Shanghai authorities have uncovered and dismantled a sophisticated counterfeit operation manufacturing and distributing fake Labubu plush toys and Crybaby figurines, popularly sold at roughly 60–70% of authentic retail prices. The bust involved a warehouse in Shanghai’s Xuhui district where over 5,000 counterfeit items, valued at approximately US $1.7 million (or 12 million yuan), were seized. Eight individuals—including the alleged mastermind surnamed Wang—have been taken into custody.
The case came to light in March 2025 when a suspicious purchase prompted a consumer to report a suspected counterfeit to a licensed toy retailer. That tip led to an investigation revealing a front electronics store selling fans, speakers, and gaming consoles that was secretly running a counterfeiting operation. Investigators found evidence of reverse-engineering: real Pop Mart dolls purchased and analyzed, components imported separately, then assembled in-house. The ring reportedly began operations in November 2024.
This crackdown is far from isolated. Across China, customs officials have been engaged in large-scale seizures of counterfeit Labubu merchandise. In early and mid‑2025, over 46,000 fake Labubu toys—nicknamed “Lafufu” by fans—were confiscated at key checkpoints, including Zhuhai’s Hong Kong‑Zhuhai‑Macao Bridge, Ningbo, and Shanghai Pudong Airport. The fakes ranged from blind‑box toys to plush figures and keychains, all infringing Pop Mart’s trademark rights.
In June, customs in Guangdong discovered 20,599 counterfeit products in outbound trucks. Nearly simultaneous inspections at Ningbo yielded 20,240 items, and Shanghai Pudong officers seized 5,961 counterfeit toys falsely declared under generic descriptions.
Beyond volume, authorities highlight telltale differences between real and fake Labubu dolls. One such clue is the tooth count: genuine figures always display nine sharp teeth, while counterfeits typically have seven or eight, due to mold imperfections. Chinese customs published a viral campaign titled “Customs vs. Fake Labubu” to educate the public.
The obscene popularity of Labubu toys has generated massive value for Pop Mart. In the first half of 2025 alone, the company saw a projected 200% boost in revenue, with profits up 350%, driven largely by what has become a global phenomenon. Some limited‑edition dolls have even sold at auction for over 1.08 million yuan (US $150,000).
This surge, however, has created fertile ground for counterfeiters and scalpers. Analysis from People’s Daily warned that “outlaws” are exploiting the hype, hoarding rare items and mixing authentic and fake dolls in resale markets, disrupting fair access and harming both brand integrity and consumer trust.
Collectors and parents alike face a dilemma: official Labubu products retail at around $30–$40, but counterfeit “Lafufu” versions are available online for as little as $10—tempting, albeit fraudulent. Many buyers end up prioritizing price and aesthetic appeal over authenticity. One bewildered parent in Shanghai remarked: “Most kids just want the doll. They don’t care if it’s official or not.”
Pop Mart, creator of the iconic plush mascot by designer Kasing Lung, has responded by urging consumers to buy only through official channels and is cooperating with authorities as legal proceedings continue. Investigations are ongoing into other suppliers and online platforms implicated in the counterfeit trade.
This incident underscores a broader battle being waged across industries reliant on limited‑edition collectibles: as consumer demand surges, so too does the appetite for fake goods, challenging the enforcement of intellectual property rights and integrity of the global resale ecosystem.
