Ask the Experts: Labubu

Every decade has its must-have toy. The ’80s had Cabbage Patch Dolls. The ’90s, Beanie Babies. Today’s obsession? Labubu – a mischievous, elf-meets-monster plush collectable from Chinese toy giant Pop Mart that’s taken the world (and social media) by storm.

Celebrities like Rihanna have been spotted with them. Fans camp out for new releases, chasing every design in the series. And thanks to Pop Mart’s signature “blind box” packaging, every purchase is a surprise – with the thrill of scoring an ultra-rare find.

Unsurprisingly, all that buzz has led to big business. Pop Mart is currently valued at $40 billion, with profits projected to surge 350 per cent in just the first half of 2025.

What’s fueling this global frenzy? And what can other businesses learn from it?

Zhe Zhang, Assistant Professor of Marketing at Ivey Business School, unpacks the global phenomenon in Impact’s Ask the Experts.

1. How would you describe the Labubu brand identity? What sets it apart in the crowded designer toy market?

Labubu’s brand leans heavily into what marketing psychology calls ‘whimsical cute’ – a style that is unique, playful, mischievous, and even a little weird. With a tone that feels more grown-up, it naturally attracts a broader demographic. Yet, it also borrows lightly from ‘kindchenschema,’ or ‘baby schema,’ adding subtle newborn-like features that suggest sweetness and care.

It’s the dominance of whimsical cute in this mix that gives Labubu its signature appeal. It’s sweet, yet quirky, and this makes it distinct – and highly desirable – in the competitive designer toy market.

2. Is Labubu’s charm rooted in its appearance, or in a deeper connection with its fans?

Labubu’s whimsical cuteness isn’t just about appearance, it’s about the feelings it evokes. Playful, mischievous, and a little rebellious, its distinct personality mirrors what many consumers – especially younger generations – aspire to: standing out from the mainstream and expressing their individuality. Owning a Labubu is more than having a toy; it’s a statement about who you are and that you’re different.

It also taps into nostalgia, wonder, and curiosity – the feelings tied to childhood play, imagination, and fantasy, which is exactly what toys are meant to inspire. This isn’t new in marketing. In the 1970s, Pet Rock became a viral hit (earning $6 million profit in just a few months, 50 years ago!) by transforming something as simple as a rock into an imaginative experience, taking consumers on a fantasy ride by offering them a playful escape from the hassles of everyday reality.

Like Pet Rock, Labubu isn’t just a product, it’s an experience that fulfills deeper psychological needs. And with its Asian, modern, and distinctive aesthetic, it has also become a statement of fashion, personality, and even social status – the kind of cultural currency that fans cannot get enough of.

3. What marketing strategies have been most effective in Labubu’s rise?

Labubu’s rise comes down to a few smart strategies.

First, design differentiation. Its distinctive, offbeat look sets the tone for the entire product line.

Second, how consumers acquire the product: the blind mystery box. Instead of a straightforward sale, Pop Mart sells an experience built on surprise and scarcity. You “play” for the chance to get your favorite design, with limited editions, like ‘Bad Boy,’ playing hard to get, driving urgency, and repeat purchases – it’s addictive.

Labubu also recognized early that winning over its audience meant living online. Fans amplified the brand by creating unboxing videos, swapping tips, trading collectibles, and sharing the excitement of new releases.  This online ecosystem has evolved beyond marketing; it’s about discovering a community and a sense of belonging, which is as valuable as owning the toys themselves.

Finally, tactical consistency. Every touchpoint, from design and packaging to purchasing and post-consumption, conveys and reinforces the brand’s whimsical and rebellious identity, transforming a simple toy purchase into an ongoing unique “fantasy journey” for fans.

4. Labubu has a strong following in Asia, especially in China. What cultural or market-specific factors contribute to their appeal in that region?

Labubu’s roots run deep in Chinese culture; it’s made in China and inspired by Chinese characters. Its rise perfectly aligns with a growing cultural confidence in the country, as consumers increasingly embrace homegrown stories and icons over Western imports like Disney.

The blind mystery box concept is another perfect fit for the market. Growing up in China, I remember buying snack bags not for the food, but for the collectibles inside – chasing the thrill of finding and showing off the rare ones. That excitement of uncertainty, anticipation, and surprise remains hugely popular today.

Social media is equally important. In China, it’s embraced by all generations, making Labubu’s online-first marketing strategy highly effective across age groups.

Finally, China’s expanding middle class is eager to express personality, status, and uniqueness through their purchases. Limited editions and complete collections signal affluence, making Labubu both a personal statement and a status symbol.

5. What lessons can other brands learn from Labubu’s rise?

First, differentiation matters. It’s not about making a similar product at a better price, it’s about creating something people truly want and value.

Second, build a brand community. Many successful brands do this well, and Apple is a prime example. Apple’s iconic cultural status and social signaling utility, combined with its ecosystem, cultivate a sense of belonging that drives customer loyalty. If your friends and family all have iPhones and you don’t, you feel left out. That social pull can be instrumental in driving purchase decisions.

Finally, pay attention to cultural trends. Labubu capitalized on China’s “mystery box” craze and the shift toward social media by investing in digital engagement. They met consumers where they already were, and it paid off.

Zhe Zhang is an Assistant Professor at Ivey Business School, where he teaches marketing courses in the School’s undergraduate, master’s, and doctoral programs. An award-winning and prolific researcher, Zhang is recognized for pioneering the scholarly research on brand nicknames, nickname branding, and nicknaming in organizational management.