Labubu is restocking its stock, fans are celebrating but the stock price is plummeting?

Hey, fellow Labubu fans and trendy toy enthusiasts! Have you been flooded with Labubu restock news recently? That's right, the cute elf that we both love and hate is back! It seems that overnight, the popular items that once required "hand speed + luck" to grab have suddenly become much more within reach. Everyone is ready to "take the baby home", this is definitely a carnival moment for players!

However, just as we were immersed in the joy of "buying, buying and buying", the capital market gave a slightly calm and even a bit "cold water" response: the stock price of Pop Mart, the company behind Labub, fell!

Is this phenomenon a bit confusing? Manufacturers are actively replenishing stocks to meet market demand. Shouldn't everyone be happy and the stock price should rise? Behind this, there is actually a unique operating logic of the trendy toy market:

• The "scarcity" curse is temporarily lifted? One of the core charms of Labub lies in the limited sense and scarcity of some of its products. This scarcity drives the popularity of the secondary market and supports the brand premium. Large-scale replenishment, especially the replenishment of popular models, quickly increases the supply in the short term and dilutes this scarcity. Investors may worry: Does this mean a change in brand strategy? Is the "hunger marketing" model that has long been relied on for survival broken? Will the expectation of future product value preservation decline?
• Concerns about market saturation and future growth: Does such a strong replenishment mean that the target market is close to saturation in the short term? When popular models that "everyone has one" become common, will it affect consumers' enthusiasm and purchasing power for the next round of new product releases? Investors look not only at the current sales data, but also at the brand's future growth potential and continuous innovation capabilities. Large-scale replenishment behavior may be interpreted as tapping the short-term value of existing IPs rather than opening up new growth points, thus causing concerns about long-term growth momentum.
• Dilution of the “sense of surprise”: A large part of the driving force behind trendy toy consumption comes from the sense of surprise of “opening a blind box” and the satisfaction of owning a scarce item. When popular items become easily available, this sense of surprise and social currency attributes may weaken. Investors will think: Will this affect the core appeal of the brand, and in turn affect consumers’ repurchase willingness and loyalty?

But what does it mean for us players?

Don't panic! Short-term fluctuations in stock prices are the capital market's immediate response to information and a comprehensive reflection of complex factors. They are not directly equivalent to the "decline" of the brand or the disappearance of IP value. For our players, this big restock is definitely a real benefit:

• The chance to realize your dream has increased greatly: Labubu, who was once missed, now has the opportunity to buy it at a relatively reasonable official price!
• A healthier market: Increased supply helps combat malicious hoarding and excessive secondary market prices, allowing more players who really like Labubu to benefit.
• Official channels are more reliable: Buy directly through official or authorized channels to ensure authentic products.

As we have always believed, the best way to love an IP is to own it and enjoy the happiness it brings. Whether it is a newly purchased restocked item or a long-standing classic Labubu, pairing them with unique accessories can better highlight your personality!

The large-scale restocking and falling stock prices of Labubu manufacturers are like a mirror of the trendy toy market, reflecting the delicate balance between "scarcity", "growth expectations" and "player satisfaction". For the company, this is a question that requires wisdom and foresight to answer. But for the majority of us players, being able to embrace what we love more easily is the most joyful thing at the moment! Seize the opportunity of restocking, bring your Labubu elf home, carefully select and match it, and enjoy the pure fun of collecting! After all, passion is the eternal value of trendy toys.