Labubu Dolls’ Decline Erases $6 Billion from Pop Mart’s Founder

The popularity of Labubu dolls, once a highly sought-after collectible, has sharply declined, resulting in significant financial losses for Pop Mart and its billionaire founder, Wang Ning. Recent reports indicate that Wang’s net worth has fallen by approximately Rs 50,000 crore ($6 billion) within a month, as the company’s stock experiences a steep downturn.

At the end of August, Wang Ning, aged 38, held a net worth of around Rs 2.29 lakh crore ($27.5 billion), surpassing Alibaba founder Jack Ma as one of the richest individuals in China. However, following the launch of the Labubu 4.0 series on August 28, his fortune has plummeted to Rs 1.80 lakh crore ($21.6 billion), dropping him to 14th place among China’s richest.

The Labubu 4.0 series, priced at about Rs 900 (79 yuan), initially generated excitement in the market. Resale prices soared to as high as Rs 1,700 (150 yuan). Yet, this enthusiasm proved short-lived, as prices subsequently dropped nearly 14%, indicating a waning interest among consumers.

According to analysts at JPMorgan Chase, the decline in demand for Labubu dolls is not confined to China alone. They attribute this downturn to overproduction, which has diluted the perceived exclusivity of the toys. As a result, Pop Mart has seen its market value decline by nearly Rs 1.08 lakh crore ($13 billion) in just a few weeks.

Despite the recent slump, Pop Mart’s shares have increased by 180% since January, illustrating a mixed performance for the company. Industry insiders suggest that Pop Mart is already working on new editions of Labubu dolls and interactive toys in anticipation of the holiday season, betting on fresh launches to reignite consumer interest.

As the company navigates this challenging landscape, the resilience of the Labubu brand will be tested. With new products on the horizon, Pop Mart hopes to reclaim its position in the competitive toy market and restore the charm that once captivated collectors worldwide.