Pop Mart, a Chinese company recognized for its Labubu dolls, has reported a significant increase in sales following the introduction of mini versions of these monster-themed toys in August. The firm’s global revenue for the third quarter ended in September surged approximately 250% compared to the same period last year. This growth was particularly driven by sales outside China, with revenue in the United States rising over 1,200% and more than 700% in Europe.
These sales figures continue a trend of strong performance for Pop Mart, which has seen its shares rise by over 5.5% in Hong Kong, resulting in a market capitalization of around $45.5 billion (£34 billion). Pop Mart is known for its “blind box” toy sales, a packaging method that hides the product until opened. This marketing strategy has faced criticism for potentially promoting compulsive buying behaviors.
Collectors show a strong interest in Labubu, characterized as elf-like creatures with jagged teeth, leading to long queues at retail locations globally. The popularity of Labubu has been bolstered by celebrity endorsements, including figures such as Kim Kardashian and Lisa from the K-pop group Blackpink. Additionally, collaborations with well-known brands like Coca-Cola and the manga series One Piece have further increased Labubu’s visibility.
Since its launch in 2019, Labubu dolls have established Pop Mart as a significant player in retail, with operations extending to over 2,000 vending machines and stores worldwide. The company went public on the Hong Kong Stock Exchange in 2020, and its share price has increased by more than 280% since then. However, recent concerns from financial analysts, including those from JPMorgan, suggest that the company may be overvalued and question its ability to maintain the toys’ popularity moving forward.
Source: https://www.bbc.com/news/articles/cg51d0qql24o?at_medium=RSS&at_campaign=rss