As of 10:59 AM (Bangkok time) on Tuesday, the share price of Hong Kong-listed Pop Mart International Group Limited slumped by 5.20% to HK$189.50.
The prices of POPMART80 DR by KTB and POPMART23 DR by INVX in the Thai stock market also exhibited a downward trend during the morning session, sliding 3.75% and 5.61%, respectively.
This follows rising concerns over waning demand for the company’s flagship Labubu brand. Chinese media noted a significant drop in secondary market prices for the “Labubu The Monsters Have a Seat Vinyl Plush Series,” with averages falling from RMB1,478 to RMB632, and some items falling below their original price.
While the fourth-generation mini Labubu initially sold out and saw prices surge on second-hand markets, those prices soon retreated, with the hidden version dropping from RMB800 to RMB264 by month-end.
Shares of Pop Mart have reflected investor doubts about the company’s sustainability, with the downturn also following disappointing U.S. Black Friday results, drawing parallels to the 1990s Beanie Babies bubble.
Growth in North America slowed notably, with YipitData reporting a sequential decline to 424% as of December 6, which showed a more than half shortfall compared to the period ended September. S&P Global data showed short interest in Pop Mart tripled since November, reaching its highest level since August 2023.
Analysts express skepticism about the longevity of Labubu’s popularity and whether Pop Mart can maintain high growth next year. A sharp selloff in early December wiped out nearly 14% of market value over two days, bringing total losses since August to about $24 billion.
A Pop Mart spokesperson, however, noted that the company operates 60 U.S. stores and 100 roboshop kiosks, and plans to double these figures next year.
Despite current market sentiment, Pop Mart posted first-half 2025 revenue of 13.9 billion yuan, over five times its 2020 sales, with international growth cited as a primary driver. Quarterly sales through September grew by up to 250%.
The company is diversifying into entertainment, opening the Pop Land theme park in Beijing, planning a Labubu movie with Sony Pictures, developing an animated series, and launching the POPOP jewellery brand.
Nevertheless, Xiadong Bao, fund manager at Edmond de Rothschild Asset Management, sees the main issue as the potential decline in momentum for Labubu and Pop Mart’s leading intellectual properties. If sales of Labubu weaken, the company’s other character lines may not be able to offset the shortfall or sustain the strong growth that had previously supported Pop Mart’s valuation.
