The once booming resale market for Labubu dolls, the plush collectibles from Pop Mart’s The Monsters series, is now losing steam across global markets after enjoying massive popularity earlier this year.
At its peak in the summer, the Labubu craze was so intense that it contributed to over a third of Pop Mart’s total revenue for the first half of the year. The surge was largely driven by the toy’s celebrity appeal, with international stars like Blackpink’s Lisa, Rihanna, and David Beckham seen flaunting their own Labubu dolls.
However, the frenzy appears to be cooling. Many resellers who once profited from the hype are now finding it hard to make money. “Prices in Thailand are crashing fast,” said 22-year-old Kasidit Teerawiboosin, a long-time collector who started flipping Pop Mart toys earlier this year.
Data from Qiandao, a major Chinese resale platform, shows that the price of the Labubu “Luck” edition, released in April, peaked at over 500 yuan (around $70) in June but has since plummeted to nearly one-fifth of that amount. Other variants have also dropped below their retail prices, signaling that the secondary market’s excitement has sharply declined.
The trend has already impacted investor confidence. Pop Mart’s stock has fallen roughly 25 percent since August as traders link the price slump to waning demand. Yet, company filings paint a more optimistic picture, showing that revenue between July and September grew by 250 percent, exceeding the 204 percent increase from the first half of the year.
Analysts, however, suggest that oversupply may be the real issue, not a lack of interest. Pop Mart ramped up production significantly this year, reportedly increasing plush toy output, including Labubu dolls, by tenfold to around 30 million units each month. Executive director and co-COO Sid Si compared the situation to concert tickets, explaining that while fans often pay inflated prices due to limited seats, Pop Mart can counteract demand pressure by producing more toys.
Morningstar analyst Jeff Zhang added that while the drop in resale prices could indicate market saturation, it also reflects a growing supply as resellers offload their stock. He cautioned that investors may now view Pop Mart’s earnings outlook with added risk if the current growth wave begins to slow.
Meanwhile, Morgan Stanley analysts noted that second-hand prices don’t always reveal the full picture of true demand and supply. They believe Pop Mart’s future success lies in diversifying with new characters like Twinkle Twinkle and further expanding internationally, areas that could help the brand maintain its momentum even as the Labubu craze cools off.
