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Pop Mart, the Chinese toy company behind the wildly popular Labubu dolls, has forecasted an impressive financial performance for the first half of this year. The Beijing-based firm expects its profits to increase by at least 350% during this period, as revenues have more than tripled. With a market capitalization exceeding $40 billion, Pop Mart’s stock price has soared thanks to the massive popularity of the Labubu doll craze and the company’s strategic response to the demand.

Labubu Dolls: A Global Phenomenon

The Labubu dolls, fictional elf-like creatures characterized by a row of jagged teeth, have become a global sensation. These toys have been flying off the shelves worldwide, creating long queues in stores. Pop Mart’s share price, which closed at 89.65 yuan on December 31 last year, is currently trading at 266 yuan, marking a multibagger gain of 197%. The Chinese retail stock has remained in positive territory for six consecutive months, reflecting strong investor confidence.

Since their launch in 2019, Labubu dolls have propelled Pop Mart into a major retail industry player. The company now operates over 2,000 vending machines and stores worldwide. After listing on the Hong Kong Stock Exchange in 2020, Pop Mart’s market valuation has surged nearly 600% over the past year, underlining the company’s rapid growth.

Celebrity Endorsements Fueling Demand

Labubu’s quirky design gained a significant boost when K-pop star Lisa from Blackpink was seen with a Labubu doll and praised it in interviews and social media posts. This celebrity endorsement ignited global demand, leading to long lines at Pop Mart stores and rapid online sellouts. In May, British football star David Beckham further fueled the craze by sharing a photo on Instagram featuring his Labubu attached to a bag. The dolls are sold in blind boxes, where buyers do not know the exact design until they open the packaging. The starting price for Labubu blind box toys in Pop Mart stores is around 50 yuan.

Strong Financial Results and Intellectual Property Success

The Labubu doll craze is reflected in Pop Mart’s financial results. Net income for the Beijing-based company rose 188% to 3.1 billion yuan ($427 million) in 2024, compared to 1.1 billion yuan the previous year, surpassing analyst estimates of 2.71 billion yuan, according to Bloomberg. Full-year sales more than doubled to 13 billion yuan. The performance of Labubu was described as “particularly impressive,” with thirteen of the company’s intellectual property products generating sales exceeding 100 million yuan.

Challenges from Counterfeits and Continued Success

The immense popularity of Labubu dolls has also triggered a surge in counterfeit products, often called Lafufu dolls. In June, Chinese authorities seized over 46,000 fake Labubu toys as part of efforts to combat the growing black market. Despite these challenges, Pop Mart continues to enjoy unprecedented success with its viral toy line, maintaining strong momentum in both sales and brand influence.