Pop Mart’s Labubus Craze Sparks Demand for Fake Lafufus

However, this meteoric rise comes with challenges. With shortages of the sought-after dolls and prices ranging from $20 to $40, consumers are increasingly turning to Lafufus as an alternative. While Pop Mart’s collection of toys, including Labubus, Cry Babies, and Molly figurines, has created a cult following, analysts warn that the company needs to sustain this momentum beyond the current viral trend.

Morningstar analyst Jeff Zhang noted, “Pop Mart has yet to demonstrate a sufficiently long track record of generating excess return on invested capital from self-owned IPs.” This observation raises questions about the company’s ability to maintain its current growth rate amidst rising competition and counterfeiting issues.

Despite the challenges, Lafufu fans are unashamed of their choices. Chamorro expressed delight in her newfound toy, saying, “My little monster, even though he’s not authentic, he’s still really cute in his own little way.”

Pop Mart is actively addressing counterfeit concerns. The company has trademarked the name “Labubu” in the United States since 2019 and has initiated legal action against retailers, including a lawsuit against several 7-Eleven stores in California for selling knock-offs. Meanwhile, China has intensified efforts to seize counterfeit Lafufus at customs, despite its own reputation for producing fakes of various brands.

The US Consumer Product Safety Commission has issued warnings about potential hazards associated with fake Labubus, advising consumers to look for authentic products that come with holographic stickers and QR codes. These measures highlight the importance of ensuring safety for young collectors.

Amidst the rising popularity of Lafufus, consumers are adapting. Cassandra Harrison, a 32-year-old from New Jersey, remarked, “Lafufus are a lot more unique looking, you know, the little mess ups and the little quirks … people like that.” Her friends are also starting collections, recognizing the charm in the imperfections of these counterfeit toys.

As Pop Mart continues to expand, with over 50 stores opened globally in 2023, the company is focusing on innovation. CEO Wang Ning recently announced plans to release mini Labubus, a strategy that has already driven a 14% increase in stock prices, reaching levels last seen in December 2020.

While the Labubu trend may seem overwhelming, Chamorro believes it may not last. “I feel like this is more of a trend and lowkey, I don’t think I’m going to get another,” she said, reflecting the uncertainty surrounding the future of this toy phenomenon.

As the market evolves, Pop Mart must navigate the fine line between capitalizing on its viral success and combating the counterfeit wave that threatens its brand integrity. The coming weeks will be critical in determining whether Labubus can sustain their popularity or if Lafufus will dominate the toy landscape.