Pop Mart faces cooling demand for its latest mini Labubu collectibles as secondary market prices tumble within days of the September release, signaling potential challenges for the Chinese toy maker's growth strategy.

Trading data from platform Dewu shows mini Labubu prices have dropped 10% to 60% from initial launch levels, with some non-premium variants falling to 106 yuan ($15) from 247 yuan on release day. The rapid price decline contrasts sharply with the sustained premium pricing of Pop Mart's third-generation Labubu series, which maintains 9.5 times markup five months after launch.

Pop Mart's Hong Kong-listed shares have declined 5.61% over the past five trading days following the mini Labubu release, reflecting investor concerns about the product's market reception and the company's ability to replicate previous viral successes.

Industry analysts suggest the mini version struggles to generate the social media buzz that drove earlier Labubu phenomena, potentially indicating market saturation for the character that helped propel Pop Mart's international expansion.

Secondary Market Shows Rapid Price Correction

The mini Labubu's secondary market performance reveals stark differences from Pop Mart's previous releases. On Dewu, over 56,000 units have traded since launch, with average transaction prices of 138 yuan ($19) per blind box—still 75% above the 79 yuan retail price but significantly lower than initial speculation levels.

Complete sets originally priced at 1,106 yuan ($154) reached 1,930 yuan on launch day before falling to 1,541 yuan, representing a 20% decline. Interest has also waned dramatically, with "want to buy" requests dropping from 9,398 to 362 users for certain product lines.

Even rare hidden variants, traditionally the most sought-after items, have seen substantial corrections. The "hidden love heart" variant, with odds of 1 in 168, dropped from 991 yuan to 679 yuan on Dewu platform.

Scalper Activity Diminishes as Premiums Compress

Reseller activity, a key indicator of collectible toy demand, has notably decreased compared to previous Labubu launches. Scalpers report selling complete sets for 1,800-1,850 yuan, down from pre-launch prices of 2,399 yuan, with some acknowledging that mini Labubu lacks the "staying power" of third-generation products.

The pricing pressure reflects Pop Mart's deliberate strategy to combat speculation through increased initial supply, online-only sales that reduce physical hoarding opportunities, and a 30-piece collection that encourages direct trading among collectors rather than secondary market transactions.

Supply Strategy and Market Saturation Concerns

Industry observers attribute the rapid price normalization to Pop Mart's evolved distribution approach and potential market fatigue. The company provided larger initial inventory compared to previous releases and restricted sales to online channels, with physical stores serving only as pickup points.

Internet industry analyst Zhang Shule noted that mini Labubu faces challenges generating sustained social media engagement, suggesting the product serves more as a gap-filler during slower periods rather than a breakthrough offering. The analyst predicted limited ability to create new sales phenomena as overall Labubu enthusiasm moderates.

Pop Mart is expected to launch a second wave of mini Labubu products in October, which industry watchers anticipate will further pressure secondary market pricing as supply increases.