belgium-based designer Kasing Lung for a story series The Monsters, has put in place a seemingly foolproof system to authenticate its products. But, to no avail according to Labubu fans who are discovering that the most alert among them are falling prey to duplicates that have now gained notoriety and recognition as – Lafufus. "I had picked up a Labubu for myself and had done an unboxing video which got a lot of views," one Chennai-based content creator who did not wish to be named told ET. The pint-sized dolls with pointy ears, large eyes, and a smile revealing nine teeth have grown into a global phenomenon since being launched in 'blind boxes' in 2019 after Pop Mart had licensed Lung's characters. These boxes sell for around $20–$30 but can go all the way up to even $300 and have turned into an addictive global phenomenon fuelled by celebrities flaunting their toys on tote bags. Last month, a life-sized Labubu doll sold for a record-breaking $150,000 (approximately Rs 1.28 crore) at a Beijing auction." I thought it would be fun to do a video with my whole family unboxing their Labubus, so I picked up a pack of six. We did an unboxing video and even authenticated the product," said the creator cited Pop Mart suggested, she scanned the QR code on the box which led her to the site where she had to key in the last four digits of the barcode to ensure that she had an original purchases passed the check and were proudly sported as her bag charms just like singer Rihanna and Bollywood persona Ananya Pandey. However, her joy was short lived because a keen-eyed collector spotted the fake as well as the dodgy credentials of the website providing fake replaced the fake – a Lafufu – on her bag with a true-blue Labubu. But remains unfazed.'Lafufus have their own fan base too!" she points Mart itself has tried to crack down on these fakes. Last month Chinese customs authorities reportedly seized more than 46,000 counterfeit Labubu toys, showing the surge in knockoffs. The Chinese state media issued warnings about a growing 'black market chain' exploiting consumers and infringing on intellectual property sales have fuelled Pop Mart's galloping growth since the company listed on the Hong Kong Stock Exchange in 2020. Founder Wang Ning is among China's top ten billionaires with a net worth of $22 though are a real threat as they retail for as less as $7.50 apiece and are seen as a way to keep up with the trend without spending too much money on the original.'70-80% Lafufus'"The fakes have become so good," Abbas Zaveri, founder of sneakers, streetwear and collectibles marketplace HypeFly said.'Things that customers could look out for is that the heads of the Lafufus tend to be very flimsy and the font on the box generally is embossed but the quality on the boxes of fakes tend to be sub-par."Another sure shot way of spotting a fake is the price. Anything that is being sold for under Rs 3,000 is likely not from Pop Mart. "Some Indian websites are selling a pack of six for Rs 9,000 whereas the original pack of six costs Rs 24,000 or more."Another reseller, Nikhil Jain who runs City Kicks India estimates that "about 70-80% of the dolls in the Indian market are Lafufus," he said.'The site URLs (that come up when the QR code is scanned) have subtle misspellings like "Pop Mari" or "Poap Mart" which are good tell-tale signs for this fraud. There are some marketplaces that have had to set up a team to authenticate their products because earlier they sold them as originals and customers figured out that they were being charged for an original but received a Lafufu instead."The fake trail is not limited to India alone, Scottish consumer watchdog Advice Direct Scotland said it was concerned by the surge in fake Labubu toys flooding the Scottish market.'These counterfeits are not only deceiving collectors and draining hard-earned money from families, but they are also leaving children heartbroken. We urge consumers to be vigilant, buy only from trusted retailers and report suspected fakes," Hazel Knowles, consumer project lead at the firm said.
