Pop Mart's Profits Surge Nearly 400% as Labubu Craze Goes Global

Chinese Toymaker Outpaces Industry Giants with Booming International Demand

Explosive Growth for Pop Mart

Pop Mart, the Chinese toymaker behind the wildly popular “Labubu” character, has reported a staggering 400% increase in net profits for the first half of 2025. The brand's "ugly-cute" aesthetic, driven by celebrity endorsements and social media buzz, has made it one of the most sought-after collectible toy companies globally.

• Sales surged to 13.9 billion yuan (£1.4 billion).
• Net profit reached 4.6 billion yuan (£474 million).
• Pop Mart shares have soared over 230% since January 2025.

This dramatic surge has made Pop Mart more valuable than industry leaders Mattel, Hasbro, and Sanrio combined.

Celebrity Endorsements and Global Appeal

Labubu, created by artist Kasing Lung as part of “The Monsters” series, has gained fans among global celebrities such as Rihanna, David Beckham, and Paris Hilton. This has led to sold-out releases across the world, with some rare editions fetching astonishing sums.

• A collector in Beijing paid £124,000 for a human-sized Labubu in June.
• Pop Mart’s UK presence includes stores in London and Manchester, plus pop-ups in Harrods and Hamleys.
• UK fans can also purchase toys from “Robo Shops” (vending machines) and online.

Global Expansion Strategy

Pop Mart’s CEO, Wang Ning, has ambitious goals:

• Target revenue for 2025: 20 billion yuan (£2.06 billion).
• Stretch target: 30 billion yuan (£3.10 billion).
• Expansion plans include new stores in North America, Asia Pacific, Europe, and the Middle East.

In the US alone, where Pop Mart already operates 40 stores, the company plans to open 10 additional locations by year-end, with more rapid expansion to follow.

Business Model: Blind Box Success

A key driver of Pop Mart’s success is its “blind box” model—toys are sold in sealed packaging, leaving buyers unaware of which version they’re purchasing. This taps into:

• The psychology of surprise and collectability.
• Repeat purchases to complete full collections.
• Strong engagement from young adult collectors as well as children.

Popular series such as Molly, Crybaby, and The Monsters each generated over 1 billion yuan in revenue this year.

Safety Concerns Around Counterfeits

The popularity of Labubu has sparked a wave of counterfeit products. UK Trading Standards recently issued warnings:

• Thousands of fake dolls have been seized across the UK.
• Many fakes may pose risks including choking hazards and toxic materials.
• Over 2,000 unsafe toys were confiscated from just 13 shops in North Tyneside alone.

Parents and collectors are urged to purchase from verified retailers.

What Could This Mean for Investors?

Pop Mart is currently riding high, with ambitious expansion plans and strong product appeal. However, some analysts caution that the valuation may already be overextended:

"We expect more restocking and new editions to drive growth, but shares may be overpriced given the high business risk,"
– Jeff Zhang, Morningstar analyst

Despite the bullish sentiment, high-growth brands like Pop Mart can face volatility due to:

• Shifting consumer trends
• Competitive threats from established players
• Overreliance on a single product line or style

Conclusion: From Toys to Global Titan?

Pop Mart’s meteoric rise highlights how creative branding, collectability, and savvy global expansion can transform a niche product into a global phenomenon. While the share price may face corrections in the short term, long-term potential remains strong—especially if the company successfully expands into media, licensing, and theme parks.

For investors, Pop Mart could represent an early-stage opportunity akin to Funko or even Disney. But careful consideration is advised, especially with such rapid valuation growth and increased expectations.

Sources: (Skymoney.com, Reuters.com)