Summary of Key Points
Bubble Mart’s top IP, LABUBU, has encountered a rare decline in popularity with its new “Retro Barber Shop” series of blind boxes: regular items have fallen below their original price (breaking the initial offering price), while the premium on hidden items has significantly decreased. Bubble Mart attributes this to a slowdown in traffic following the rapid growth last year, which indicates that the foundation for the brand’s success was not solidly established. As LABUBU generates nearly 40% of the company’s revenue, changes in its popularity directly affect overall performance. Additionally, despite Bubble Mart’s diversification efforts in areas such as film and television, offline desserts, and its own mobile games, these attempts have not been successful.
Detailed Analysis
Why Have LABUBU’s New Products Lost Their Appeal?
- Regular Items Falling Below Price: Previously, LABUBU products would sell out instantly and be resold at high prices on the secondary market; the hidden items could fetch prices up to 25 times their original cost. This time, however:
- Lower Purchase Barrier: Stocks were restocked immediately after the initial sale, eliminating the need for long waits in line.
- Regular Items Dropping in Price: Popular items like “Rain After the Rain” and “Light Blue Overture” have dropped to below 100 yuan (from an original price of 159 yuan), a 30% reduction.
- Reduced Premium on Hidden Items: The only hidden item, “Misty White Noise,” increased in price to 879 yuan (a 5-fold increase), but far less than the previous 25-fold surge.
A fan of trendy toys commented, “Last year, these items were hard to get; this year, they’re easily available, and even second-hand ones are sold for less than the original price. The gap is huge.”
LABUBU as Bubble Mart’s Cash Cow
The THE MONSTERS series, which includes LABUBU, is a crucial revenue driver for the company. In 2025, this series generated 14.16 billion yuan, accounting for 38.2% of total sales—meaning nearly 40% of Bubble Mart’s earnings come from LABUBU alone. Therefore, any decline in its popularity directly impacts the brand’s financial performance.
Why Does Bubble Mart Explain the Decline in Popularity?
Guo Dezhe, the Chief Operating Officer, provided the following reasons at the performance meeting:
- Insufficient User Base: Many new users last year were attracted to LABUBU but lacked knowledge of trendy toy culture and other IPs, leading to a rapid influx followed by a decline in engagement.
- Lack of Overseas Expertise: Newly hired overseas staff only had a superficial understanding of the company’s business, focusing mainly on LABUBU.
- Natural IP Cycle: The popularity of IPs naturally fluctuates; even icons like Mickey Mouse and Pikachu don’t remain at their peak forever. The key is to build a loyal fan base and create long-term value.
Bubble Mart’s Diversification Attempts
To reduce reliance on a single IP, Bubble Mart has ventured into various areas:
- Film and Television: Collaborating with Sony to develop a live-action animated movie to bring LABUBU and other IPs to the big screen.
- Offline Desserts: Opening its first direct-operated dessert store in Anaya to combine trendy toys with dining experiences.
- Game Failure: The self-developed mobile game “Dream Home” was discontinued in 2026, marking a setback in this venture.
These efforts show that Bubble Mart is seeking new growth opportunities, but not all attempts have been successful.
Significance of the Trend
The decline in LABUBU’s popularity reflects a shift in the trendy toy industry. In the past, success relied on “hunger marketing” and secondary market speculation; however, consumers are now more discerning. IPs need genuine content and fan loyalty to sustain their popularity. Bubble Mart’s response indicates that they recognize the importance of long-term growth over short-term spikes in popularity. After all, blind boxes that are difficult to obtain cannot retain true fans.
In summary, LABUBU’s recent decline is not an isolated incident but a challenge that companies like Bubble Mart must face as they grow. The question at hand is how to transform short-term success into sustained popularity and balance short-term sales with long-term value development.