CHINA : In August last year, Chinese entrepreneur Wang Ning briefly overtook Jack Ma, co-founder of Alibaba Group, after the viral success of Pop Mart’s Labubu dolls sent his net worth soaring. The doll, described as looking like a rabbit with pointed ears and a mischievous smile, became a global sensation, fuelled by celebrity endorsements and long queues outside stores.

However, Wang’s wealth has since dropped by about $11.3 billion from a peak of $27.5 billion, amid growing concerns that Labubu may have been a passing fad. Forbes now estimates his fortune at $16.2 billion, largely tied to his stake in Pop Mart International Group, which is listed in Hong Kong.

Pop Mart’s shares have fallen around 40% from their August high of HK$339.80 to about HK$200, pushing Wang back behind Jack Ma in China’s billionaire rankings. Analysts warn that the new year could bring further challenges, with Morningstar forecasting revenue growth of as little as 30%, sharply lower than earlier expectations of triple-digit expansion.

Weak demand in Greater China and slower overseas growth have added to the pressure, alongside falling resale prices. On Chinese resale platform Dewu, the latest Labubu 4.0 series, a set of 28 mini plush toys, has seen prices drop by around 30% since its late-August launch. While resale values remain above the official retail price, some collectors have exited the market after profits failed to meet expectations.

Despite the slowdown, Pop Mart has posted strong recent results. In the first half of the year, revenue tripled year-on-year to 13.9 billion yuan, while profits surged fivefold to 4.6 billion yuan. Wang has said the company could “easily” reach sales of 30 billion yuan by 2025.

Industry experts suggest the expected cooling reflects a strategic shift rather than a collapse. Analysts note that Pop Mart is increasing production as it seeks to evolve into a Disney-style entertainment brand, moving away from scarcity-driven marketing. Deutsche Bank estimates monthly production has risen to 50 million dolls, up from 10 million earlier this year, but warns of “fashion lukewarmness” in many overseas markets.

The Labubu dolls have been embraced by global celebrities such as Rihanna, Kim Kardashian and Lisa, helping propel the brand worldwide. Yet analysts say sustaining that popularity, or creating the next breakout intellectual property.

Looking ahead, some market watchers see opportunities beyond toys. A long-rumoured film collaboration with Sony could help expand Pop Mart’s global footprint, following the playbook of entertainment giants such as Disney and Sanrio.