Not Just a Bunny: A Crash Course in Speculation
A small cube on a shelf. No branding. No instructions.
Just a cryptic label: POP MART. The Monsters.
Inside, a figurine. Roughly the size of your palm.
Big round eyes, snaggle teeth and a chaotic grin.
What was it exactly?
A bunny? A goblin? No one could tell.
And somehow, that only made it more desirable.
Collectors called it “Labubu”
First, they bought one. Then three.
Then blind boxes by the dozen—because here’s the catch: you never know which version you’ll get.
It wasn’t long before entire communities sprang up—tracking editions, filming unboxings, flipping rare finds online.
What started as a niche toy became a social media spectacle.
Then came the numbers.
One sold for ₹1.25 crore.
TikTok Shop sales shot up over 1,800% in a single year.
The brand behind it—POP MART—overtook Mattel and Hasbro in valuation.
And Labubu? It went from shelf-sitter to status symbol.
But here’s where it gets interesting.
This isn’t just a story about a toy.
Because whether it’s a bunny going viral or a small-cap hitting upper circuits—the emotional arc looks oddly familiar.
What’s the News?
In May 2025, POP MART’s TikTok Shop US sales jumped from $429,259 to $4.8 million—followed by $5.5 million in June.
That’s a 1,828% YoY surge, driven by viral demand.
The brand’s valuation now crosses $38 billion, overtaking even Mattel and Hasbro.
Meanwhile, resale values have shot through the roof: A life-sized Labubu fetched $150,000 in Beijing.
And the hype? Still climbing (mostly).
So, how did we get here—and what does this teach us about bubbles?
Blind Boxes, Blurred Value: Speculation Without Signals
Labubu dolls are sold in blind boxes—you don’t know what you’re getting until you rip it open.
That randomness fuels speculative buying and resale panic. It’s not unlike day trading: emotion > fundamentals.
Rare Labubu editions spiked to $700 on resale platforms, while standard ones depreciated within weeks.
Unpredictable? Absolutely.
Sustainable? Not really.
The blind box model mimics low-fundamental, high-volatility stocks — think penny stocks or pre-revenue IPOs.
Just like traders pile into trades based on buzz or randomness, Labubu buyers chase “rare” dolls without knowing what they’re getting.
Celebrity-Triggered Surges
It only took BLACKPINK’s Lisa and Rihanna to send Labubu viral in early 2024. On 18 September, social media mentions spiked 33x.
But here’s the plot twist: by mid-2025, mention volume fell 11% YoY, even as reach rose 76% and engagement jumped 137%.
The takeaway? Celebrity hype can launch trends—but it doesn’t always carry them.
Traders often pile into stocks or sectors backed by celebrities or influencers.
Remember what happened with Dogecoin?
But as with Labubu, initial surges often give way to fatigue.
Scarcity ≠ Value
Limited drops like the Big into Energy and Coca-Cola editions vanished within hours.
Auctions broke records: A four-foot-tall (131 cm) mint-green edition sold for $172,800 at auction.
Source: people.com
What’s more? All 48 Labubu lots fetched a combined $520,000.
In the UK, POP MART paused sales to cool the speculation.
Scarcity drives FOMO, YES!
But resale volatility shows cracks.
For traders, it’s a classic bubble signal that rare doesn’t always mean resilient.
Community = Buzz (Not Value)
Unboxing videos drove major traffic: Influencer Lana Rae’s Labubu reel hit 1.2M views, Chef Guadalupe Fiñana’s post got 700K likes.
But here’s the catch: Labubu has zero functional utility.
It’s not interactive, doesn’t evolve, and doesn’t offer any experience beyond ownership.
Emotional engagement is great—but as traders know, hype does not equal fundamentals.
Just as traders often confuse low float or limited supply with “guaranteed upside,” the Labubu example shows that unless scarcity is paired with sustained demand, price collapses follow.
Expansion ≠ Depth
POP MART opened 50+ new US stores in 2025, chasing global traction.
In India, Labubu dolls retail between ₹2,200–₹15,000, but resale pricing is erratic, and counterfeits are a growing concern.
For traders, the lesson in disguise is that wide distribution doesn’t always guarantee a strong demand.
Market depth needs more than shelf space.
More stores or product availability doesn’t ensure price strength.
Just like adding more IPO-bound fintechs doesn’t mean India is ready for them all.
Emotional Branding: The Meme Stock Parallel
Labubu’s aesthetic?
Think “ugly but cute.” And that’s intentional.
From January to May 2025, Labubu was called ‘cute’ 19,800 times, and ‘ugly’ just 4,000 .
That emotional connect fuels irrational buying, much like meme stocks.
It’s not about value. It’s about vibes.
But, as we know, sentiment-driven surges tend to be short-lived.
When Saturation Hits
By mid-2025, Labubu had its Louvre moment (yes, really) and even inspired Labubu-themed tarts in Moscow.
But saturation soon followed: Crowd control issues led POP MART to pause UK sales.
Social backlash over its “demonic” design started trending.
Just like with asset bubbles, overexposure often triggers reversals.
Final Word
Labubu started as a niche toy and turned into a global mania.
It isn’t just a story of hype—it’s a case study for traders.
From blind speculation and influencer-led spikes to oversupply corrections and backlash, its rise follows the same emotional arc we see in equity markets again and again.
So whether you’re trading IPOs, meme stocks, or thematic funds—ask yourself:
- Is there fundamental demand behind the surge?
- Is the scarcity real—or just engineered?
- Are you buying value, or just vibes?
Because when the music stops, you don’t want to be left holding the bunny.
Sources and References:
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. The above images were generated using AI. Read the full disclaimer here.
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