Resale Prices for Labubu Toys Drop Amid Increased Supply

The resale market for Labubu toys from Pop Mart has experienced a significant decline in prices, primarily attributed to increased supply rather than a drop in demand. This shift has raised concerns among investors about the sustainability of the toy’s popularity. According to 22-year-old reseller Kasidit Teerawiboosin from Thailand, “Prices in the Thai resale market are going down really, really, really fast.” Teerawiboosin has been actively involved in buying and reselling the popular toys since early 2024.

Labubu, part of Pop Mart’s “The Monsters” series, accounted for over a third of the company’s revenue in the first half of 2023. The surge in popularity has been bolstered by endorsements from celebrities such as Lisa from K-pop group Blackpink, singer Rihanna, and former soccer star David Beckham. This celebrity influence contributed to a booming resale market, driving up prices for both the toys and Pop Mart stock.

However, recent data from the Chinese art toy resale platform Qiandao indicates that resale prices have plummeted since reaching their summer peak. For instance, the Labubu character “Luck,” launched in April, saw its price soar above 500 yuan (approximately $70.20) in June, but has since fallen to around 108 yuan. Other characters from the series are now being sold for less than their retail prices at official Pop Mart stores.

Investors have expressed concerns about the declining resale prices, leading to a drop of nearly 25 percent in Pop Mart’s stock since August. Despite this, analysts and company representatives emphasize that the issue lies more with supply than demand. The stock remains up 186 percent year to date, reflecting strong overall growth.

Pop Mart has significantly increased its production capacity this year, ramping up supply of plush toys, including Labubu, by ten times. The company now produces approximately 30 million units per month. Sid Si, Pop Mart’s executive director and co-COO, compared the situation to concert tickets. He noted that while concert venues cannot easily increase seating to meet surging demand, Pop Mart has the ability to proactively manage supply to alleviate pressure on resale prices.

The recent surge in sales made it challenging to purchase Labubu toys directly from stores, suggesting that the falling resale prices could indicate a balance between satisfied demand and increased supply. Jeff Zhang, an analyst at Morningstar, remarked that resellers likely accounted for a substantial portion of initial market sales, indicating that resale demand may not be the primary issue.

Pop Mart reported a remarkable revenue growth of up to 250 percent during July to September, surpassing the 204.4 percent growth noted in the first half of the year. Analysts from Morgan Stanley cautioned that prices in the second-hand market do not accurately reflect the true supply and demand dynamics, especially given the company’s efforts to curb scalping.

Looking ahead, analysts emphasize the potential of emerging characters like “Twinkle Twinkle” and opportunities for international expansion as key factors for Pop Mart’s future growth. Following the opening of its largest store in Bangkok in August, Teerawiboosin noted that resellers are increasingly seeking new markets overseas, particularly in regions lacking official Pop Mart stores, such as parts of Europe and Russia.

As the dynamics of the resale market continue to evolve, both investors and collectors will need to stay attuned to the shifting landscape of supply and demand surrounding Labubu toys and the broader Pop Mart brand.