The Rise of the Dual Empire of Hong Kong Stock Trend Toys King and Meme Coin New Star: Labubu

Labubu is not only popular in the physical toy market but has also sparked an investment frenzy in the virtual world, becoming a global cultural symbol.

Written by: Oliver, Mars Finance

In the financial market in 2025, the resonance of Hong Kong stocks and Meme coins has become a unique landscape. On May 27, Bubble Mart (9992. HK) share price climbed to a record high of HK$229, up as much as 155% for the year, and its market capitalization once exceeded HK$300 billion. At the same time, the market capitalization of the Solana eco-meme coin based on its IP Labubu exceeded $45 million$LABUBU up 58.85% in 24 hours. This sharp-eared, fanged, smiling Nordic forest elf has not only set off a rush to buy in the physical toy market, but also ignited investment enthusiasm in the virtual world, becoming a super symbol connecting culture and capital. How does the rise of Labubu propel Pop Mart from a Chinese toy brand to a global cultural giant? What kind of new consumption picture does the capital logic and cultural narrative behind it reveal?

The Frenzy of Meme Coins: Labubu's Virtual Journey

As the bellwether of the crypto market in 2025, the total market capitalization of the meme coin will skyrocket from $20 billion to $120 billion in 2024, an increase of 500%. Although $LABUBU is not officially released by Pop Mart, it has quickly become a star project in the Solana ecosystem based on Labubu's global IP popularity. On May 27, the $LABUBU market capitalization briefly touched $45 million, and it is now trading at $40.6 million, with a 24-hour trading volume of $9.5 million. The fission-like spread of social media is the core engine of its explosion. From Thailand's princess Sirivan hanging Labubu on a Hermès platinum bag, to BLACKPINK member Lisa posting a photo on Instagram, to David Beckham sharing his daughter's Labubu bag hanging, the elf has frequently appeared in celebrity social circles and sparked a global imitation craze.

In Thailand in particular, Labubu has become a cultural icon. In 2024, the Tourism Authority of Thailand conferred on him the title of "Magical Thailand Experience Officer" and held a grand welcome ceremony with the Minister of Tourism and Sports in person. Labubu clothing, tattoos and even bespoke merchandise are popping up on the streets of Bangkok, highlighting its appeal as a symbol of trendy culture. This cultural influence quickly spread to the crypto market, with well-known crypto influencers such as Ansem resonating with the community when they released Labubu-related content through Platform X. According to Holderscan data, since May 14, the number of $LABUBU token holding addresses has increased by more than 30%, showing the continued growth of market participation and community enthusiasm.

However, the high volatility and potential risks of meme coins cannot be ignored. On May 26, Pop Mart issued a statement through the X platform, making it clear that it has never issued any meme coins, and warned users to be vigilant against scams and reserves the right to pursue legal responsibility. Still, the $LABUBU craze hasn't cooled down. Successful cases of unofficial meme coins like Chillguy, Pnut, etc., incentivize investors to bet on $LABUBU. Bubble Mart founder Wang Ning's philosophy of "useless is useful" – "if we make dolls useful, sales will definitely decline" – coincides with the emotion-driven logic of meme coins, attracting Gen Z to chase the symbolic value of Labubu in the virtual world. Regulatory risk will be a key variable going forward, with the SEC warning against the promotion of unregistered meme coins, and the ongoing $LABUBU boom may face compliance challenges.

The Vast Ocean of Hong Kong Stocks: Pop Mart's Global Ambitions

Echoing the virtual carnival of Meme coins, Bubble Mart's performance in the Hong Kong stock market is equally dazzling. In the first quarter of 2025, the company's revenue increased by 165% to 170% year-on-year, far exceeding market expectations, with the Chinese market growing by 95% to 100% and the overseas market surging by 475% to 480%. J.P. Morgan covers Pop Mart for the first time, gives an "overweight" rating, a target price of HK$250, and forecasts overseas sales to grow by 152% year-on-year in 2025, with a compound annual growth rate of 42% from 2025 to 2027, and overseas revenue will account for 65% of total sales by 2027. Goldman Sachs, BofA Securities and other institutions have also raised their target prices, generally optimistic about Labubu's global demand and Pop Mart's overseas strategy.

