The Phenomenal Success of Labubus and Pop Mart: A Deep Dive into the Numbers
Labubus, those mischievous elf plush toys that adorned the designer bags of every celebrity this summer, have achieved global virality. Now, we have precise insights into their popularity and profitability. On Tuesday, Pop Mart, the Chinese enterprise responsible for manufacturing and marketing the Labubu franchise, unveiled its financial report for the first half of 2025, revealing a remarkable year.
Pop Mart's Overall Financial Performance
- Pop Mart witnessed a substantial growth in revenue, registering a 204% increase compared to the previous year. Concurrently, net profits soared by 362%. The company's gross margin rate reached an impressive 70.3% in 2025.
The Monsters Franchise's Contribution
The Monsters franchise, masterfully designed by the Chinese - Dutch artist Kasing Lung and prominently represented by the character Labubu, was a significant revenue generator. In the first six months of 2025, it amassed over 4.81 billion RMB ($670 million) in revenue for Pop Mart. This marked a staggering 668% increase compared to the same period in the previous year. For context, during the same timeframe, Mattel sold $374 million worth of Barbie toys and $626 million worth of Hot Wheels products.
The soaring popularity of Labubu has catapulted The Monsters series to become Pop Mart's most successful franchise. It contributed nearly 35% of the company's total revenue, up from a mere 14% in June 2024.
The Role of Vinyl - Plush Keychains
Another crucial factor behind Labubu's viral success is Pop Mart's product line of vinyl - plush keychains. This unique toy blend, combining the softness of plush toys with the sculptural facial details typical of figurines, experienced an unexpected surge in popularity. Despite its launch in late 2023, it first gained traction in China and then spread to the West. Celebrities like Rihanna, Lady Gaga, and Kim Kardashian used these soft Labubu keychains as bag charms and accessories, sparking a social media frenzy and leading to sell - outs globally.
Pop Mart's financial report indicates that revenue from plush products grew by over 1,200% this year, reaching 6.13 billion RMB ($854 million), accounting for 44% of the company's total revenue. Since the start of 2025, Pop Mart has introduced more than 20 different plush products, employing various manufacturing techniques, aiming to replicate Labubu's success.
The Impact of Counterfeits and Second - Hand Market
- While these figures are impressive, they only partially represent the true popularity of Labubu keychains. There is a proliferation of counterfeit Labubus (commonly referred to as Lafufus by fans) in the global market. Due to a deliberate supply shortage by Pop Mart, some of its products, including Labubu plush dolls, are traded on the second - hand market at prices far exceeding their list price. However, the profits from these second - hand transactions are not reflected in the company's earnings.
Pop Mart's Global Expansion
Pop Mart, founded in 2010 as a trendy toy and gadget variety store, has steadily expanded its international footprint. By June 2025, over 40% of its revenue originated from outside China.
The company has experienced particularly rapid growth in the United States. In the first half of 2025, revenue in the Americas market (predominantly the US) increased by more than 1,100% to 2.26 billion RMB ($315 million). The number of physical Pop Mart stores in the Americas nearly doubled to 41, making it the company's fastest - growing region. Pop Mart now operates 571 stores worldwide.
