Labubu dolls became quite a sensation overnight, but now the buzz around the plush toy seems to have dialled down. The Chinese toymaker behind the hyped-up dolls has seen its stock plummet as demand for the dolls declines.
According to Forbes, Pop Mart founder Wang Ning has lost nearly $6 billion from his fortune in less than a month as sales of the company's popular Labubu dolls slow down in mainland China.
Why Wang Ning's Net Worth Has Declined
While Wang, 38, has a net worth of $21.6 billion currently, it's a significant drop from late August, when his wealth was estimated at $27.5 billion - a number that made the Chinese doll maker richer than Alibaba co-founder Jack Ma. With a drop in stock prices, Wang now reportedly ranks as China's 14th richest person.
According to Forbes, Pop Mart's Hong Kong-listed stock has dropped more than 20% since 28 August, when the company launched the 4.0 series. These small, rabbit-like plush toys retail for 79 yuan (around $11) and come in 28 colours and styles. They are still being resold at higher prices on platforms like Dewu, which is known for reselling toys and luxury goods. However, the resale price of the latest Labubu toys has fallen by about 14% since launch, to around 150 yuan each.
The major reason behind the company's share decline is the fall in demand for Labubu across nations, including mainland China, as cited by JPMorgan Chase & Co. Overall, the share of positive recommendations for Pop Mart shares fell to 91%, the lowest level in the last year.
A Pop Mart spokesperson told Forbes that prices are falling because the company increased production to meet fan demand, making the toys easier to buy.
Pop Mart's Overall Stock Still Decent
Despite the setback in September, Pop Mart's stock price remains over 180% higher since the start of the year despite the recent dip. Experts believe the craze around Labubu led to skyrocketing sales in a short period.
However, Pop Mart also witnessed a sharp decline after losing nearly a quarter of its value - around $13 billion - in stocks. This was a major hit after 26 August when the company's shares reached a new high.
What's Next
In an effort to keep the buzz alive around Labubu, reports suggest Pop Mart will launch a new version of Labubu and roll out interactive toys before Christmas.
For the unversed, Labubu dolls are a series of collectable plush toys created by Hong Kong artist Kasing Lung. These dolls are part of Lung's The Monsters book series and feature a unique blend of cuteness and creepiness. They have wide eyes, pointed ears, and nine sharp teeth that form a creepy smile.
In recent months, the Labubu dolls have become a global phenomenon, taking the world of collectables by storm. These adorable elf-like creatures have captured the hearts of collectors, celebrities, and fans worldwide. Initially pretty accessible in price, ranging from under $25 (Rs 2,141 approximately) to $100 (Rs 8,563 approximately), rare versions of these dolls are now fetching high prices.