How Labubu dolls became a global status symbol and generated $423 million in revenue for its company last year

We cover Insights on Labubu's business and economic impact, exploring the brand’s strategy, international expansion, distribution channels, pricing tactics, and role in collectible economics. In cities around the world, fans queue for hours—or even overnight—to buy the latest Labubu toy. This “ugly-cute” plush figure, designed by Hong Kong artist Kasing Lung, has taken on a life of its own. Pop Mart, the Beijing-based toymaker behind Labubu, reports that its total sales doubled to ¥13.04 billion ($1.81 billion) in 2024, propelled in large part by Labubu’s popularity. Industry observers note that roughly US$423 million of that revenue came from Labubu sales alone. In Chicago, for example, dozens of customers lined up outside a Pop Mart store to grab the new “Big Into Energy” Labubu blind boxes. Reporters even titled a segment “Long lines for Labubu collectible toy” as eager fans clutched two of the dollar‑priced dolls. The frenzy has made Labubu a byword for the new collectible-toy craze.

Pop Mart’s Business Strategy: Blind Boxes and Original IP

Pop Mart’s meteoric growth is rooted in a shift from multi‑brand retail to original “IP+blind box” toys. In 2019 founder Wang Ning began licensing Labubu and other characters from independent artists, then selling them exclusively in sealed mystery “blind boxes.” As one analysis notes, Pop Mart “pivoted to developing and selling its own original intellectual properties through the ‘blind box’ model,” a strategy that unlocked explosive growth. This model taps into surprise and collectibility: buyers don’t know which Labubu variant they’ll get until they open the package, creating a treasure‑hunt excitement. Industry observers describe blind‑box buying as a “powerful blend of surprise, gamification and collectibility” that especially hooks Gen Z and adult collectors. In effect, Pop Mart turned inexpensive toy purchases into an engaging experience, then amplified it with smart marketing.

A key to Pop Mart’s approach is positioning Labubu as more than a toy. TIME magazine reports that Pop Mart “distinguishes itself … in reading the mood of its consumers,” selling more than a doll – “they’re buying a symbol of themselves”. In practice, this meant cultivating a lifestyle brand around Labubu. Pop Mart enlisted social media and celebrity influencers to spread the word. K-pop star Lisa of Blackpink famously hugged a giant Labubu doll on Instagram, and later posted new Labubu figures to her 100+ million followers on Instagram and TikTok. Celebrities like Rihanna, Dua Lipa, Emma Roberts and Blackpink’s Rosé soon added Labubu keychains and plushes to their bags and outfits, giving the toy cachet as a fashion accessory. This star power helped Labubu “evolve into a collectible and style symbol,” says Pop Mart’s U.S. licensing head Emily Brough. Strategy consultants credit Pop Mart’s success not just to the product, but to its creation of an “emotional resonance” and cultural phenomenon.

Behind the scenes, Pop Mart’s strategy emphasizes exclusivity and fan engagement. The company treats its toy releases like fashion drops, often debuting new Labubu designs through limited runs, pop‑up events or its vending “Robot Stores.” TIME notes that many rising Chinese brands have moved from a traditional product/price model to a “4E” model – Experience, Exclusivity, Engagement, Emotion – and Pop Mart fits this new model. Although it doesn’t call itself a luxury brand, it “resembles one for a new generation,” selling items from as little as $5 up to over $1,500 for premium Labubu collectibles. In other words, Pop Mart used emotional branding and limited editions to make Labubu feel special, even though the base product is a $20–$30 plush toy.

Pricing Tactics and Collectible Economics

The Labubu product line spans a wide price range. At retail, most Labubu blind boxes sell for roughly $20–$30 (e.g. a new series was $27.99 in the U.S.). Pop Mart ensures a Labubu “for everyone,” from basic figures to high‑end artist editions. Limited-edition or artist-collaboration Labubus can carry much higher tags – up to $167+ for special runs. Despite affordable starting prices, Labubu’s collectible nature has driven a huge secondary market. Rare or secret-variant Labubus can resell for thousands of dollars. For example, a one-of-a-kind Labubu fetched US$172,000 at auction in Beijing recently. Even newer U.S. releases saw blind boxes ($28 retail) re-sold for $90 on StockX shortly after launch. Enthusiasts are willing to pay steep markups to acquire missing characters.

