Pop Mart, the creator of the wildly popular Labubu dolls, has seen a surge in sales following the release of a mini version of the monster-themed toys in August. The Chinese company reports a remarkable 250% increase in global revenue over the three months ending September, with significant boosts in sales from the Americas and Europe. This growth builds on Pop Mart's recent success, as its shares rose by over 5.5% in Hong Kong on Thursday, valuing the company at approximately $45.5 billion. However, Pop Mart's rise to prominence has sparked controversy. The company's use of 'blind boxes' to sell toys has been criticized for promoting gambling-like behavior and compulsive buying. Despite this, Labubu, the fictional elf-like creatures with jagged teeth, have become a collector's obsession, causing long lines at stores worldwide. The dolls' popularity has been further fueled by celebrity endorsements, including those from Kim Kardashian and Lisa from K-pop group Blackpink. Partnerships with Coca-Cola and the One Piece manga franchise have also played a significant role in elevating Labubu's global profile. Since its launch in 2019, Pop Mart has expanded its operations to over 2,000 vending machines and stores worldwide, solidifying its position as a major retailer. The company's shares began trading on the Hong Kong Stock Exchange in 2020, and since then, the price has skyrocketed by more than 280%. Despite recent concerns from Wall Street investment bank JPMorgan about potential overvaluation and the sustainability of toy popularity, Pop Mart continues to thrive, leaving many to wonder if this trend will continue.
