Labubu dolls are displayed inside a Pop Mart store in Shanghai on July 19, 202

Police in Shanghai have recently busted a criminal gang involved in customizing, packaging, and selling counterfeit Labubu and other trendy toys, which were sold at 60 to 70 percent of the price of genuine products. 

The criminal gang disguised their business as a retailer of home appliances such as electric fans and audio equipment as well as games consoles, but secretly sold fanged Labubu plushies and the Crybaby figurine, claiming their products were top-quality 1:1 replica. 

According to police in Xuhui district, Shanghai, over 5,000 counterfeit trademarked products were seized. Hundreds of thousands of counterfeit figurines had been sold with the total sales revenue amounting to over 12 million yuan ($1.67 million), The Paper reported on Tuesday. 

In March this year, the economic crime investigation unit of the Xuhui branch of Shanghai Public Security Bureau received a report from a well-known toy company in the district, stating that a consumer who purchased one of the company’s popular toys online discovered it was a counterfeit. 
Professional authentication confirmed that the toy was not produced by a manufacturer authorized by the company, although its appearance and trademark were identical to the genuine version. The online store involved was suspected of selling counterfeit goods. 

After receiving the report, police immediately launched an investigation and discovered that the actual operator of the online store, a man surnamed Wang, appeared to be selling electronic products but was secretly engaged in the customized production and sale of counterfeit designer toys. 

With full knowledge of the suspect’s whereabouts and sufficient criminal evidence, police apprehended eight suspects including Wang on July 4 at his residence and company premises. 

Meanwhile, over 5,000 designer toys bearing counterfeit trademarks – either fully or partially packaged – were found stored in a warehouse beneath the company’s office building.

All of the toys were confirmed to be counterfeits through sampling and testing, according to the police’s thorough investigation. 

During interrogation, members of the criminal gang confessed that they had begun producing counterfeits without official authorization for making quick money since November 2024 after noticing the rising popularity of the trendy toy. They created 1:1 replicas based on the genuine toy models they had purchased. 

They transported the toys and packaging separately to their company’s warehouse, where the items were packaged, labeled, and boxed. 

As the main suspect, Wang has been placed under criminal detention by police on suspicion of selling goods bearing counterfeit registered trademarks. The other seven suspects have been subjected to criminal constraint measures in accordance with the law. The Shanghai police will also conduct further investigations into the upstream manufacturing enterprises and other online stores involved in the case. 

Global Times