The Labubu Effect: How a Blind-Box Toy Sparked a $670M Cultural Craze
Not long ago, Google search results and social feeds were the key to shaping a brand’s image. Today, fandoms, collectibles, and viral product drops can turn a niche toy into global cultural currency. One standout example? Labubu.
What Is Labubu?
Labubu is a mischievous “monster” character created by artist Kasing Lung. It first appeared in 2015 in picture books and quickly became the centerpiece of Pop Mart’s “The Monsters” IP family. Sold as plush toys, vinyl figures, and keychains—often in blind boxes—Labubu became a symbol of joyful obsession.
From March to July 2025, Brandwatch tracked 2.6 million online mentions, with daily peaks above 80,000 and more than 170,000 posts about “how to get one.” The top associated emotion? Joy.
The Business Impact
Labubu wasn’t just a trend—it was a revenue engine. In H1 2025, Pop Mart reported:
US$670M in revenue from The Monsters IP family
34.7% of total company revenue driven by Labubu products
A growing physical footprint with 571 stores and 2,597 vending machines (“roboshops”) in 18 countries
Cultural Breakthrough
Labubu transcended toys and entered fashion status territory:
A human-sized Labubu sculpture sold at Beijing auction for ≈US$150K
Celebrities like Rihanna and Kim Kardashian used Labubu as designer bag charms
These endorsements catapulted Labubu from toy to collectible to fashion accessory.
Why It Worked: The Behavioral Science Behind the CrazE
Labubu’s success followed a powerful mix of behavioral economics, scarcity psychology, and viral design:
Mystery drives curiosity: Blind boxes create emotional tension and excitement
Real scarcity raises demand: Limited supply and fast sell-outs generate urgency
Finishable collecting keeps people buying: The “incompleteness effect” motivates continued purchases
Status spreads influence: When celebrities and creators flaunt it, others follow
Challenges and Warning Signs
Even viral hits face risks:
Counterfeits: On July 24, 2025, Pop Mart sued 7-Eleven franchisees in the U.S. over fake Labubu figures
Saturation: Brandwatch noted interest plateauing in August as shipping and platform access improved
Investor confidence dipped: JPMorgan downgraded Pop Mart mid-September, citing slowing resale prices and fading scarcity premiums
Regulatory concerns: Reports highlight compulsive buying behavior and FOMO-related well-being risks in blind-box marketing
What Smart Brands Can Learn
The Labubu effect is a masterclass in designing emotional demand. Here’s how to adapt it ethically:
Use “fair mystery”: Only blind-box if your product quality is strong. Reveal odds, full collections, and offer swap opportunities.
Create real scarcity: Limit quantity, cap per buyer, and clearly state numbers to build urgency without deception.
Engineer finishable sets: Offer collectible series people can complete. Host trade hours or swap events to keep the experience social.
Blend physical and digital: Sync online drops with in-person moments to fuel content and deepen fandom engagement.
Monitor early signals: Track daily mentions, sell-through speed, and secondary prices. Refresh designs or tweak supply to maintain hype.
Protect trust: Combat counterfeits with QR codes, serials, and fast takedowns. Fakes erode value and credibility.
Insight for Brand Builders
Labubu proves that mystery + honest scarcity + finishable collecting + status can turn even a small product into a global cultural phenomenon. The formula is replicable—but only if trust and community come first.
Want to learn how to build brands that spark culture and loyalty?
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