Labubu's success is based on product innovation. In 2024, Labubu's THE MONSTERS series contributed 3.04 billion yuan in revenue, a year-on-year increase of 726.6%, accounting for 23.3% of the company's total revenue. At the heart of this is a breakthrough in the process of "plush plush": by combining the delicate face of vinyl with the soft touch of plush, Labubu not only retains the identity of the IP, but also evolves from a static figure to a "bag hanger" that can be carried around. This innovation gives Labubu a dual identity: it is both a collectible item and a "social currency" that expresses its personality and presence. At the Bangkok Night Market, players exchange hidden Labubu for luxury bags; At Harrods London, collectors trade Hermès Kelly bags for rarities; At the Coachella festival in Los Angeles, fans trade Labubu for passes. This phenomenon of bartering highlights Labubu's unique appeal as a global cultural icon.

Pop Mart's globalization strategy further amplifies Labubu's effect. In 2024, the company's overseas revenue will reach 5.07 billion yuan, a year-on-year increase of 375.2%, accounting for 38.9% of total revenue. The Southeast Asian market contributed 2.4 billion yuan, a year-on-year increase of 619.1%, accounting for 47.4% of overseas revenue. In the first quarter of 2025, the Asia-Pacific market grew by 345% to 350% year-on-year, the Americas market grew by 895% to 900%, and the European market grew by 600% to 605%. The company plans to double the number of stores in the U.S. to 50 by 2025, targeting Times Square and Fifth Avenue in New York. On April 14, 2024, Wang Ning issued a letter to all employees, announcing the establishment of four regional headquarters in Greater China, the Americas, Asia Pacific, and Europe to optimize resource allocation and improve global operational efficiency. The Pop Mart app topped the U.S. App Store shopping charts, soaring to fourth place on the free list, demonstrating Labubu's global appeal.

The Ups and Downs of Capital Markets and the Longevity Code of IP

The path of Pop Mart's share price has been dramatic. From the market value of 100 billion yuan when it was listed in 2020, to the trough of 9.8 Hong Kong dollars in 2022, and then to exceed 300 billion Hong Kong dollars in 2025, the company has experienced repeated baptism in the capital market. In 2024, Labubu's boom has pushed the stock price to new highs, but the reduction of holdings by early-stage investors has sparked heated discussions in the market. Bee Qiao Capital liquidated 11.91 million shares and cashed out 2.11 billion yuan, saying that it withdrew due to the maturity of the fund. Tu Zheng, founding partner of Bee Qiao Capital, posted on the X platform with emotion: "From angel wheel to clearance, I have accompanied Bubble Mart for 14 years, and the process has been magnificent." In addition, Wang Ning indirectly holds shares through GWF Holding and Pop Mart Hehuo Holding Limited, and the shareholding ratio decreased from 50.34% to 48.73% after the reduction on October 24, 2024, and the shareholding value is still close to HK$80 billion. This high-level reduction raises investors' concern: Can the Labubu craze continue? How does Pop Mart maintain IP vitality after the traffic ebbs?

Wang Ning has already responded to this: "Many people think that Labubu is born out of nowhere, but 2026 is its 10th anniversary, and 2027 is the 20th anniversary of Molly. IP has a very long lifecycle, and we're probably one of the longest-lived companies." Pop Mart's IP matrix strategy provides solid support for it. In 2024, the top five IPs (Labubu, Molly, Skullpanda, Crybaby, Dimoo) will contribute a total of more than 8.5 billion yuan in revenue, accounting for 65% of total revenue. Among them, Crybaby became the fastest IP to break 1 billion with a growth rate of 1537.2%, and Skullpanda and Dimoo contributed 1.52 billion yuan and 1.28 billion yuan respectively. 13 IPs, including DIMOO WORLD, HIRONO, and Zsiga, also exceeded the 100 million yuan mark, showing the company's profound skills in IP incubation.

