From 1,099,000 Won to 130,000 Won, an 88% Plunge... Pop Mart Smiles, Saying "It's Actually Good" Despite the Crash

Labubu Peaked Last Summer, But Interest Quickly Cooled
Fatigue from Blind Boxes and Jellycat's Entry Divert Consumer Attention
Pop Mart: "Achieving Balanced Growth with Diverse IPs... Strengthening Collaborations"

While there are recent assessments that the "Labubu" craze has subsided in South Korea, Pop Mart is drawing attention by interpreting this as a positive turning point. The company plans to move away from a structure focused on a single intellectual property (IP) and instead expand its presence in the domestic market by highlighting a variety of IPs. Recently, Pop Mart has also been seeking collaborations with entertainment agencies to broaden its consumer touchpoints.

According to Naver Data Lab on November 6, the search volume for "Labubu" peaked at 100 in July but plummeted to 4 as of November 4. This figure is a relative index, calculated by converting the highest search volume from January to November 6 this year to 100, based on approximately 10 months of search data. This suggests that public interest in Labubu quickly waned after the initial craze. The same trend is evident in the resale market. The "Labubu Self Keyring," released in April for 21,000 won, was traded at 1,099,000 won on the limited edition trading platform Kream in June, but by November 5, its price had dropped by 88% to 130,000 won.

Ros? and Jang Wonyoung holding Labubu keyrings. Screenshot from SNS

Labubu is Pop Mart's flagship IP, featuring a furry character with rabbit ears. It is released in various forms such as keyrings, plush toys, and figures, and is mainly sold as a blind box, where the contents are unknown until opened. This sales method stimulates the desire to collect and has gained popularity among Generation Z worldwide. In South Korea, celebrities such as Blackpink's Lisa created a buzz by posting photos with Labubu on social media. The Labubu pop-up store, which opened in Seongsu-dong, Seoul in September, also received significant attention, with all reservation slots fully booked within 10 minutes.

The recent decline in interest appears to be due to a combination of factors. According to Dashu Consulting, a global market research firm, the repetitive purchase structure of blind boxes causes consumer fatigue from duplicates, reducing expectations for rare models. Some observers also point to the expansion of supply following the surge in popularity as a reason for the diminished sense of scarcity. The official entry of the British brand Jellycat, which sparked the "attachment doll" craze in South Korea, into the market this month is also believed to have contributed to the dispersion of consumer interest.

Posters of various events and promotions recently held by Pop Mart in South Korea. Pop Mart Korea

Pop Mart has distanced itself from concerns about the focus on Labubu as a single IP and the recent decline in popularity. Instead, the company emphasized that it is making positive progress in diversifying its IP portfolio. Rather than remaining centered solely on Labubu, Pop Mart explained that both existing flagship IPs such as Molly and Dimoo, as well as emerging IPs like Skullpanda, have grown in a balanced manner, diversifying the overall IP portfolio. A Pop Mart Korea representative stated, "It is true that Labubu is the strongest IP in South Korea, but it is not the only factor driving our growth." The representative added, "In the early stages of entering the Korean market, the structure was focused on a few classic IPs, but now it has shifted to a balanced structure where multiple IPs coexist."

Going forward, Pop Mart plans to strengthen its presence in the domestic market through further IP diversification and brand expansion. The company is also implementing a marketing strategy that features a variety of IPs, not just Labubu, on official posters for recent events and promotions. On October 28, Pop Mart signed a letter of intent (LOI) with Starship Entertainment, home to the girl group IVE. The two companies plan to launch a joint project that combines the artists' music and visual IPs with Pop Mart's character IPs, offering new merchandise, collaborative content, and brand experiences.