The Rise of Labubus: A Collectable Craze in Australia
Aussies are queuing for hours to secure the latest collectible sensation: Labubus. Designed by Hong Kong artist Kasing Lung and produced by Chinese toy manufacturer Pop Mart, these plush toy monsters are taking the market by storm. With the allure of surprise blind boxes, collectors are eager to find out which limited edition figures they will end up with. Some rare Labubu toys initially priced at $32 are now reselling for an astonishing $500 online, showcasing a robust demand among younger generations, particularly Gen Z.
According to Josh Gilbert, a market analyst at eToro, the popularity of Labubus has significantly benefitted Pop Mart, with its stock soaring by 425% over the past year on the Hong Kong Stock Exchange. Gilbert notes, “Pop Mart’s shares experienced a notable rally last year,” driven by social media hype and endorsements from celebrities, including K-pop star Lisa from Blackpink.
In 2024, the company’s stock price leaped by more than 340%, positioning Pop Mart as one of Hong Kong’s standout performers in the stock market. As of May, Pop Mart’s market capitalisation was approximately HKD$256 billion (AUD$51 billion), exceeding that of popular brands like Sanrio Co, known for Hello Kitty, and Mattel, which is behind iconic brands like Barbie.
Pop Mart first opened a physical store in Australia in August 2022 and has since established 11 outlets across major cities like Sydney, Melbourne, and Brisbane, complemented by 19 automated ‘robo shops’. These locations have become hotspots for eager shoppers often seen waiting in long lines. Reports indicate that some customers arrive as early as 2:30 AM to secure their Labubus; one individual even resorted to paying someone $100 on Airtasker to stand in line for him.
The excitement surrounding Labubus is mirrored in large cities globally, with Pop Mart reporting that its online store frequently sells out of these toys. Customers can stay updated regarding new inventory through Pop Mart’s official WhatsApp group. With relentless demand and continuous sell-outs, the market’s interest shows no signs of waning.
Pop Mart’s recent financial performance has also been remarkable, with net profit tripling to 3.125 billion yuan and total revenue more than doubling to 13.04 billion yuan for 2024. The stock price surged to a record high of HKD$199 (AUD$39.60) on April 30, following the release of a much-anticipated Labubu set. The stock saw a 12% rise shortly thereafter, reflecting strong investor confidence in the brand’s trajectory.
Beyond Labubus, Pop Mart is building a diverse portfolio of successful collections, including SKULLPANDA and Crybaby. The company is contemplating further brand collaborations, potentially expanding into media partnerships. Despite the uncertainty surrounding the longevity of such collectible trends, Gilbert emphasises Pop Mart’s knack for stimulating demand, positioning the company as one to watch in the coming years.
In summary, with Labubus at the forefront of this collectible movement, Pop Mart is not just playing with toys – they are strategically navigating the market’s evolving dynamics, appealing to a youthful audience eager for the latest trends.
