Chinese toy phenomenon Pop Mart finds itself at the center of dual controversies as its latest LABUBU plush series generates unprecedented demand while drawing consumer complaints over product quality.
The Collectible Gold Rush
The third-generation LABUBU blind box series has created market frenzy:
- Individual boxes (99 yuan) and full sets (594 yuan) sold out online
- Physical stores seeing queues with scalpers dominating purchases
- Aftermarket prices reaching 1,300 yuan (standard) and 2,600 yuan (rare variants) – 26x retail
The scarcity has spawned a parallel counterfeit market, with replica sets wholesaling for 300-550 yuan and imitation rare pieces selling above original retail at 180 yuan. “Don’t compare with official stores – they’re out of stock,” vendors reportedly tell questioning customers.
Mounting Quality Complaints
Social media platforms show growing consumer dissatisfaction:
- Reports of misaligned heads, paint defects, stitching issues and fur inconsistencies
- One user documented three replacement attempts for defective products
- Over 1,200 “LABUBU quality control” posts on Xiaohongshu
- 215 related complaints on consumer platform Hei Mao
The quality issues present an ironic contrast for the brand often called “the Moutai of youth” – referencing China’s premium liquor brand known for stringent quality standards.
Financial Fireworks
Behind the controversy lies staggering commercial success:
Performance Metrics
- 2024 revenue: 13.04 billion yuan (+106.9% YoY)
- Adjusted net profit: 3.4 billion yuan (+185.9%)
- Share price growth: 10x since 2024 opening (225 HKD current)
- Market capitalization: >300 billion HKD
Executive Movements
October 2024 saw major shareholder activity:
- GWF Holding sold 10.85M shares (781M HKD)
- Pop Mart Hehuo Holding sold equal amount
- Combined 1.56B HKD (≈1.43B yuan) reduction
The dual narratives of commercial triumph and product reliability present Pop Mart with both validation and challenges as it navigates its position at the forefront of China’s collectibles boom.
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