Labubu doll maker sees 350% profit jump in H1 2025
What's the story
Pop Mart, the Chinese toy company behind the popular Labubu dolls, has predicted an impressive financial performance for the first half of this year. The Beijing-based firm expects its profits to jump by at least 350% during this period as revenues have more than tripled. The company's market capitalization is more than $40 billion.
Market impact
A look at the Labubu dolls
The Labubu dolls, which are fictional elf-like creatures with a row of jagged teeth, have become a global phenomenon. These toys have been flying off the shelves and created long queues in shops around the world.
Business growth
Rise of the retail giant
Since their launch in 2019, Labubu dolls have helped Pop Mart become a major player in the retail industry. The company now operates more than 2,000 vending machines and stores worldwide. After listing on the Hong Kong Stock Exchange in 2020, Pop Mart's market valuation has skyrocketed, with an increase of nearly 600% over the past year.
Sales surge
International sales boost
International sales accounted for nearly 40% of Pop Mart's total revenue in 2024. The dolls have become especially popular in the US, thanks to celebrity endorsements from Kim Kardashian and Lisa from K-pop group Blackpink. Partnerships with global brands like Coca-Cola and manga franchise One Piece have also contributed to Labubu's worldwide fame.
Market dynamics
Resale market for Labubu dolls
In June, Labubu's sales in the US surged by 5,000% year-on-year, according to equity research firm M Science. The buying frenzy has created a thriving resale market where the dolls, originally priced at around $10, can sell for hundreds of dollars. A human-sized Labubu even sold for $150,000 at an auction in Beijing last month.
Fake
Rise of counterfeit toys
The immense popularity of Labubu dolls has also led to a surge in counterfeits, often called Lafufu dolls. In June, Chinese authorities seized over 46,000 fake Labubu toys as part of their efforts to combat the growing black market for these popular dolls. Despite such challenges, Pop Mart continues to enjoy unprecedented success with its viral toy line.