Eliza Wong
The Labubu Phenomenon Hits Seoul Streets
The bustling Hongdae district in Seoul has become ground zero for one of Asia’s most surprising consumer phenomena: the Labubu mania. What began as a collector’s niche has exploded into a full-blown cultural movement, with Pop Mart’s (泡泡玛特) charismatic monster character driving unprecedented consumer behavior across South Korea. The scarcity of official products has created a perfect storm of secondary market speculation, street vendor opportunism, and international regulatory attention.
First Financial reporter Chen Shanshan discovered during recent fieldwork that Pop Mart’s flagship Seoul store showcases the intense demand for these collectibles. Consumers of diverse nationalities crowd around THE MONSTERS series displays, carefully examining each figure while discussing trading strategies and rarity valuations. The scene resembles a high-stakes auction house rather than a retail environment.
Retail Reality: No Walk-In Purchases
Store employees confirm the radical shift in distribution strategy. ‘We don’t sell Labubu directly in stores anymore,’ explained one staff member. ‘Even mini Labubu figures are display-only. Customers must pre-order online through our official website lottery system and then pick up in person.’ This change represents a fundamental restructuring of how collectibles reach consumers in high-demand markets.
From Midnight Queues to Police Intervention
The current purchasing system emerged from necessity rather than strategy. Before June 2025, consumers could purchase Labubu products directly from Seoul’s Myeongdong store, but the situation escalated beyond control. The Labubu mania reached such intensity that consumers began overnight camping, physical altercations broke out over limited inventory, and local police were forced to intervene to maintain public order.
On June 17, 2025, Pop Mart International Group announced sweeping changes to their Korean distribution model. The new rules implemented:
– Elimination of all direct offline sales
– Mandatory online pre-order lottery system
– Real-name registration requirements
– Strict purchase quantity limitations
These measures represent one of the most aggressive anti-scalping systems implemented in the collectibles market, reflecting the unprecedented demand for Labubu products.
The Economics of Labubu Mania
According to local sources, the Labubu mania began accelerating in late 2024, particularly among Generation Z consumers. The phenomenon isn’t limited to Korean collectors—tourists from Southeast Asia and China specifically target Korean Pop Mart locations during their travels, recognizing the international valuation differences and trading opportunities.
Secondary Market Dynamics
The official pricing structure places Labubu figures at 21,000 Korean won (approximately 105 Chinese yuan), slightly above China’s domestic 99 yuan price point. However, the secondary market told a different story during peak demand periods. Rare figures commanded multiples of their original value, though local sources indicate recent cooling in aftermarket premiums.
This Labubu mania has created sophisticated arbitrage opportunities across Asian markets, with traders moving products across borders to capture regional price differences. The phenomenon demonstrates how collectible markets have become globally integrated through digital platforms and mobile connectivity.
Street Fakes and Customs Crackdowns
The Hongdae commercial district reveals another dimension of the Labubu mania: widespread counterfeit operations. During evening hours, street vendors display surprisingly accurate replicas priced at approximately 20,000 won (100 yuan)—essentially matching official pricing for unauthorized products.
Local consumers acknowledge these products are likely counterfeit, yet the pricing parity with authentic goods suggests either production cost similarities or consumer willingness to pay premium prices regardless of authenticity. This aspect of the Labubu mania demonstrates how brand value can transcend product authenticity in certain market conditions.
International Enforcement Response
The situation gained international attention when U.S. Customs and Border Protection (CBP) intercepted a massive shipment of counterfeit Labubu dolls at Seattle-Tacoma International Airport. Officers discovered 11,134 fake dolls misdeclared as ‘LED light bulbs’ with an estimated retail value of $513,937.76. Significantly, the shipment originated from South Korea, indicating sophisticated counterfeit operations within the same country experiencing genuine product shortages.
This enforcement action highlights how the Labubu mania has created opportunities for illegal operations to exploit supply gaps across international markets. The seizure represents one of the more significant intellectual property interventions in the collectibles space recently.
Corporate Performance Amid Market Frenzy
Pop Mart International Group’s financial performance reveals the substantial business impact of this collectibles phenomenon. According to their 2025 interim report, the company achieved staggering growth metrics:
– Total revenue: 13.88 billion yuan, up 204% year-over-year
– Adjusted net profit: 4.71 billion yuan, up 362.8% year-over-year
The geographical breakdown demonstrates the global nature of this expansion:
– China revenue: 8.28 billion yuan (+135.2%)
– Asia Pacific revenue: 2.85 billion yuan (+257.8%)
– Americas revenue: 2.26 billion yuan (+1142%)
– Europe and other regions: 480 million yuan (+729.2%)
These numbers contextualize the Labubu mania within broader corporate strategy, showing how single product lines can drive extraordinary regional growth when cultural resonance aligns with scarcity dynamics.
Market Implications and Investment Perspective
The Labubu phenomenon offers several important considerations for investors monitoring Chinese consumer brands and the broader collectibles market. First, it demonstrates the revenue potential of intellectual property development when combined with disciplined supply management. Second, it shows how digital-native purchasing systems can manage extreme demand while reducing physical retail conflicts.
However, the proliferation of counterfeits also highlights vulnerability in brand protection strategies. The presence of high-quality fakes selling at near-genuine prices suggests either production pipeline vulnerabilities or consumer indifference to authenticity—both concerning indicators for long-term brand equity.
Regulatory and Supply Chain Considerations
The Korean market experience provides a case study in regulatory adaptation to collectibles market dynamics. The implementation of lottery systems and purchase limitations represents innovative market management, but also raises questions about accessibility and consumer fairness. Meanwhile, customs interventions demonstrate how global supply chains become exploited when legitimate supply cannot meet demand.
Looking Ahead: Sustainable Growth or Cultural Moment?
The critical question for market observers is whether the Labubu mania represents sustainable brand development or temporary cultural phenomenon. Several factors suggest staying power: the demographic appeal to Generation Z consumers, the international scalability demonstrated across regions, and the financial results showing diversified geographic revenue streams.
However, challenges remain regarding counterfeit prevention, supply chain management, and maintaining cultural relevance beyond the current hype cycle. The company’s ability to innovate beyond single product lines will determine long-term viability.
For investors and market participants, the Labubu phenomenon offers valuable insights into modern consumer behavior, cross-border market dynamics, and intellectual property valuation. Monitoring how Pop Mart manages this unprecedented demand while protecting brand integrity will provide signals about the company’s operational capabilities and long-term prospects.
Market participants should watch for several key indicators: secondary market price stabilization, counterfeit market penetration rates, new product line receptivity, and geographic expansion patterns. These metrics will help distinguish temporary phenomenon from sustainable brand development in the rapidly evolving collectibles space.
