Labubu's Secondary Market Premiums Create Liquidation Risk for Pop Mart

Rare Labubu variants trade at multiples of retail price on secondary markets, inflating brand heat but introducing fragility. When speculative holders liquidate en masse — a pattern seen before in Japanese and Hong Kong collectibles — secondary premiums compress sharply. That deflates downstream enthusiasm for new releases and wholesale partner appetite. Pop Mart's 2024 revenue surge depends partly on perceived scarcity and secondary-market excitement; mean-reversion risk is real.