Pop Mart shares hit by news of weakening Labubu demand

According to reports, the selling spree was triggered by several retailers suspending their purchases of Labubu figures because price movements on the Chinese secondary market indicated weakening demand. This further worsened investor sentiment for a company that has been building its spectacular growth on trending figures for the past year.

“As investors worry that enthusiasm for Pop Mart’s products will wane, news of such weakening demand will hit the stock particularly hard,”

Bloomberg quoted Kenny Ng, a strategist at China Everbright Securities International.

According to the article, the share price has weakened since August, and since then the share price has fallen by about 44%, while the company’s market value has fallen by more than $25 billion. Meanwhile, the stock could still more than double this year overall, and Pop Mart’s value is reportedly roughly four times that of Sanrio.

According to data from the Qiandao toy reseller platform, the price of Labubu sets has already slipped below the store price, which may also indicate a slowdown in demand. Pop Mart may therefore focus on other characters in the near future: in addition to Labubu, it is trying to strengthen the figures of Crybaby, Twinkle Twinkle and Hirono – for example, an exhibition of Crybaby was recently held in Shanghai.