Analysis of the Labubu Price Collapse: Market Insights from Pop Mart's Strategic Adjustments

I. Dramatic Moments of Market Collapse

June 18, 2025, will mark an important turning point in the development history of China's trendy toy market. Pop Mart officially announced an unprecedented large-scale restock of the Labubu 3.0 series, a decision that was like pouring cold water into a boiling pot of oil, triggering violent shocks throughout the second-hand trading market. According to market monitoring data, within 72 hours after the restock announcement was made, the entire secondary market price system for Labubu products experienced a cliff-like drop.

Specifically looking at market reactions: The buyback price for complete boxes plummeted from a range of 1500-2800 yuan before restocking to just 650-800 yuan; the highly sought-after hidden version 'Ben Wo' quickly fell from its high position around 4600 yuan to about 2800 yuan; while regular model 'Loyalty' saw its average market price crash from around 418 yuan to approximately 120 yuan—a staggering decline of up to 71.3%. This price collapse is not an isolated phenomenon; its shockwaves rapidly spread to other product lines under Pop Mart as well. The average price for items in the Macaron series dropped by about 10%, and those in the Queue Up series saw a decrease of around 14%, with varying degrees of impact on pricing across the entire trendy toy market.

Social media immediately formed two distinct opinion camps. On one hand, ordinary consumers who had long been suppressed by high prices displayed obvious schadenfreude sentiments; topics such as 'The End Days for Scalpers' and 'The Final Act in Passing-the-Buck' quickly trended online. On the other hand, professional investors and industry observers began deeply contemplating strategic intentions behind this price collapse. Notably, this polarized public reaction reveals structural contradictions that have long existed within the trendy toy market—the intense struggle between genuine consumer demand and speculative capital.

