Pop Mart revenue soars 204% as Labubu dolls go global

Pop Mart International reported explosive first-half growth with revenue climbing 204% to 13.88 billion yuan ($1.93 billion) and net profit soaring nearly five-fold to 4.57 billion yuan as global demand for Labubu dolls continued driving expansionmorningstar.
Overseas sales from Hong Kong, Macau, Taiwan and other international markets increased 440%, now accounting for 40% of total revenue, while domestic China sales rose 135%morningstar.
The Labubu craze gained global momentum after K-pop star Lisa of Blackpink showcased the "ugly-cute" dolls on social media, followed by celebrity endorsements from Rihanna, Dua Lipa, and David Beckhammorningstar+1.
Pop Mart's TikTok Shop sales in the US surged 1,000% year-over-year as of May, with the company's "blind box" sales model creating a secondary market where rare editions sell for over $1,000modernretail+1.
The Beijing-based company's gross profit margin rose to 70.3% from 64.0% a year ago, with its Hong Kong-listed shares surging 588% over the past year to reach a $40 billion valuationmorningstar+1.

Chinese toymaker Pop Mart reported explosive growth on Tuesday, with first-half revenue climbing 204 percent to 13.88 billion yuan ($1.93 billion) as global demand for its Labubu dolls continued to drive the company's remarkable expansion. Net profit soared nearly five-fold to 4.57 billion yuan, according to Morningstar.morningstar

The Beijing-based company's performance underscores how the viral phenomenon surrounding its "ugly-cute" Labubu collectibles has transformed Pop Mart from a niche Chinese retailer into a global powerhouse. Sales from Hong Kong, Macau, Taiwan and other overseas markets increased 440 percent, now accounting for 40 percent of total revenue, while domestic Chinese sales rose 135 percent.morningstar

Celebrity-Fueled Global Expansion

The Labubu craze gained momentum in 2024 when K-pop star Lisa of Blackpink showcased the dolls on social media, according to multiple reports. Since then, celebrities including Rihanna, Dua Lipa, and David Beckham have been spotted carrying the collectibles as luxury bag charms. Lisa has remained the character's most prominent ambassador, recently wearing a custom pink Labubu outfit during her London concert.the-independent+2

Pop Mart's TikTok Shop sales in the United States have surged dramatically, with April sales of $4.8 million representing an 89 percent increase from March, according to e-commerce intelligence firm Charm.io. The platform has become a key driver of international growth, with TikTok Shop sales jumping 1,000 percent year-over-year as of May.modernretail

Blind Box Strategy Drives Premium Margins

The company's success stems from its "blind box" sales model, where customers purchase mystery packages without knowing which specific Labubu variant they will receive. This strategy has created a secondary market where rare editions command premium prices, with some selling for over $1,000 and a life-sized figure selling for $150,000 at auction in June.the-independent+1

Pop Mart's gross profit margin rose to 70.3 percent in the first half from 64.0 percent a year ago, primarily due to overseas sales and product design optimization. The company now operates more than 475 international outlets, including flagship stores in New York's Times Square, Paris, and Melbourne.morningstar+1

Despite concerns over the addictive nature of blind box sales, which prompted China to ban sales to children under eight in 2023, Pop Mart's valuation has reached $40 billion, surpassing Hello Kitty owner Sanrio. The company's Hong Kong-listed shares have surged 588 percent over the past year, though they closed 1.4 percent lower Tuesday ahead of the results announcement.fortune+3

Sources (31)