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Labubu hype seemed unstoppable, now the fluffy monster mania is dying
Labubu dolls helped make Pop Mart an international toy giant, but falling sales and fading online interest suggest the craze may be losing momentum. The shift matters because investors are questioning whether the company can turn one viral hit into lasting customer loyalty.
Pop Mart said global sales in the three months to the end of September fell by as much as 50% year on year, with US revenue down at least 70%. Its shares have dropped more than 50% from last year’s peak, though the company is still valued at nearly $24bn and operates 500 shops across more than 30 countries. Fans and analysts say wider availability has weakened the dolls’ former sense of exclusivity, while other blind-box toys are gaining popularity.
In short
- Labubu sales fell sharply in the latest quarter.
- US revenue was down at least 70%.
- Fans say the dolls feel less exclusive.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The sales declines and retreat in online interest suggest that Labubu’s viral appeal may be fading, especially as wider availability reduces the scarcity that helped make the dolls exciting. Pop Mart’s challenge is to show that customers will stay engaged with its other characters and products once the initial craze passes.
The case against
A sharp drop after exceptional growth does not by itself show that Labubu mania is over: Pop Mart remains a large, highly valued company with hundreds of shops worldwide, and the figures cover one quarter. Broader access could also help turn a scarce viral product into a lasting brand, while new toys and characters give the company ways to renew interest.
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