Pop Mart has taken the world by storm with Labubu, achieving a new market value high.
This trendy toy dark horse has stood out in fierce competition with its unique model and innovative concepts—growing from an obscure little grocery store into a billion-level trendy culture giant, it can be described as legendary.
In 2024, Pop Mart's stock price skyrocketed from 80 yuan at the beginning of the year to 230 yuan, with a market value exceeding 300 billion Hong Kong dollars, primarily due to Labubu's global popularity. Labubu, created by Hong Kong artist Long Jia Sheng, was exclusively licensed to Pop Mart in 2019 and quickly gained fame through blind boxes. Notably, Blackpink member Lisa's social media posts featuring Labubu sparked a buying frenzy among fans, leading to booming sales at global stores, skyrocketing second-hand prices, and even causing chaos in overseas purchases.
Labubu's 'ugly yet cute' quirky image resonates with the Z generation's preference for personalization and self-expression in consumption. Similar to the image of Nezha in 'Nezha: Birth of the Demon Child', which attracts young people's attention due to its unique style, this trend has driven related stock prices up. As Chinese trendy culture breaks through traditional aesthetics, showcasing diverse personalities, Pop Mart and Light Media have become representatives of trendsetting, and more trendy toy dark horses may emerge in the future.
Labubu's third generation of rubber plush series is selling explosively online and offline, with scalpers hoarding stocks and prices soaring to 1300 yuan, while hidden variants exceed 2600 yuan, leading to a supply shortage that has even spawned high-priced counterfeits. Behind the craze, consumers frequently complain about product quality control issues, with defects like paint peeling, seams opening, and shedding hair triggering a flood of complaints. Pop Mart urgently needs to improve quality assurance for long-term reputation.
In 2024, Pop Mart achieved a revenue of 13.04 billion yuan, a year-on-year increase of 107%; net profit was 3.4 billion yuan, with a growth rate of 186%, far exceeding the performance of Kweichow Moutai during the same period. The stock price rose from 20 Hong Kong dollars in 2020 to 225 Hong Kong dollars, with a market value breaking 300 billion Hong Kong dollars. However, executives and early investors have been reducing their holdings at high prices, cashing out over 5 billion Hong Kong dollars, leading to jokes about 'trendy toys are not a necessity; cashing out is a necessity.'
Pop Mart has made a fortune with its explosive trendy toys, but whether it can maintain its lead in the future will depend on quality and innovation.
On May 27, the trendy toy brand Pop Mart (9992.HK) saw its stock price briefly surge to 233.4 Hong Kong dollars. Its popular IP Labubu launched the Meme coin $LABUBU on the Solana chain, which also performed remarkably, rising nearly 59% within 24 hours, with a market value exceeding 45 million.
BLACKPINK member Lisa has turned Labubu into a fashionable item, with trends rapidly spreading from Asia to Europe and America. Exposure from American superstar Rihanna and fashion blogger Bryanboy has allowed Labubu to successfully enter the European and American markets. The celebrity effect has driven Pop Mart's international business to grow rapidly; in the first quarter of this year, revenues from the Americas and Europe surged by 900% and 600%, respectively. The third generation of the Labubu series is selling well globally, with fans lining up to buy; in the UK, sales at 16 stores were paused due to queue conflicts, expected to resume in June.
$LABUBU's price has exceeded 0.044 USD, with a market value of over 40 million USD, boosted by several crypto KOLs enhancing community engagement. However, caution is needed regarding unofficially licensed Meme coins for $LABUBU, as price fluctuations can be severe and investment risks are high.
Labubu's meteoric rise not only represents the rise of Z generation culture but also reflects the capital market's pursuit of young consumer power.
Can it become the next Hello Kitty? Time will provide the answer.