II. Historical Origins and Mechanism Analysis Behind Price Control Failure

To fully understand this price collapse’s significance in terms of markets, we need to trace back through how prices were established for Labubu products since their explosive popularity began early in 2024—resulting in global supply-demand imbalances. In mainland China’s marketplace context specifically, physical stores typically only display samples without direct sales available;consumers must participate via official mini-programs during rush releases—but due to limited server capacity each time new products are released leads servers crashing further exacerbating purchase anxiety among consumers. Internationally similar dire situations exist: in Seoul’s Myeongdong flagship store incidents occurred where scalper-hired buyers clashed physically with ordinary customers; at London locations offline sales were forced suspended over three months due purchasing chaos occurring there too! Such globally pervasive shortages stem not merely lack production capabilities but rather deliberate maintenance ‘hunger marketing’ strategies employed by Pop Mart itself! Their replenishment mechanisms remain exceedingly opaque—store employees cannot provide specific timing or quantity information regarding stock availability leaving consumers reliant solely upon randomly issued online notifications or unofficial fan community updates instead! This artificially created scarcity provides perfect living space gray industrial chains emerging surrounding it all! Surveys indicate specialized teams utilize software priced at just ¥12 .88 per order sweeping purchases en masse whereby some groups report weekly profits exceeding ¥370000!! Even more shocking certain replenishment intel group memberships traded upwards thousands Yuan creating full-fledged black-market info networks thriving amidst these distorted ecosystems wherein initial mint condition mint green limited editions even auctioned off reaching jaw-dropping highs like ¥1 million diverging entirely away true value toys should possess inherently!! ### III.Strategic Retreat : Capital Markets’ Prescient Awareness While everyday shoppers express astonished disbelief concerning collapsing values astute players operating capital markets already commenced strategic withdrawals ahead timely foresight exhibited particularly evident path taken founding partner Tu Zheng known as ‘Pop Mart Talent Scout’ whose selling actions merit particular attention here: in May ’24 he divested shares totaling sixteen million units priced HK$35 .1 each ; again later October same year another five hundred thousand sold out albeit higher rate now pegged HK$58 .8 apiece finally culminating last round transactions completed clearing out altogether resulting total cash-out amounting roughly HKD22 .67 billion achieving returns surpassing372% overall investment gains realized thus far ! Founders Wang Ning also engaged similarly noteworthy maneuvers executing single-day sell-offs totaling twenty-one million shares followed closely thereafter core executives performing similar acts themselves indeed seemingly appearing at first glance mere opportunistic moves yet when viewed against subsequent performances revealed stark contrast seeing valuations skyrocket over thirty-fold spanning next two years breaking beyond thresholds worth ₤350 billion attained revealing depth insight regarding management team sensitivity towards risks lurking beneath surface realities present ! Financial metrics equally unveil unsustainable growth patterns observed especially notable being revenues associated directly attributed labubus skyrocketing figures climbing upwards ¥30 .41 billion translating percentage increases eclipsing725 % comprising23 % total company earnings consolidated basis therefore highlighting fact underpinning these surges derive fundamentally flawed premise relying heavily artificial scarcities lacking enduring cultural values supporting them adequately represented herein remarks anonymous analyst succinctly summarizes situation aptly stating “When grandmas down streets start discussing potential investments tied Labs , bubble inevitably reaches terminal stage!” ### IV.Regulatory Pressures & Reflections Upon Business Models Deeper crisis signals arise stemming tightening regulatory environment witnessed recently promotional campaigns launched banks offering deposits linked giveaways featuring labubus blind boxes swiftly met abrupt cessation demands enforced rectifications ensuing violations discovered exposing improper associations existing intertwining gambling psychology along commercial ventures previously flagged concerns raised publicly addressed founder humorously labeled largest domestic casino operator provoking unintended disclosures reflecting inherent flaws embedded blind box business models underlying structure therein! When any consumable item begins associating strongly gambling tendencies naturally draws heightened scrutiny regulators oversight bodies alike ! Similar practices faced strict limitations imposed elsewhere notably Europe nations Belgium Netherlands outright deem certain types blind-box sales illegal forms wagering activities whilst Chinese authorities unveiled draft guidelines regulating operations governing sector expected intensifying regulations forthcoming imminently approaching deadlines loom closer than ever before !!! Choosing proactively burst bubbles peak fervor marked periods perhaps reflects anticipation foreseeing looming threats posed future legislation changes awaiting inevitable consequences descending hard hitting industries seeking maintain balance integrity operational frameworks intact ensuring sustainable paths forward ultimately lead toward healthier environments flourish together harmoniously fostering mutual benefits shared amongst stakeholders involved parties working collaboratively alongside respective interests aligned strategically moving forth responsibly navigating complexities entailed evolving landscapes dynamically shifting continually changing nature marketplaces face daily challenges confronting uncertainties head-on facing today tomorrow undoubtedly require vigilance preparedness adaptability cultivate resilience survive thrive !! ### V.Value Return Industry Implications Essentially core essence derived phenomena encapsulated notion necessary return intrinsic worth attached commodities purchased exemplified best comparisons drawn sneaker debacles unfolding earlier times recalling events transpiring previous years witnessing dramatic declines seen following Nike collaborations led seventy percent experiencing depreciation significantly affecting resale opportunities markedly reduced former lofty aspirations dashed shattered dreams once held dearly replaced fresh influxes funds redirected towards trending fads namely collectibles NFTs spiraling cycles perpetuating vicious games played investors alike feeding frenzy mentality ensues driving speculation rampant unchecked behavior emerges stifling creativity authenticity fundamental joys derived playing engaging experiences evoking emotions profound connections forged cherished memories lasting lifetimes cultivated nurtured properly instilled respect appreciation valuated fairly henceforth shaping perspectives redefining relationships built brands devoted nurturing ties foster trust bonds reinforcing loyalty reciprocity enrich lives positively impacting society collectively inspiring generations uplift spirits transcending materialistic pursuits prioritizing meaningful engagements rooted purpose understanding recognizing importance maintaining equilibrium ensuring sustainability longevity preservation culture enriching communities uplifting individuals everywhere wherever found !!!