Labubu's Biggest Threat Is Not Wakuku or Lafufu

A question mark hangs over Pop Mart's relations with resellers.

- Shuli Ren

Labubu, an elf-like plush toy with pointy ears and nine serrated teeth, has become a global sensation, worn by celebrities including Rihanna and Dua Lipa. These dolls are sold out in stores from Singapore to London; a human-size version recently fetched a whopping US$150,000 (S$191,000) at an auction in Beijing. With all the social media buzz, it's worth asking if we are witnessing the rise of a new-age collectible, or whether Labubu is a mere fad destined to fade.

Investors certainly want to know. Pop Mart International Group, the Chinese manufacturer behind this trendy toy, has rallied 178 per cent in 2025. With a US$43 billion market cap, the company is worth more than twice as much as Sanrio and Mattel combined, owners of long-time favourites Hello Kitty and Barbie. In 2024, Pop Mart's revenue doubled to 13 billion yuan (S$2.3 billion), while its gross margin came in at an enviable 67 per cent, roughly twice as profitable as a generic toymaker. The company generated four billion yuan in operating profit, versus one billion yuan in 2023.

There are worries, however, that copycats might dent Labubu's brand image, which underpins Pop Mart's outsized profitability.