Azernews.Az

by Alimat Aliyeva

On September 15, shares of the Chinese toy company Pop Mart, known for producing the quirky and slightly eerie Lububu collectible dolls, experienced their biggest decline since April, falling nearly 9% in a single day. This drop comes amid growing concerns that the runaway success of the fluffy elf doll with the toothy smile may be fading. Despite this setback, Pop Mart’s stock still boasts an impressive 180% year-on-year growth, Azernews reports.

Analysts caution that Pop Mart’s heavy reliance on the popularity of Lububu could pose risks, as the character’s success might be part of a short-lived trend. To sustain its high valuation — currently valued at nearly 29 times its annual revenue — the company will need to continuously introduce fresh and appealing characters to keep consumers engaged and maintain its market momentum.

Yet, the company’s financial performance remains strong. In the first half of 2025, Pop Mart reported a staggering 350% increase in profits. Over recent years, the company’s share price skyrocketed from $34 to $270, reflecting growing investor enthusiasm.

Adding to the company’s impressive story, Pop Mart’s founder, Wang Ning, soared into the ranks of China’s wealthiest individuals in June 2025, entering the top 10 richest people with a net worth of approximately $21.4 billion.

The key question now is whether Pop Mart can diversify its product lineup and avoid becoming overly dependent on a single character to sustain its rapid growth in the fiercely competitive global collectible market.