Pop Mart's IP longevity password lies in its accurate grasp of "emotional value". Labubu's success stems not only from product design, but also from its role as a vehicle for Gen Z's identity and self-expression. In 2024, more than 100,000 blind boxes jointly launched by the company and "Nezha 2" will be sold, and it is expected to further increase the revenue of licensed IP in the first half of 2025. The Western Securities Research Report pointed out that Pop Mart has built a strong brand barrier through IP matrix and category expansion. In 2024, the revenue of the figure category will be 6.94 billion yuan, a year-on-year increase of 44.7%, and it will still be the largest category; The revenue of the plush category soared by 1289% to 2.83 billion yuan, becoming the explosive product of the year. This diversified layout not only disperses the risk of a single IP, but also continues to expand its market influence through the two-wheel drive of "offline experience + online reach".

From Trendy Toys to Cultural Economy: Labubu's Dual Narrative

The success of Labubu reflects the cultural and economic logic shared by trendy toys and Meme coins: both are centered around emotional value, rapidly breaking into the mainstream through the viral spread on social media and community recognition. On TikTok and Instagram, unboxing videos, outfit pairings, and "doll walls" under the hashtag #Labubu have attracted millions of fans, with some accounts gathering millions of followers in a short period. Google Trends shows that in May 2025, the global search popularity of Labubu far exceeded that of Meme coin-related IPs like PEPE and DOGE, highlighting its status as a global cultural symbol.

Labubu has evolved from a single trendy toy to a "social currency". In 2024, the "Forward High Energy" series of blind boxes will be released globally, and domestic e-commerce platforms will be sold out in seconds, with stores in Chicago, London, Harajuku, Tokyo and other places queuing up all night. The original price of 99 yuan for the ordinary model has a premium of 10% to 200%, and the hidden model is as high as 2300 yuan, a premium of more than 20 times. At the Bangkok Night Market, players exchange hidden Labubu for luxury goods; At Harrods London, collectors trade Hermès Kelly bags for rarities; At the Shanghai Trend Show, players traded three iPhone 14 Pros for hidden models. This phenomenon of "bartering" not only validates Labubu's collectible value, but also pushes it to the status of an "alternative financial management tool". $LABUBU's meme coin craze has further amplified its cultural influence, and despite its unofficial issuance, it has become a highlight of the Solana ecosystem due to the global appeal of the IP.

Pop Mart's channel innovation also provides support for its cultural output. In 2024, 38 new stores will be added in Chinese mainland to 401, and the number of robot stores will reach 2,300; Among the online channels, the revenue of the Douyin platform increased by 112.2%, and the performance of overseas e-commerce was even stronger, with the official website revenue increasing by 1246.2%, and the revenue of the TikTok platform soaring by 5779.8%. This model of "offline experience + online reach" not only enhances consumer stickiness, but also promotes Labubu to the vision of young people around the world through the fission of social media.

Future Outlook: Opportunities and Challenges Coexist

The craze for Labubu has brought unprecedented growth momentum to Pop Mart, but the challenges ahead cannot be ignored. The high base effect may lead to a slowdown in subsequent growth, and the cost pressures of overseas expansion are also increasing. The regulatory risks in the meme coin market are equally critical, as the SEC has warned against promoting unregistered meme coins, and tightening regulations in the future may affect the trading environment of $LABUBU. In addition, maintaining the IP popularity after the traffic recedes is a problem that Pop Mart must address.

However, the opportunities are equally significant. In 2024, the company will launch new categories such as the "Dream Home" game and collectible cards, showcasing the potential for category expansion. JPMorgan predicts that the application of voice recognition and augmented reality technologies will enhance the interactivity of trendy toys. A report from Western Securities indicates that Pop Mart's revenue is expected to grow by over 50% by 2025, with overseas growth exceeding 100%, and plans to open 100 new stores, targeting markets like Mexico and Canada. The success of Labubu proves the company's core competitiveness in IP operation and global layout, and its universal cultural value provides ample space for global expansion.

Conclusion

From the 100 billion market value of Hong Kong stocks to the 10 million dollar boom of meme coins, Labubu connects the physical and the virtual as a forest elf, igniting the enthusiasm of young people around the world. With 15 years of accumulation, Pop Mart has proved that trendy toys are not just a short-term fad, but a long-term track that carries cultural and emotional values. The co-operation of Hong Kong stocks and meme coins is not only a carnival in the capital market, but also a microcosm of the cultural economy of Generation Z. In the future, can Bubble Mart continue to ride the waves, and can Labubu become the next Hello Kitty? Time will tell.