The global mania for Labubu dolls has given parent company Pop Mart a huge boost. The Hong Kong-listed stock has shot up 470 per cent over the past 12 months. With a market cap of HK$367bn ($47bn), Pop Mart is now worth more than Mattel, Hasbro and Japan’s Sanrio combined.
The profitability of the toothy elflike creature and Pop Mart’s “blind box” business model has given rise to a host of would-be competitors, such as Wakukus — launched by Chinese retailer Miniso — and Lafufus, as the fake Labubus flooding the market are called. Fears that they could take a bite out of Pop Mart’s colossal success, however, look misplaced.
Miniso looks like the chief challenger. The launch of Wakuku dolls drew long lines at its flagship stores across China, and the group has a far bigger physical presence than Pop Mart itself, with 7,900 retail stores worldwide against Pop Mart’s 443 stores and 2,437 vending machines. While Miniso is best known for selling budget-friendly knick-knacks such as home goods, toys, snacks and fashion accessories, it has form in selling products licensed from brands such as Disney and Marvel.