Labubu maker sees sales soar after launch of mini version of toy

Pop Mart, the maker of the hugely popular Labubu dolls, says its sales have surged after the launch of mini versions of the monster-themed toys in August.

The Chinese firm says its global revenue for the three months to the end of September jumped by about 250% compared to a year earlier.

Sales outside of China helped drive the increase with revenue in America up by more than 1,200%, while in Europe they rose by over 700%.

The figures build on a recent streak of strong sales for Pop Mart. Its shares gained more than 5.5% in Hong Kong on Thursday, giving it a stock market value of about $45.5bn (£34bn).

Pop Mart is best known for selling toys in "blind boxes" - a type of packaging that conceals its contents until it is opened. The marketing method has been criticised for encouraging gambling-like behaviour and compulsive buying.

Collectors have been obsessed with Labubus - the fictional elf-like creatures with a row of jagged teeth - which have sparked long queues in shops worldwide.

Labubu has taken off, especially in the US, thanks to celebrity endorsements by including celebrities like Kim Kardashian and Lisa from K-pop group Blackpink.

Partnerships with major names such as Coca-Cola and the manga franchise One Piece have also helped to boost Labubu's profile around the world.

Launched in 2019, Labubu dolls have helped Pop Mart become a major retailer, operating more than 2,000 vending machines and stores around the world.

The company began selling its shares on the Hong Kong Stock Exchange in 2020, with their price has risen by more than 280% since then.

Pop Mart's shares had dipped in recent weeks over concerns raised by the likes of Wall Street investment bank JPMorgan that it was overvalued and that the firm would be unlikely to sustain the popularity of its toys.