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Labubus: The Toy Craze Taking Australia by Storm
A unprecedented collectible phenomenon, Labubus, is captivating Australians, with many queuing for hours to snag these plush toys. Designed by Hong Kong artist Kasing Lung and produced by Chinese manufacturer Pop Mart, these quirky monsters have gotten the attention of investors, driving their popularity and prices upwards.
Labubus are sold in blind boxes, adding an element of surprise that significantly appeals to collectors, particularly within Gen Z. Retailing for around AUD $32, some rare models are reselling for an astonishing AUD $500. Popular opinion suggests that this trend has greatly benefitted Pop Mart, evident in their stock price surge of 425% within a year on the Hong Kong Stock Exchange.
The Rise of Pop Mart
Market analyst Josh Gilbert highlights that the demand for collectible toys, such as Labubus, has soared, fuelled by social media advocacy and endorsements from high-profile celebrities, notably Blackpink’s Lisa. This escalating interest has led Pop Mart to become one of Hong Kong’s top-performing stocks, recording a market capitalisation of approximately HKD $256 billion (AUD $51 billion) as of May.
With Labubus surpassing the market capitalisation of competitors like Sanrio Co, known for Hello Kitty, and Mattel, the owner of Barbie and Hot Wheels, Pop Mart is firmly establishing itself within the industry.
Store Expansion and Queueing Culture
Since opening its first physical store in Australia in August 2022, Pop Mart has expanded to 11 locations across major cities like Sydney, Melbourne, and Brisbane, along with additional automated kiosks. Shoppers are often seen lining up from the early hours of the morning, with some even paying as much as AUD $100 for someone to queue on their behalf.
The immense demand for Labubus means they frequently sell out on Pop Mart’s online platforms. Shoppers are encouraged to join an official WhatsApp group for updates on new releases, often leading to lines stretching around city blocks.
Financial Success and Future Ventures
Pop Mart has demonstrated impressive financial results, with net profit tripling to CNY 3.125 billion and total revenue exceeding CNY 13.04 billion in 2024. Following the release of a highly anticipated Labubu set in late April, the company’s stock reached a peak of HKD $199 (AUD $39.60), marking a sharp rise from previous closing prices.
Gilbert believes this surge reflects investor confidence in the toy’s popularity and profitability, fuelled by an ongoing demand transcend across product releases. In addition to Labubus, Pop Mart boasts a diverse portfolio including popular collections such as SKULLPANDA and Crybaby, and has previously collaborated with notable brands like Coca-Cola and Vans.
Conclusion
The Labubu craze highlights a unique intersection of collectible culture and investment opportunity. While the long-term sustainability of such trends remains uncertain, Pop Mart’s current trajectory suggests a lucrative future. As they navigate the collectible toy landscape, the company’s innovative strategies and ability to maintain consumer interest position it as a formidable player worth watching.
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