The craze for Popmart’s hit toy Labubu propelled billionaire founder Wang Ning’s net worth past that of tech icon Jack Ma, but signs that the hype is fading are now eroding his fortune.

Wang, 38, chairman and CEO of Hong Kong-listed toymaker Popmart, previously held a fortune worth US$27.5 billion in late August, making him richer than Ma, whose net worth was $25.6 billion at the time, according to Forbes.

In recent weeks, however, Wang’s wealth has shrunk to US$21.6 billion. While still enormous, this figure is down over 20% from its peak and once again puts him below the iconic tech tycoon.

The surge and slide in his net worth both trace back to one force: the hype surrounding Popmart’s Labubu toys.

The rise of a $56 billion toy empire

Beginning in 2010 as a small shop run by then-23-year-old Wang Ning, Popmart has been particularly trending thanks to Labubu, a Nordic monkey-like forest elf with a mischievous grin.

Designed by Netherlands-based artist Kasing Lung, the "ugly-cute" character struck a chord with consumers and quickly became the company’s best-selling IP worldwide.

In China, bag-charm Labubus typically retail for 99 yuan (US$14), while larger plush versions can fetch up to 1,299 yuan. The company even offers an 80-centimeter plastic Labubu for 5,999 yuan, according to Bloomberg.

Elsewhere, the toys command an even higher premium: in the U.S., bag charms go for US$27.99 while mini figures cost about US$22.99.

Labubu shot to fame in 2024 after Blackpink’s Lisa shared photos with the toy to her 100 million Instagram followers. Fans of the K-pop star rushed to buy their own Labubu, prompting a surge in TikTok content related to the toy, including unboxing videos, and fueling a surge in global demand.

Soon, other celebrities, including Dua Lipa and Rihanna, were spotted carrying accessories featuring the character on their designer handbags.

From overnight queues and scuffles in stores, the Labubu frenzy has seen adults battling for the plush dolls and Popmart temporarily pausing sales to "prevent any potential safety issues," as reported by BBC.

The craze delivered a massive boost to Popmart’s bottom line. Sales jumped from 4.6 billion yuan in the first half of 2024 to 8.5 billion yuan in the second. In the first six months of this year, revenues climbed to 13.9 billion yuan while profit attributable to shareholders soared 397% year-on-year to 4.6 billion yuan.

In late August, the firm’s market capitalization hit a record HK$435.7 billion (US$56 billion), more than four times its 2020 IPO valuation of US$12.5 billion and up more than 250% since the start of the year, following the launch of its Labubu 4.0 series.

The newest release, featuring 28 mini Labubu plush toys in different colors retailing at 79 yuan each or 1,106 yuan for a set of 14, sold out within minutes and are still being sold at a premium on Chinese resale platforms like Dewu.

Is the hype fading?

But recent signs have pointed to a cooling in the frenzy. On Dewu, the latest Labubu toys have dropped 14.3% in price to around 150 yuan each since their August launch.

Resale premiums have also fallen on other platforms like Qiandao, with a 14-box set now averaging 1,594 yuan over the past three days, down 24% from their pre-release peak two weeks ago.

Data from Alibaba’s Xianyu marketplace shows that 50% of consumers expect the mini Labubu’s prices to decline further, suggesting buyers are losing confidence in the toy’s resale potential.

Brook Duffy, a social media researcher and communications professor at Cornell University, told Fortune that the Labubu "feels like the inevitable life cycle of something that becomes faddish, hits saturation, and then begins to fizzle."

"Once too much attention gets lavished on a trend, it immediately loses its social currency," she noted.

Falling resale prices have unnerved investors, fueling doubts about whether demand for Labubu has already peaked and sending Popmart’s shares into a steep decline.

"Amid the increasing uncertainties, investors chose to sell and take profit first," Kenny Ng, a Hong Kong-based securities strategist at Everbright Securities International, told Forbes.

The selloff deepened on Monday when JPMorgan downgraded the firm, citing a lack of new catalysts and an overstretched valuation. The bank cut its December 2026 price target for the stock from HK$400 to HK$300.

"We believe the valuation is priced for perfection and any small fundamental miss/negative media reports (i.e. resale price drop and third-party licensing) might drive underperformance," JPMorgan analysts remarked.

While Popmart’s first-half earnings and partnerships with brands like Uniqlo have delivered, JPMorgan said its upcoming bets, such as a Labubu animation series and interactive toy lines, remain untested.

Since its peak in August, the Chinese toymaker’s market value has shed nearly $13 billion, erasing about $6 billion from Wang’s net worth.

A Popmart spokesperson said the slide in Labubu resale prices stems from higher output.

"The company proactively increased product supply to align with the needs of our fans and consumers," the person said in a response to media queries.

"The fact the product was significantly more accessible and a greater number of individuals successfully purchased one is a relevant factor."

In a separate reply, the company added: "In the long term, this will be more conducive to the further development of the company’s performance."

Even with the recent setback, Popmart shares are still up more than 180% this year. Jeff Zhang, a Hong Kong–based analyst at research firm Morningstar, said growth may cool in 2026, partly because of the high comparison base set this year.

Wang in August said Popmart could "easily" hit 30 billion yuan in sales this year.

"I think for overseas markets we're still very positive, and we also believe there's still very broad space for growth," Wang said, as quoted by Reuters.

The big uncertainty now is whether Labubu can transition smoothly from a passing craze into a lasting franchise.

"The novelty is always going to wear off," Cornell University’s Duffy said. "You just don’t know when. That unpredictability is what keeps marketers up at night." (VN EXPRESS)