Pop Mart International will once again send a giant float down Sixth Avenue later this month for the Macy’s Thanksgiving Day Parade in New York City, but the company feels rather less buoyant than it did when it debuted at the event last year, according to a report published by the South China Morning Post.
The Chinese toymaker’s global ascent has stalled badly as the hype surrounding its Labubu dolls fades. Sales have plunged in recent months, dragging down the firm’s stock price and the net worth of its founder and CEO, Wang Ning.
Wang now faces a giant challenge as he searches for a way to reignite the Labubu craze – or move beyond it. Pop Mart is exploring a range of options, from theme parks to a Hollywood film, but engineering a new global mania will not be an easy task.
“The biggest challenge for Pop Mart is to maintain traction for its top IPs (intellectual properties), especially in overseas markets,” said Jeff Zhang, an equity analyst at Morningstar.
“Uncertainties remain on the sales of each IP, so we expect Pop Mart to further diversify across IPs.”
Pop Mart was catapulted to global success in 2024 after Lisa, star of the K-pop group Blackpink, posted about the firm’s Labubu toys on her Instagram feed. The “creepy-cute” dolls and keychains soon went viral, leading to more celebrity endorsements from stars including Rihanna and Dua Lipa.
The Chinese company opened new stores around the world over the following year as Labubu sales skyrocketed. It even sent two huge fluffy Labubu balloons across Manhattan for the 2025 Thanksgiving Day parade.
However, Labubu sales have gradually cooled. From last year’s exponentially high base, the toymaker has posted a sharp revenue drop this year, even as it has kept launching new toy ranges.
In the third quarter, the firm’s mainland China revenues were down 25 to 30 percent, while sales in the rest of Asia-Pacific and Oceania plummeted 65 to 70 percent. The Americas saw a 70 to 75 percent decline, while Europe and other regions posted a 50 to 55 percent fall, according to its latest earnings report.
To address a decline in global sales, Pop Mart is producing a Labubu feature film with Sony Pictures Entertainment, following the playbook of global toy brands such as Barbie and Hello Kitty. The film remains in the early stages of development, according to the company.
It also plans to open more Pop Land theme parks at home and abroad – smaller than Disneyland or Universal Studios – alongside its sole existing site in Beijing. The toymaker has even launched various small home appliances, including mini-fridges and coffee machines, to diversify its revenue streams.
Despite the headwinds, Chinese-American billionaire investor Duan Yongping has increased his holdings in Pop Mart multiple times. He now holds an 8 percent stake in the firm through his H&H International investment vehicle.
Duan reaffirmed his long-term bullish view, betting on sustained consumer demand for emotional value, amid doubts over the durability of Pop Mart’s IP appeal.
“I plan to add more shares, though I will cap my holding below 10 percent. Time will tell whether this is right or wrong in a few years,” he wrote in late October on Xueqiu, a Beijing-based social platform for investors.
