How a furry elf with “ugly-cute” charm became a billion-dollar icon in the toy world—and beyond.
In an era where digital avatars dominate and virtual goods fetch eye-watering prices, one of the most surprising consumer success stories of the past few years has been decidedly physical, pint-sized, and, at first glance, slightly, well, peculiar.
Meet Labubu—a wide-eyed, snaggle-toothed creature from the imagination of artist Kasing Lung, brought to life by Chinese toy powerhouse POP MART. Once a niche art figure inspired by Nordic folklore, Labubu is now a global lifestyle phenomenon, embraced by millions, from teenage collectors to A-list celebrities.
But this is more than just a story of a cute character. The meteoric rise of Labubu signals a major shift in consumer behaviour—one that blends nostalgia, mystery, digital virality, and identity-driven collecting.
The Story Behind the Smile (and Teeth!)
Labubu began life as part of The Monsters series, a collaboration between Hong Kong-based illustrator Kasing Lung and POP MART. Designed with rough edges, exaggerated expressions, and an almost unsettling cuteness, Labubu didn’t follow the rules of traditional toy design—and that’s exactly what made it stand out.
POP MART’S genius lay not just in licensing the character but in how it was marketed: through blind boxes—sealed packaging that hides which version of a toy is inside. For collectors, it’s a constant gamble. For POP MART, it’s a masterstroke.
This “mystery model” taps into something deeply psychological: the thrill of surprise, the drive to complete a set, the social cachet of uncovering a rare edition. And when that’s combined with hyper-curated aesthetics and limited-edition drops, you don’t just have a toy—you have a cultural currency.
When Viral Meets Vinyl
Much like Beanie Babies and Pokémon in decades past, Labubu’s rise is as much about community as it is about the character. But unlike those 90s icons, Labubu’s following has been fuelled by algorithms and influencers.
On Xiaohongshu, TikTok, and Instagram, unboxing videos rack up millions of views. Fans painstakingly catalogue their collections, trade duplicates, and share creative DIY modifications. A single mystery box becomes a social experience, a talking point, a digital badge of identity.
Add in celebrity endorsements—from Rihanna to BLACKPINK’s Lisa—and Labubu transcends toy status. It becomes fashion, fandom, and lifestyle all at once.
The Business of Belonging
Behind the viral videos and pop culture cachet lies a formidable business machine. POP MART, founded in 2010, has turned the art toy niche into a multi-billion-dollar global industry. Its IPO in 2020 was met with explosive investor interest, and the brand has since expanded into retail stores, vending machines, and licensed partnerships across the world.
The Labubu range now includes everything from plush toys and enamel pins to lifestyle accessories and apparel. In many ways, it mirrors the rise of Hello Kitty or Disney’s Stitch—characters that go beyond their origins to become global brand ecosystems.
But what truly sets POP MART apart is its ability to make scarcity scalable. Limited-edition Labubu figures are flipped on resale platforms for multiples of their original price, making them part toy, part investment. Labubu limited editions are currently listed on the eBay marketplace in excess of $5000. The “thrill of the hunt” becomes a resale business model.
A Collector’s Market—But Also a Cultural Movement
The most telling sign of Labubu’s rise isn’t in the financials—it’s in the emotional connection fans express. Collecting Labubu is not just about possession; it’s about identity, creativity, and connection.
Among Gen Z and millennial consumers—many of whom grew up in a world of screen-based interactions—Labubu offers something tactile and emotionally resonant. There’s a mindfulness in the collecting, a sense of play that isn’t mediated through pixels.
And crucially, there’s community. Online fan groups, in-person trading events, and customised fan art reinforce the idea that this is more than a product—it’s a shared experience.
Lessons in Retail, Reinvention, and Relevance
So what can brands learn from the Labubu craze?
- Emotion Sells: Characters that connect emotionally—even if they defy traditional beauty standards—can carve powerful brand loyalty.
- Mystery Drives Engagement: The blind box model proves that gamification, when done thoughtfully, can drive repeat purchases and social sharing.
- Social Media is the Storefront: In a world where TikTok and Xiaohongshu shape trends, product design and marketing must be intrinsically “shareable”.
- Nostalgia and Novelty Can Coexist: Labubu blends old-school toy collecting with contemporary design cues and digital behaviours. That fusion is key.
- IP is King: As Pop Mart expands its character universe, it demonstrates the enormous potential of IP—not just in content, but in product and experience.
From Counterculture to Countertop
Labubu’s success story is still unfolding. With Pop Mart continuing its international retail expansion, new collaborations on the horizon, and ever-growing fanbases in the US, Europe, and Southeast Asia, the character’s future is bright—and furry.
More than just another viral trend, Labubu represents something deeper: a desire for play, surprise, and connection in a world that can often feel automated and impersonal.
In the age of artificial intelligence and digital fatigue, a funny-faced elf from a blind box might just be the most human product of all.