This decline prompted some collectors to sell their dolls for greater profits. Pop Mart emphasized the company's fundamentals and growth potential, noting that revenue in the first half of 2025 tripled to 13.9 billion yuan, while profits surged fivefold to 4.6 billion yuan. Previously, "Labubu" dolls had attracted global celebrities like Rihanna, Kim Kardashian, and Lisa from Blackpink, causing long queues at stores worldwide. Meanwhile, analysts pointed to "fashion fatigue," as "Labubu" dolls no longer enjoy the same level of popularity, reflected in declining visitor numbers and absent queues in most retail stores, except for new openings or select cities. Experts believe the company's ability to maintain "Labubu"'s popularity or create new characters will determine its future stock performance. Some analysts predict the share price could drop to 100 Hong Kong dollars next year, while others suggest a partnership with film companies like Sony could help expand the toy's global influence. Chinese billionaire Wang Ning, founder and CEO of Pop Mart, lost about $11.3 billion from his fortune, which peaked at $27.5 billion during the "Labubu" craze last August, amid fears that the doll might be just a passing trend. Analysts cite weak demand in Greater China and slowing growth in overseas markets, especially after "Labubu" doll prices fell on the secondary market. On the Chinese resale platform Xianyu, the "Labubu 4.0" series prices dropped by 30% to around 115 yuan ($16.3) per doll, though the official price remains 79 yuan each. According to Forbes, Pop Mart's founder still holds a fortune estimated at around $16.2 billion, mostly from his stake in the publicly-listed toy company on the Hong Kong Stock Exchange. Pop Mart's shares have plummeted by about 40% since August, from 339.80 Hong Kong dollars to around 200 dollars, allowing Alibaba's founder Jack Ma to reclaim the top spot as China's richest person. Decline in Labubu's popularity. Analysts expect the company to face significant challenges next year, with revenue growth potentially reaching only 30% compared to the 200% growth forecast for 2025. Wang Ning had earlier predicted the company's sales would easily reach 30 billion yuan this year. Analysts suggest part of the potential slowdown is due to the company's strategy of increasing doll production to become a Disney-like entertainment brand, rather than relying solely on limited marketing to generate hype.
