The market for Labubu dolls, quirky collectibles sold in mystery 'blind boxes', is not what it once was. Pop Mart, the Beijing-based company behind these toys, has seen global sales take a hit. Revenues have plunged by up to 50% in the third quarter compared to the same period last year. The decline is particularly stark outside mainland China. In the US, sales have nosedived by at least 70%.
Labubu dolls launched in 2019 and quickly became a sensation. Fans were willing to pay sky-high prices on the resale market just to complete their collections. The craze was so intense that a superfan from North Carolina, known as Ensito, left his tech job in 2024 to create Labubu content full-time. Ensito spent more than $50,000 on a collection of over 400 Labubus, a figure he now finds a bit embarrassing. His social media posts about the dolls once went viral, but they've seen a steep drop in engagement. He's now shifting focus to other trends like Hello Kitty and squishies.
Pop Mart's strategy of selling toys in blind boxes, which evokes childhood nostalgia like opening gifts, initially helped the company outpace US toy giants like Hasbro and Mattel in market value. The exclusivity of certain Labubu dolls, which were often hard to find, drove the frenzy. Fans would buy blind boxes repeatedly to get the specific versions they wanted. But as production increased to meet demand, that sense of exclusivity began to disappear, says Ashley Dudarenok of China research firm ChoZan.
Despite the downturn, Pop Mart is still one of the world's most valuable toymakers with a market value near $24 billion. The company has expanded its reach with 500 shops in over 30 countries and 2,000 vending machines worldwide. However, its shares have dropped by more than 50% from last year's peak, raising investor concerns about sustainable growth. Marketing lecturer Samer El Hajjar from the National University of Singapore suggests Pop Mart's global success may have been a short-lived viral moment rather than a sign of lasting customer loyalty.
As Labubu's popularity fades, other blind box collectibles are gaining ground. Items like Sonny Angels, Smiski figurines, and blind-boxed Disney and Marvel characters sold by Miniso are flying off the shelves. Miniso, based in Guangzhou, has over 8,000 shops globally. Vincent Huang, a Miniso executive, notes that consumers care more about the shopping experience, design, and value for money than brand origin.
Pop Mart is trying to diversify its offerings and retain interest by investing in new ventures, such as a theme park in Beijing and a planned Labubu film. However, experts like Dudarenok argue that Pop Mart faces challenges in creating characters with staying power, unlike brands like Hello Kitty, which has posted record earnings.
Collectors like Ensito are now questioning the value of heavily investing in trends that might not last. After two years of chasing Labubus, Melbourne-based content creator Lawrence Yu plans to be more selective in his purchases. His Labubu-related content, which once attracted up to a million views, has seen a decline in interest. Similarly, Clara Barbero from Canada describes Labubus as a 'dead trend' but remains open to interesting releases.
Still, some collectors remain devoted. Hedy Khaled from Liverpool, who owns 70 Pop Mart figurines, argues that true fans are different from trend-chasers, suggesting that falling sales don't necessarily indicate a loss of appeal. For Katelynn Carlson, the joy of collecting Labubus lies in the happiness they bring, not their viral status. She continues to be excited about new releases, such as the recent cat-themed Labubu series.
