Pop Mart is taking its best-known character to the big screen, teaming up with Sony Pictures Entertainment to develop a film centred on its Labubu dolls as the company looks to extend the life of its once red-hot collectable brand.

The project is still in early development, but it signals a clear push by the Chinese toymaker to turn Labubu into a broader entertainment franchise rather than relying solely on merchandise sales. The film is expected to blend live-action with computer-generated visuals, a format designed to appeal to a wide family audience.

British filmmaker Paul King, known for Paddington and Wonka, is attached to direct and produce, while Labubu creator Kasing Lung will take on an executive role. Producer Michael Schaefer is also involved, adding further industry weight to the project.

The move comes as signs emerge that the Labubu craze may be losing momentum. After surging in popularity globally last year, demand for the elf-like collectables has begun to soften, with resale prices falling sharply. Figures from Chinese resale platforms show some Labubu keychain products now trading at around A$21, down more than 80 per cent from their mid-year peak and even below their original retail price of roughly A$22.

Investor sentiment has also cooled. Pop Mart’s Hong Kong-listed shares slipped about 2 per cent following the announcement and remain down around 35 per cent from their peak in August.

popmart.com/au

Analysts point to changing dynamics in the collectables market, where increased production volumes have reduced the sense of scarcity that once drove demand. Some observers have also flagged signs of “fashion fatigue” among collectors, with newer releases struggling to replicate earlier success.

Despite the slowdown, Labubu remains a dominant force in resale rankings, with Pop Mart products still accounting for the vast majority of top-traded items. However, the company now faces growing pressure to deliver fresh concepts or expand its intellectual property into new formats.

The planned film represents one such strategy, aiming to reposition Labubu as a long-term entertainment property rather than a short-lived collectable trend. Whether that shift can reignite interest will likely depend on how successfully the brand translates from toy shelves to cinema screens.