The Labubu Phenomenon: How a Toy Became a Global Movement

What began as a simple character within the ‘Monsters’ toy line, created by artist Kasing Lung, has rapidly evolved into one of the most coveted collectible figures in the world. The name of this toy line is ’Labubu’: a creature with elf-like and monster features, pointy ears, oversized eyes, and a peculiar smile that reveals exactly nine teeth. Its design—charming yet strange—has divided opinions… and, interestingly, that seems to be the secret to its success.

What started as just another edition in the ’Monsters’ series quickly became a viral pop icon, driven by a marketing strategy rooted in mass psychology, planned scarcity, and cultural nostalgia.

The concept of the ’blind box’ was key to its rise: each box contains a random figure, leaving consumers unaware of the specific item inside. This not only drove repeat purchases in pursuit of rare editions (with 1-in-72 odds), but also fuelled a parallel resale market, where select figures fetch thousands of dollars.

Currently, there are over 300 different versions of Labubu, with prices ranging from $15 USD for basic 3-inch figures to $170,000 USD for ultra-limited edition statues. This wide product range has allowed Pop Mart to connect with both children and adult collectors or luxury buyers, positioning Labubu as an intergenerational object of desire—all thanks to a well-crafted marketing strategy.

The brand has rapidly expanded outside of China, with more than 500 company-owned stores and 90 locations in the United States, many of them in the form of smart vending machines that enhance the product’s playful appeal.

But beyond marketing, the Labubu phenomenon reflects a shift in how younger generations engage with products: they prioritise immersion, customisation, exclusivity, and belonging. For attentive investors, this isn’t just a fad—it’s an indicator of the type of products that capture the modern consumer's attention.

Hype vs. Fundamentals

Labubu’s cultural impact could be mistaken for sensationalist hype, if not for the impressive figures backing it up. Pop Mart, Labubu’s s distributor, went public in 2020 on the Hong Kong Stock Exchange with a valuation of $6.9 billion USD, rivalling giants like Mattel and Hasbro. But 2025 is when its growth truly exploded.

In the first half of this year alone, Pop Mart reported:

• A 200% increase in total revenue.
• A 350% increase in net profits.
• A +169.87% surge in its stock price.

The most revealing data point for traders: Labubu now accounts for 23.5% of the company’s total revenue, indicating a significant dependency on a single product. This is a highly relevant detail for long-term investors. Why? Because if it turns out to be just a passing trend, that percentage could quickly be impacted in the coming years.

Most of the sales (over $1.1 billion USD of the $1.8 billion total in 2024) come from China, where the craze is still very much alive. However, this heavy reliance on the Chinese market has begun to raise concerns. Despite strong earnings, Pop Mart’s stock fell by 4.89% on 16 July after announcing 350% profit growth and 200% revenue growth, which analysts interpreted as a sign of overvaluation.

Currently, Pop Mart trades at a price-to-sales ratio of roughly 6x, far above peers like Mattel at 1.5x, reflecting strong investor optimism but also raising questions about whether such valuation levels can be sustained. While this 6x premium may seem excessive, it underscores the confidence—or speculative enthusiasm— investors place in the company’s business model.

For analysts, Labubu has become both an emotional and financial barometer: when sales accelerate, it signals consumer optimism in China and other emerging markets. When they slow, it may be a warning of cooling sentiment and potentially the end of a temporary trend.

Beyond Plastic: Brand Strategy in an Age of Emotional Consumption

The Labubu line is not just a toy, nor merely a speculative asset. It reflects a trend towards emotionally driven consumption, characterized by curated experiences and a growing appetite for exclusivity. It’s also a case study of the power of storytelling in brand valuation, and how a 3-inch figure can move billions in capital with a well-executed marketing strategy.

For fans, Pop Mart sells more than toys — it sells identity, status, and the thrill of belonging. And as such, Labubu’s real value lies not only in plastic and paint, but in its ability to reflect the cultural and economic pulse of the moment. Labubu’s rise shows that nostalgia and exclusivity can drive billions in value — but sustaining that magic may be Pop Mart’s biggest challenge yet.