Pop Mart’s Labubu: A Phenomenon in Flux
Introduction
In recent months, the fervor surrounding Labubu, the quirky figurine from Hong Kong-based Pop Mart, has shown signs of cooling. However, this shift may not be detrimental to the company, which has seen remarkable growth and expansion in various markets. As interest wanes, Pop Mart continues to thrive, bolstered by impressive financial results and strategic initiatives.
Declining Interest, Yet Strong Performance
According to Google Trends, searches for Labubu peaked between July 13 and July 19, 2025, before experiencing a gradual decline. Despite this downturn, the volume of searches at the end of August remained twelve times higher than the same period last year. This indicates that while the initial excitement may be fading, Labubu has firmly established itself in the public consciousness.
The character has garnered significant attention through celebrity endorsements, including Naomi Osaka’s performance at the U.S. Open and custom designs by Lady Gaga and Lisa. Additionally, Labubu has generated over 2.8 million user-generated posts on TikTok, solidifying its status as a cultural icon in 2025.
The Dual Nature of Collecting
Labubu’s appeal is multifaceted. Some view it as a luxurious collectible, while others criticize it as a symbol of consumerism and addiction, particularly due to its blind box sales model. This model, where customers receive random figures from a themed series, has drawn comparisons to gambling, as collectors chase rare versions of the figurine.
Despite these criticisms, investors remain optimistic about Pop Mart’s future. The company’s share price has more than tripled year-over-year, reaching 320 Hong Kong dollars by the end of August. Goldman Sachs recently raised its target price to 350 Hong Kong dollars per share, citing a staggering 204.4% increase in revenue to $1.95 billion and a 385.6% surge in net profit to $659 million in the first half of 2025.
Global Expansion and Retail Growth
Pop Mart’s growth has been particularly pronounced in the U.S. and Europe, with revenue increases of 1,142.3% and 729.2%, respectively. The Asia-Pacific region, which includes markets like Singapore, Malaysia, and Thailand, also saw a robust 257.8% growth. Even in its core market of mainland China, the company reported a substantial 135.2% increase.
Since its listing in Hong Kong in 2020, Pop Mart has aggressively pursued global expansion. As of June 30, 2025, the company operated 571 stores and 2,597 roboshops across 18 countries. Notably, in August, Pop Mart opened its largest store to date in Bangkok’s Iconsiam luxury mall, featuring a café and drawing long lines of eager customers. The company also made headlines with its first store in Germany, located in Berlin’s Alexa shopping center, where fans queued for exclusive Labubu drops.
E-commerce and Digital Sales Surge
Online sales channels have flourished, particularly on TikTok Shop U.S., where Pop Mart’s sales skyrocketed by 1,828% from June 2024 to June 2025. The company accounted for 0.55% of all TikTok Shop U.S. sales by April 2025, showcasing its growing digital footprint.
During an earnings call, Pop Mart’s founder, Wang Ning, expressed confidence in meeting the company’s revenue target of 20 billion yuan (approximately $2.78 billion) for 2025. He also indicated that sales from North America and Asia-Pacific would match those from China in 2024, with plans for rapid store openings in the U.S. and potential expansion into emerging markets in the Middle East and Central Europe.
Diversification and New IP Development
While Labubu remains the flagship character, Pop Mart is actively cultivating a diverse portfolio of intellectual properties (IPs). The Monsters series, which includes Labubu, Zimomo, Spooky, Tycoco, and Pato, generated 4.81 billion renminbi (around $673 million) in the first half of 2025, marking a 668% increase year-over-year.
The success of the Monsters range can be attributed to the release of new series, such as the vinyl plush “Big Into Energy” and the “Wacky Mart” blind box figures. Wang revealed that Pop Mart sells approximately 10 million Labubu figures each month, indicating robust demand.
Collaborations and Brand Partnerships
Pop Mart has also attracted interest from major film studios and luxury brands for collaborations. However, the company is selective, aiming to protect Labubu’s long-term value by partnering only with top-tier brands. Collaborations have included partnerships with Vans, Sacai, and Uniqlo, among others.
In a recent collaboration, the LVMH-owned Moynat unveiled a collection featuring Labubu and other characters on handbags and leather goods. This strategic approach not only enhances Labubu’s brand image but also diversifies Pop Mart’s revenue streams.
Conclusion
As Labubu’s initial hype begins to wane, Pop Mart is well-positioned to navigate this transition. The company’s impressive financial performance, global expansion, and strategic partnerships indicate a robust future. By diversifying its portfolio and focusing on sustainable growth, Pop Mart aims to maintain its status as a leader in the collectible toy market. While the Labubu phenomenon may be evolving, the brand’s legacy is likely to endure, supported by a strong foundation and a commitment to innovation.
