Labubu craze accelerates Pop Mart's global ambitions

Pop Mart International Group Ltd, a China-based trendy collectible toy maker, is banking on the new global craze surrounding its plush product series of Labubu figures, the company's beloved intellectual property under The Monsters series.

The new limited collection has driven significant consumer engagement, with long lines at retail locations in major cities around the world, including Los Angeles and London.

The fervor surrounding Labubu has also translated into digital success. On April 25, Pop Mart's official app soared 114 spots in the US App Store, achieving fourth place in the overall category and top spot in shopping, according to the company.

Wang Ning, Pop Mart's chairman and CEO, said in its 2024 annual report that Labubu's remarkable success last year propelled The Monsters' revenue to 3 billion yuan ($415.2 million), a 726.6 percent increase compared to the previous year.

The franchise now constitutes 23.3 percent of the company's total revenue, making it Pop Mart's largest IP.

This sentiment reflects Pop Mart's strategic focus on emotional value, collectibility and social attributes that resonate with a global audience.

Cecilia Li, a 22-year-old Chinese student in New York, said Pop Mart — especially Labubu — is really taking off in the United States.

"I've seen those little Labubu figures hanging off bags on the subway. Even Providence, Rhode Island, which is a small city near Boston, is getting a Pop Mart store!" she said.

She attributed the rising popularity of the collectible figures to influencer culture. "Labubu keeps popping up on bags carried by celebrities, such as Rihanna, and fashion influencers — it feels like a very organic kind of popularity. It's that kind of 'grassroots exposure' you often see on RedNote or TikTok," she said.

A big part of the appeal is Labubu's look, added Li. "It's that 'ugly-cute' meets creepy aesthetic, with a bit of a gothic vibe," she said. "It's not traditionally cute, but that's exactly why it resonates with trendsetters here. Compared to something like Molly, Labubu just fits the US consumers' taste better."

The company made headlines with its first quarter 2025 financial report, released on April 22, posting a year-on-year revenue growth of 165-170 percent.

The surge has propelled its stock price to new heights, climbing 12.5 percent beyond its previous all-time high within a week of the announcement.

Revenue breakdown shows that in the first quarter, while domestic sales in China grew by 95-100 percent, international sales soared by 475-480 percent, with North America experiencing an eye-popping 895-900 percent increase.

During a recent conference call, Wang said he is optimistic about their market in North America reaching 2.5 billion yuan in revenue, matching the group's total in 2020.

The company forecasts its revenue in 2025 to grow more than 50 percent year-on-year, exceeding 20 billion yuan. Its overseas revenue is expected to grow 100 percent this year to reach more than 10 billion yuan.

As the company aligns its global strategy to support this growth, it announced a significant reorganization in mid-April.

The establishment of regional headquarters in China, the Americas, Asia-Pacific and Europe signals Pop Mart's commitment to enhancing its global presence.

Justin Moon, the new co-chief operating officer, will oversee operations in Asia-Pacific and Europe.

The price of Labubu products has risen from $21.99 to $27.99 — a nearly 30 percent increase, while other products, including the upcoming "Gift For You" series blind boxes, are also seeing price hikes, moving from the previously standard $16.99 to $20.99.

Despite the price increases, consumer demand remains robust. Resale prices for Labubu collectibles are already soaring in the secondary market, ranging from $90 to $400.