Pop Mart Shares Slide Over 5% After Livestream Sparks Backlash on Product Pricing

Pop Mart International Group, known for its hit Labubu toy series, saw its stock drop over 5.5% on Friday to the lowest level since May after a livestream incident stirred online debate about its pricing. The controversy began when a Pop Mart employee appeared to question the value of a 79-yuan ($11) blindbox phone chain during a live broadcast, prompting heated discussion on Chinese social media platforms Weibo and Xiaohongshu.

Many users criticized the company’s high markups, while others defended the employee’s honesty. Pop Mart later said it is investigating the situation, according to a statement to Bloomberg News.

The backlash coincides with signs of cooling demand in the secondary market for Pop Mart’s popular Labubu collectibles. Data from trading platform Qiandao showed average resale prices for a 14-piece Labubu set have fallen 16% in the past month, dipping below retail value.

Analysts at Goldman Sachs said the decline reflects increasing supply and aggressive monetization, which have pressured secondary market premiums for collectible toys. They noted that frequent price tracking continues to shape sentiment toward intellectual property-driven consumer brands.

Pop Mart shares have already lost about 38% since late August, as investors grow concerned about slowing demand and whether the company can replicate Labubu’s success with new characters. Bernstein analysts expect Labubu’s popularity to peak around 2026 or 2027, warning of risks tied to overreliance on a single brand.

Still, Morgan Stanley noted that another Pop Mart creation, Twinkle Twinkle, is showing strong consumer interest but currently faces product shortages.