Since Pop Mart’s stock hit a record high of HKD 339.8 (USD 43.6) per share on August 26 last year, it has fallen more than 40% over the past five months. Industry analysts largely attribute the decline to the fading premium surrounding its once-dominant IP, Labubu.
Data from the Dewu app shows that the Labubu “Big into Energy” blind box now trades at an average price of RMB 100.25 (USD 14), down 23% from its 90-day peak. Compared with its record high of RMB 639.32 (USD 89.5) last June, shortly after Pop Mart launched the “Wacky Mart” series, the decline exceeds 84%.
In some cases, prices have fallen even further. On Tmall’s subsidy-driven channel, unopened blind boxes are selling for as little as RMB 86 (USD 12), below Pop Mart’s official retail price.
Anxiety in the consumer market has spilled into capital markets. According to data from Wind, the number of Pop Mart shares sold short has risen sharply since August 2025, at one point nearing 10,000 shares.
On January 19, Pop Mart announced plans to repurchase 1.4 million shares at prices ranging from HKD 177.7–181.2 per share (USD 22.8–23.2), for a total outlay of HKD 251 million (USD 32.2 million). The buyback, its first since 2024, was widely interpreted as a signal of confidence from management.
Fueled by celebrity exposure, Pop Mart has become one of China’s most successful global consumer exports, with Labubu emerging as its standout asset. According to the company’s earnings report, The Monsters series, which includes Labubu, generated RMB 4.81 billion (USD 673.4 million) in revenue in the first half of 2025, accounting for nearly one-third of total revenue.
Around the same period, however, Pop Mart began tightening control over the secondary market by cracking down on scalpers and increasing supply. In a media interview, founder Wang Ning said that after September 2024, Labubu’s monthly sales could reach ten million units worldwide. “We’re trying in every possible way to keep it from being maliciously speculated on,” he said.
Dewu data supports that assessment. After “Wacky Mart” launched, Pop Mart restocked Labubu vinyl and plush toys six times. The expanded production quickly pushed down prices of the mini Labubu edition, undermining scalpers’ hoarding strategies.
At the same time, Pop Mart has dialed back online hype by deploying robotic vending machines to steer traffic toward physical stores. In retrospect, the company appears to have largely regained control over pricing.
As a result, consumers can now buy standard editions at or near retail prices, while hidden or limited-edition versions command modest, more rational premiums. From a business perspective, the strategy helps Pop Mart protect margins while maintaining the credibility of its premium IP portfolio.
In a research note, Deutsche Bank said Labubu’s production capacity expanded from 10 million units in the first half of 2025 to a monthly average of 50 million by year’s end. The firm estimated the expansion could lift Pop Mart’s adjusted net profit to RMB 14.5 billion (USD 2 billion) in 2025.
Still, Labubu’s rapid rise and correction have reignited debate over Pop Mart’s reliance on blockbuster IPs and the sustainability of such product cycles.
Notably, even as resale premiums have declined, scarcity has increased in select collaborations. In October last year, Labubu partnered with LVMH’s heritage brand Moynat. Shortly afterward, Twinkle Twinkle collaborated with bubble tea chain Heytea. Around the same time, Pop Mart hired Wu Yue, former president of Louis Vuitton China, a move widely seen as signaling deeper diversification and a push upmarket.
On the same day it announced the buyback, Pop Mart also unveiled a Molly-themed smartphone developed with Honor. Based on the Honor 500 specifications, the device features Molly artwork on the back, along with a customized interface, boot animation, and photo watermark built around the IP.
By most measures, Pop Mart remains among the industry’s most efficient creators of blockbuster IP. In the first half of last year, The Monsters, Molly, Skullpanda, Crybaby, and Dimoo each generated more than RMB 1 billion (USD 140 million) in revenue. Thirteen additional artist IPs, including Hirono, Twinkle Twinkle, and Hacipupu, surpassed RMB 100 million (USD 14 million) in sales. Even so, Pop Mart’s ambition to become a global, IP-centric platform will hinge on its ability to balance scale with perceived scarcity.
Pop Mart is not alone in using buybacks to steady investor sentiment. Other Chinese consumer companies, including Kweichow Moutai and Midea Group, have also announced repurchase plans, reflecting expectations of a gradual recovery in consumption.
A telling comparison has emerged. As Labubu’s market price has converged toward retail, Feitian Moutai has, for the first time, traded at its official retail price of RMB 1,499 (USD 209.9). While the products serve very different consumers, both shifts suggest a correction of speculative excesses as supply and demand rebalance.
Pop Mart’s repurchase plan has received broad investor approval. Morgan Stanley said the company’s long-term growth story remains intact and projected net profit of RMB 12.6 billion (USD 1.8 billion) for 2025. Other analysts noted that the buyback could help establish a price floor, supported by expected strength in 2025 earnings and momentum into the first quarter of 2026.
As of publication, Pop Mart shares were trading at HKD 197.6 (USD 25.3) at the market open on January 22, up more than 9% since the January 19 buyback announcement.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xie Yunzi for 36Kr.