Fatigue fever? Pop Mart welcomes Labu’s resale prices

This summer, the Toy Monster Labu charmed the world with its cute and chaotic energy, commanding resale ballizations that would make day traders blush or Rolex fins. A secret edition of Blind Box sold more than 2,000% above retail prices, according to Nomura. Last month, thieves in California organized a break of $ 30,000.

Now there are signs that the secondary market loses steam – the scalpers are sold for panic, observing the prices of the crater half or more. But Pop MartThe Chinese company behind the phenomenon, said that the drop in resale prices was exactly what it wanted.

“Our products are designed for people who really connect with the art and joy they bring – and we like to see this passion. Make this art accessible is the key to us,” Pop Mart said in a statement sent by e -mail to CNBC.

“If purchases are only to” make a profit “, this model will eventually block itself,” added the company.

Ashley Dudarenok, founder of the Chinese research firm Chozan, said that Pop Mart had previously left the resale prices to work to promote the opportunity, but that he now pivots a more stable and lasting model.

“Labu’s secondary resale market has considerably strengthened the popularity of the toy,” said Dudarenok. “At the same time, it is not very healthy in the long term, because it alienates your real customers, long -term customers. And Pop Mart does not want to be a wonder.”

The resale prices of Labu dolls began to decrease after Pop Mart increased production to meet demand, the company told CNBC, following complaints concerning the Scalpers.

Pop Mart now produces around 30 million toys in toys per month – 10 times higher than last year’s production levels, the company based in Beijing said.

But analysts highlight the cooling demand, especially in continental China and for older versions, like another factor.

“I think the scalpers publish stocks because they are afraid that if they deepen too much, they cannot sell,” said Hao Hong, director of investments at Lotus Asset Management.

Jeff Zhang, actions analyst in Morningstar, considers the secondary market as a barometer of the hottest products of Pop Mart. When the request exceeds the supply, the resale platforms become the place of transactions – and a key gauge from the place where the interest is directed.

Pop Mart actions fell 16% in the last month, but have been up more than 200% since the start of the year, according to LSEG data.

Pop Mart does not benefit from the secondary market; Revenues come when buyers buy directly. However, media threshing and perception of the generated rarity have helped.

Putting Labu on earth may be necessary, because mass product toys are not luxury items by nature.

“A gold watch will last forever. I think Hermès will last a long time … The doll will not,” said Hong.

For the moment, analysts expect the greatest successes of Pop Mart as Labu remain strong throughout next year, helped by expansion abroad, in particular in North America and Asia-Pacific.

Pop Mart already operates a theme park and collaborates with international brands such as Uniqlo, Disney and Coca-Cola. The company also invests in the original animation, he said, to expand personalities and stories.

Given the finish lifespan of a product, companies must capitalize on the buzz while it lasts, said Zhang de Morningstar. Pop Mart also extends beyond Blind Box’s strategy, which gave consumers the dopamine that has helped fuel the craze, but attracted the warnings of the Chinese state media to the addictive effects on children.

The real test for Pop Mart is not to know if Labu remains hot – it is if it can strike again.

Dudarenok compared the Pop Mart teams to “modern anthropologists”, moving on hopes and struggles of niche consumer groups to create characters that resonate.

“Pop Mart hollows and looks and always keeps.

“I think they will always surprise us with something cool in the years to come.”