It seems China’s pop culture phenomenon, POP MART, has captured the attention of the global market. “I used to joke that my popularity in Thailand was like Steve Jobs’ arrival in China,” quipped POP MART CEO Wang Ning. Now, his reach may extend to Europe and the Americas, mirroring the success seen in Southeast Asia. The LABUBU, a playful designer toy, has resurfaced, igniting a fervor that rivals luxury goods. Even Hermès is now swept along in the LABUBU’s wake.
The frenzy is over LABUBU 3.0, a brightly colored tie-dyed figurine, which has become a sensation.
The brand’s success is especially apparent after the April launch of new LABUBU products. According to TikTok data, POP MART’s official account generated $6-7 million in sales within the US market, topping the list for that month. Their official app also secured the number one spot on the US Apple App Store’s shopping chart. Furthermore, one live stream within the app attracted a massive 120,000 concurrent viewers eager to purchase the merchandise.
The demand for LABUBU has reached a fever pitch. In the UK, scuffles have even broken out over the toy, leading to a temporary halt in sales.
American consumers have been rising at 3 AM to secure a purchase. This level of fervor translates to an almost sacred protection of the toy, with buyers expressing fears of losing it.
How did LABUBU gain such widespread adoption? The trend appears to be similar to the one experienced in Thailand: celebrity endorsements. Rihanna was seen sporting a pink LABUBU on her LV handbag, which sparked a trend that has been adopted by artists like Dua Lipa, the Kardashians, and even David Beckham.
The association is so strong that many now consider LABUBU a status symbol to accessorize a Hermès bag, a combination that has become a symbol of current fashion trends.
Some even joke that Hermès is now partnering with POP MART, as the two seemingly go hand in hand.
The brand’s appeal goes beyond mere association with existing luxury brands. People are spending significant sums on a LABUBU’s accessories.
Social media is full of people claiming that they had to spend an extra $30,000 to attain a LABUBU. This practice of needing to spend more to be able to attain a limited-edition item is typical for luxury brands.
The LABUBU craze has also sparked a unique trend: customization. American consumers are heavily invested in creating their own individualized LABUBU dolls.
Popular trends on various social media platforms include giving the dolls a tan, applying nail rhinestones, adding heavy makeup, and creating custom outfits.
One striking trend, according to the source of this article, is the LABUBU butt enhancement surgery.
A step-by-step surgical guide has been created to show how to precisely open the doll’s rear, insert filler, and elegantly sew up the wound.
This guide is incredibly popular, with thousands of shares.
This craze has created multiple secondary industries. Custom doll clothing businesses and counterfeit LABUBU factories are booming due to the high demand.
Those who desire these toys are sometimes exposed to poor imitations coming from counterfeiters. These knockoffs, which are often obviously fake, are humorously called “Lafufu”.
Some “Lafufu” toys are so poorly manufactured that people don’t even bother trying to determine whether they are real or fake.
The trend is undeniably impacting POP MART’s bottom line. North America is now POP MART’s second largest overseas market, just behind Southeast Asia. According to a recent earnings call, POP MART’s revenue in the US market for Q1 of this year equaled that of the entire year of 2024.
The company’s revenue growth in the Americas and Europe increased by 895-900% and 600-605%, respectively. POP MART says that they are struggling to keep up with demand.
This success has strengthened POP MART’s ties to fashion and luxury brands.
The brand is a bestseller at luxury department store Harrods, is holding signing events in Europe, and is releasing limited-edition collaborations. The world’s leading fashion brands are also looking to collaborate. One such partnership is with the Japanese designer, Comme des Garçons’s buying shop. Morgan Stanley’s research reports that the search popularity of LABUBU has surpassed Hello Kitty. It is estimated that the overseas sales growth rate for this year will reach 152%.
POP MART’s overseas market president, Wende Yi, reports that in the past, when they wanted to collaborate with overseas department stores, the stores would only let them in on the fifth floor, a section reserved for children’s toy brands. Now, POP MART has moved out of the fifth floor. In the first floor, the toy company now has retail space with luxury brands, and even entire buildings are being dedicated its brand.
Despite the rapid growth rate of POP MART’s revenue, there are concerns.
Previous investments in the POP MART amusement park project seem to be stuck in the phase of fan check-ins. Fans have lamented the lack of venues and projects. There’s a lack of development concerning the IP depth.
An interview with CEO Wang Ning might provide some answers. Wang seems to be focused on the issues arising from an overreliance on a single IP.
In 2015, one-third of POP MART’s total income came from Japanese toy distributor Dreams’ Sonny Angel dolls. Facing such dependence, POP MART—then merely a distributor—had no say in the decisions. Even the locations of its stores and exhibitions had to be approved by Dreams.
Wang began deciding that he wanted to be the one signing IP artists and buying them.
Moreover, POP MART limits itself to only developing around 100 SKUs per year, which means carefully curating its product lines. This strategy is different from other brands. For example, MINISO pursues over 100 SKUs per week. This brand aims to constantly change products and launch new ones.
For example, multiple Harry Potter-themed goods have been released by MINISO this year. For LABUBU, even with the enormous popularity, only around 30 series have been released.
Although creating fewer SKUs can help staff to focus on polishing products, this can cause a slower reaction to potential market movements.
POP MART has to create the most value using the least number of SKUs. Whether a toy will gain rapid popularity comes down to luck.
LABUBU launched in 2016, but it was a rather unknown product.
The source of the article still advises caution.
Just like CEO Wang said: Businesses are neither as incredible, nor as terrible, as people may anticipate.
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