Popularity of Fake ‘Labubu’ Dolls in the US
Amid the craze for China’s original “Labubu” dolls, their counterfeit versions, known as “Lafupu,” are gaining popularity, especially in the United States. Consumers are showing preference for these fakes, with some even finding them more appealing. Social media buzz suggests that some people find the counterfeits cuter and feel no shame in owning them.
The growing interest in these replicas is causing headaches for Chinese toy manufacturer Pop Mart, who holds the intellectual property (IP) rights to Labubu. Reports indicate that the prevalence of counterfeits like Lafupu is highlighted in public spaces more often than the genuine articles.
US Consumers Unashamed of Counterfeit Purchases
Pop Mart’s revenue is projected to surpass 30 billion yuan (approximately 5.81 trillion won) this year, with sales in the Americas alone skyrocketing by over 1000% compared to the previous year. Their unique marketing approach, featuring limited-item shortage, low-priced blind box sales, and celebrity endorsements, pulls customers in. However, the swift rise of this trend suggests it could end just as quickly.
Counterfeits remain a significant concern, as they undermine the brand’s IP, causing revenue losses. Analysts point out that while global brands like Disney and Sanrio have a long history of leveraging IP, Pop Mart is still building its track record.
Interestingly, many buyers of fake Labubu dolls don’t feel embarrassed about not owning the authentic product. This hints at a lack of brand loyalty or devotion to owning the genuine article, coupled with the influence of social media on reducing purchase shame.
China’s Irony in IP Enforcement
While cracking down on counterfeit items, China’s customs authorities and Pop Mart are launching robust legal actions, including suits against certain California 7-Eleven stores for selling fake Labubu dolls. This is ironic considering China’s past actions of promoting counterfeit goods imported from Western countries.
According to the OECD, as of 2021, China accounted for 45% of the world’s detected counterfeit goods. The country has faced criticism for unauthorized use of foreign IPs, such as those from Netflix, to gain local market advantages.
Analyst Jeff Zhang noted that increasing Pop Mart’s production might reduce counterfeit rates. However, this could also decrease product scarcity, potentially diminishing their value. While Pop Mart is yet to fully establish a loyal customer base, projections indicate significant growth potential outside China by 2034.
Marketing analyst Mark Tanner adds that Chinese companies are outpacing Western competitors with rapid product innovation. Pop Mart’s appeal to Gen Z, who often shop via TikTok algorithms, demonstrates the brand’s strategic reach. Consequently, Pop Mart’s stock has seen a 590% increase within a year.