Little Labubu dolls spark 250% surge in Pop Mart sales
What's the story
Pop Mart, the Chinese company behind the popular Labubu dolls, has reported a massive surge in sales after launching mini versions of its monster-themed toys. The company's global revenue for the three months ending September shot up by some 250% compared to last year. The growth was mainly driven by international sales, with revenue from America increasing by over 1,200% and Europe witnessing a rise of over 700%.
Marketing approach
The rise of Labubu
Pop Mart is famous for selling its toys in "blind boxes," a packaging technique that keeps the content hidden until opened. Although this marketing strategy has been criticized for promoting gambling-like behavior and compulsive buying, it hasn't stopped collectors from going crazy over Labubus. These fictional elf-like creatures with jagged teeth have created long queues at stores worldwide.
Endorsements impact
Celebrity endorsements and strategic partnerships
The rise of Labubu, especially in the US, can be attributed to celebrity endorsements from stars like Kim Kardashian and Lisa of the K-pop group Blackpink. Strategic partnerships with global brands such as Coca-Cola and popular manga series One Piece have also contributed to Labubu's worldwide recognition. Since its launch in 2019, these strategies have helped Pop Mart become a major player in the retail industry with over 2,000 vending machines and stores across the globe.
Stock market
Stock performance and challenges
Pop Mart went public on the Hong Kong Stock Exchange in 2020, and its share price has increased by over 280% since then. However, concerns from investment bank JPMorgan about the company's valuation and the sustainability of its toy popularity have caused a recent dip in shares. Despite these challenges, Pop Mart's strong sales figures indicate continued consumer interest in their unique product offerings.