Labubu: Inside The $423 Million/Year Ugly Toy Craze

[00:00:00] Speaker 1: This is a Lububu, a little toy monster that's become both a fashion accessory and a collectible. Sold by Chinese toy company Popmart, these dolls brought in about $423 million in revenue in 2024, a 729% increase from the year prior. We've seen an incredible growth in revenue and interest across all of our IP. [00:00:27] Speaker 2: So Lububu certainly hit astronomical numbers last year. [00:00:31] Speaker 1: Lububus are part of a group of characters called the Monsters. Since 2019, hundreds of versions have been released. Some are sold to standalone toys, but they're mostly known for their blind boxes, meaning you don't know what you're getting until you open the box, like baseball or Pokemon cards. Each blind box costs about $30, but a life-size Lububu doll sold for over $170,000 at a Beijing auction in June. [00:00:55] Speaker 3: I had a friend who also is a major, major collector. And I was like, girl, how are you getting all of these? Because they're ugly, but they're cute, and I need them. I don't know why I need them, but I do. [00:01:06] Speaker 4: What got me interested in Lububus was pretty much social media. I kind of like fell into the hype. And also Lisa from Blackpink. [00:01:15] Speaker 5: And from there, we just saw it absolutely rocket and become huge overseas with her influence. And then we watched it translate back to North America, Europe, pretty much everywhere. Everyone's invested in this blind box extravaganza. [00:01:35] Speaker 1: Here's how Ugly Plush Dolls brought in $423 million in revenue for Pop Mart in 2024. Pop Mart started as a pop culture variety shop in Beijing, China, in 2010. [00:01:55] Speaker 2: After having a couple dozen stores in the marketplace, around 2016, the founder got very curious about licensing and decided that he wanted to approach it by working with an independent artist on a wholly new character. [00:02:10] Speaker 1: So Wang Ning, the founder and CEO, held an online survey, and the results led him to the company's first major character, Molly, created by artist Kenny Wong. [00:02:20] Speaker 2: Everything that we put out is in collaboration with the artist. We work closely with the artist on everything from product development to creative partnership. [00:02:29] Speaker 1: Lububu joined Pop Mart's lineup of toys in 2019. The character was created by artist Ka Sing Leung as part of a picture book called The Monsters Trilogy. [00:02:38] Speaker 5: These artists are from everywhere, so a lot of these figures that Pop Mart sells and distributes showcase different cultures. But the characters also have really great backstories and lore, and I think it's really easy for fans to invest in that and keep coming back to purchase more. [00:03:00] Speaker 4: I probably have maybe like eight or nine the boo-boos now. Kind of excessive. I've probably spent around $150 to $200 on my Lububu collection. [00:03:12] Speaker 3: I've probably spent four figures. [00:03:15] Speaker 1: Pop Mart went public on the Hong Kong Stock Exchange at a $6.9 billion valuation in 2020. Today, its market cap is $43.3 billion. To put that in perspective, toy giants Hasbro and Mattel's market caps are $10.6 billion and $6.4 billion, respectively. Pop Mart's share price has grown a whopping 190% in 2025. It's CEO is now the 10th richest man in China. The Monsters' sales made up 23% of Pop Mart's $1.8 billion revenue in 2024. That is more than twice its 2023 revenue. Pop Mart's profit margin was about 25%. [00:03:55] Speaker 5: By investing in these IP brand collaborations and maintaining still the artistry, the design that drew people to the figures in the first place. Pop Mart is expanding its reach, which is really setting itself apart from competitors. And they're welcoming anyone and everyone to their stores and their size, and they're saying, "We have something for you." [00:04:17] Speaker 1: Its North America sales accounted for only 6% of total revenue in 2024. About 61% came from mainland China, but that is quickly changing. Pop Mart says the revenue in the U.S. market in Q1 2025 already surpassed its entire fiscal year revenue of 2024. Pop Mart sells its products online, in brick-and-mortar stores, and RoboShops, or vending machines, across five continents. Most of the company's sales come from retail and online. [00:04:47] Speaker 2: So, here in the United States, we've opened our first store in 2022, and we're definitely seeing a lot of excitement within this market. [00:05:01] Speaker 1: With each Lububu blind box, there's a chance of seven different figures you can get, including one that is secret and rare. It becomes addictive. [00:05:10] Speaker 5: So, when you unbox one figure, say it's not the one that you specifically wanted, you're going to go back for more just to see. [00:05:18] Speaker 4: I have purchased multiple from one collection because I wanted certain colors, so I had to risk it. When I open it and it's a color that I want, I scream. And if it's not something that I want, I'm just like, "I need to go buy another one." They're dangerous. Very dangerous. [00:05:36] Speaker 1: Lububus are hard to get a hold of. Their limited supply has led to customer fights, and the company temporarily pulled them off shelves in the U.K. after brawls broke out. There is also a knockoff market selling fake Lububus known as "Lufufus." [00:05:52] Speaker 3: It's like World War IV in order to get one, but if you can do it, it's worth it. I have custom Lububus with wings on them. I have a Louis Vuitton Lububu. [00:06:02] Speaker 4: I spend my money a little recklessly when it comes to blind boxes now, and it's because of Lububus. [00:06:08] Speaker 1: For now, PopMart plans to continue expanding internationally and to keep growing its roster of artists. [00:06:19] Speaker 5: As long as PopMart is aware of how things are shifting in the toy industry and where our consumers are looking, they'll definitely be able to move forward. [00:06:30] Speaker 1: But there are risks ahead. After a call for stricter regulation on blind box toys in China, the company's share price dropped by more than 10 percent in the week leading up to June 19th, 2025. The Lububu knockoff market is also a potential threat. [00:06:46] Speaker 5: Despite these companies making figures of PopMart items at a lower cost and they're not well made, it's still a competitor because people are maybe don't know that they're buying a fake Lububu and maybe they're not aware of it. Or maybe they do know and they're OK with it. [00:07:06] Speaker 1: The pace at which social media dictates trends could be another threat to the company. [00:07:10] Speaker 5: I could see them keeping up this business model and keeping up this interest in their products for quite a long time. Of course, social media does what social media does. But the amount of people dedicated to finding and unboxing these characters and the amount of people that kind of center all of their content on it, it continuously adds up. [00:07:32] Speaker 2: PopMart has been around for 15 years and we are really building a brand for longevity as we continue to diversify our artists portfolio and diversify the ways that people can really interact with our characters. We will continue our mission to light up passion and bring joy for years to come. I'll see you next time. [00:08:02] Speaker ?: I'll see you next time.