Sou Hu Cai Jing·2025-12-17 12:06Core Viewpoint - The demand for Labubu collectibles has decreased significantly, leading to a drop in prices and a substantial decline in the stock price of Pop Mart, despite the brand's global expansion and revenue growth potential [1][3][11]. Group 1: Price and Market Dynamics - Labubu collectibles, which were once priced at a premium, have seen their prices drop to between 129 and 179 yuan, with some second-hand prices falling below official retail prices [3]. - The production capacity of Labubu has increased from 10 million units per month in the first half of the year to 50 million units per month by the end of the year, contributing to the decline in prices [11]. Group 2: Financial Performance and Market Reaction - Pop Mart's stock price has experienced a significant decline, dropping from 339.8 HKD in August to 184.6 HKD recently, resulting in a market value loss of 200 billion HKD [11]. - Morgan Stanley projects that Labubu's sales will reach 15.5 billion yuan this year, a 41-fold increase compared to 2023, but anticipates a slowdown in growth next year due to potential consumer loss [11]. Group 3: Brand Expansion and Future Prospects - The popularity of Labubu has enhanced Pop Mart's brand recognition globally, with over 60 physical stores established in the U.S. and ongoing expansion in key markets such as North America, Europe, and the Middle East [11][13]. - Pop Mart is diversifying its operations by shifting from solely selling products to offering content (such as animated series) and experiences (like theme parks), which may provide a more stable growth path [13].