by SONG Jianan

China's Yiwu city has launched a swift crackdown on counterfeit Labubu toys, removing large volumes of unlicensed products from shelves overnight, following a surge in copycat manufacturing of the viral character created by Pop Mart.

Local media outlet Jiupai News reported that the Yiwu market regulator confirmed on June 10 that the production and sale of Labubu products require official authorization. Authorities said they have consistently taken a hard line against piracy and that large-scale violations could be referred to the police. The bureau also encouraged the public to report any known counterfeit activity.

Labubu's explosive popularity has led to chronic shortages both online and offline, fueling a grey market for imitations. Two types of copycat products emerged: "high-quality replicas" priced between 30 and 60 yuan each, and "Yiwu-quality" versions sold for 20 to 30 yuan. In some cases, wholesale prices for knock-offs even exceeded Pop Mart's official retail price of 594 yuan per box for the Labubu 3.0 series.

Despite the illicit nature, strong demand has strained even counterfeit supply chains, with some unauthorized factories reportedly struggling to meet orders. Amid tighter enforcement, many sellers have shifted to producing doll outfits resembling Labubu instead.

Dongguan in Guangdong province remains the primary production hub for the official Labubu figures, housing over 4,000 toy companies and 1,500 supporting suppliers. The city reportedly handles 70% of Labubu's manufacturing.

The IP has also gone global. In the United States, fans queued as early as 3 a.m. in Los Angeles to secure new drops. In the United Kingdom, a store launch in London triggered scuffles that led Pop Mart to suspend local sales. The character was named a "Magical Thailand Experience Officer" in Bangkok, where a themed store’s opening day sales surpassed 10 million yuan. Celebrities including Rihanna and David Beckham have posted photos with the figure, further fueling its viral appeal.

Labubu's commercial success has transformed Pop Mart's financials. Revenue from its THE MONSTERS series jumped 726.6% year-on-year in 2024, making it the company's top-grossing IP.

On resale platforms, prices have surged: the 594-yuan box set of Labubu 3.0 now sells for as much as 1,800 yuan, with rare single figures fetching 250 to 460 yuan. The hidden variant "Id" commands nearly 3,000 yuan, while co-branded items like the Labubu x Vans sneaker—originally 599 yuan—averaged 13,070 yuan in recent secondary market sales.

The frenzy hit new heights this week when a one-of-a-kind mint green Labubu standing 131 cm tall was auctioned at Yongle's 2025 Spring sale for 1.08 million yuan. A rare brown version, limited to 15 units globally, fetched 820,000 yuan.

Pop Mart's founder Wang Ning has seen his personal fortune rise alongside Labubu’s meteoric ascent. On June 8, Forbes' real-time billionaire ranking placed his net worth at US$20.3 billion (146.7 billion yuan), making him the richest person in Henan province.

Pop Mart's Hong Kong-listed shares closed 3.19% higher at HK$258.80 on Tuesday, giving it a market capitalization of HK$347.6 billion.