This engineered scarcity and collectibility fuels a classic economic effect: fear of missing out (FOMO) and competitive buying. Pop Mart’s blind-box game design deliberately limits immediate supply, so fans rush to buy and trade. The unpredictability of which toy you get creates repeat purchases, and the thrill of potentially unboxing something rare keeps consumers hooked. Experts describe this as an “addictive treasure‑hunt dynamic” for thrill-seeking collectors. It mirrors historical toy crazes like Beanie Babies or NFT drops: the emotional payoff of unwrapping a mystery and the social prestige of owning a scarce item give the product outsized perceived value. In social terms, owning a Labubu – especially a hard-to-get variant – became a status signal. Fans started decorating purses, clothing and phone cases with Labubu charms or plushes, and social media feeds filled with unboxing videos and stylistic Labubu displays.

Pop Mart’s pricing tactics further boosted this status effect. They kept base prices low to broaden the fan base, while concurrently creating ultra-rare high-end pieces. The design of Labubu itself, a quirky “toothy monster” with many styling variations, meant a single character could sustain dozens of collectible sub‑variants. New series like “Big Into Energy” feature multiple colorways and one “secret” figure with only a 1-in-72 chance of getting it. Each series release becomes a mini-lottery. Thus an affordable toy line became a speculative market – akin to limited-run sneakers or art prints. Collectors chase the elusive Labubu “grail” because success confers bragging rights, turning a $30 doll into a coveted icon.

Scaling Up: Production and Supply Chain

Pop Mart was built on China’s manufacturing might. Its CEO Wang Ning openly says the company “uses China’s manufacturing industry and market to incubate artists from all over the world, and bring their creations back out to the world”. In practice, Pop Mart contracts factories across Asia to produce Labubu figures and plushes. As demand exploded, the company scaled production aggressively. During 2024 and early 2025 it nearly tripled revenue, while funneling more capacity into key products like Labubu. The official report shows Labubu‑related “Monsters” products jumped from ¥367.9 million in 2023 to ¥3.0407 billion in 2024. That is a 726.6% increase year-on-year in that category alone.

Pop Mart also diversified its sales channels to push inventory worldwide. Besides its website and own stores, it deployed over 2,490 “Robo Shop” vending machines and authorized dealers globally. When short supply caused chaotic scenes—long lines and even fights at some locations—Pop Mart responded by building more outlets. The company said it was “continuously scaling production and expanding distribution across its online shop, retail stores and blind box vending machines to meet increasing demand”. It temporarily suspended sales in some markets (like the UK) to recalibrate distribution, then relaunched with restocked inventory. By mid-2025, Pop Mart was on track to open dozens more U.S. stores (adding 50 by year’s end) and hundreds of new vending spots.

Throughout, Pop Mart managed costs to preserve margins on Labubu. The Hong Kong annual report shows tight control of manufacturing expenses and licensing fees, allowing “Monsters” products to be particularly lucrative. Bloomberg reported that Pop Mart’s profit margins have become some of China’s highest in retail, driven by these collectibles. Industry analysts note Labubu’s profitability has even outstripped many mainstream toy lines. In fact, Pop Mart’s net profit nearly tripled in 2024, reflecting that successful mix of low-unit cost production and high collectible pricing. In short, Pop Mart leveraged its supply chain efficiency in China to flood the world with Labubus – just enough to keep them scarce and desirable.

Distribution and Global Expansion

Pop Mart’s global footprint expanded almost as quickly as its sales. By late 2024 it had over 530 stores worldwide, including flagships in the U.S. and across Asia, plus thousands of vending machines. Notably, over 130 of those stores and 190 of the robots were outside mainland China. In effect, Labubu propelled Pop Mart into a major export success: overseas revenue skyrocketed 375.2% in 2024, reaching ¥5.07 billion (≈$708 million), roughly 40% of total sales. CEO Wang Ning now predicts that by 2025 international sales will surpass domestic.

Pop Mart strategically targeted markets receptive to its quirky IP and novelty retail concept. Southeast Asia became a standout region. ABC News reports that 2024 revenues in Southeast Asia jumped 619% to ¥2.4 billion ($309M), making it Pop Mart’s largest overseas market. Other successes came in North America and parts of Europe. In Chicago, for instance, Pop Mart sold 200 new Labubu units in one afternoon – they sold out in minutes – and opened a second store to meet demand. In New York, Los Angeles and Dallas, pop-up events and kiosks regularly saw customers lining up for hours on release days. By mid-2025, Pop Mart aimed to have 50 stores in the U.S., plus hundreds of “robot” kiosks, on top of its 31 existing retail locations and 53 vending machines. Similar rollout patterns unfolded globally as Pop Mart drove Labubu into mainstream awareness.

Partnerships also helped Labubu’s international spread. Pop Mart collaborated with well-known global brands to introduce Labubu characters into new contexts. For example, it secured deals to stylize Disney and Sanrio characters as blind-box collectibles, broadening its appeal. These partnerships lent Pop Mart credibility in markets where Western IP still dominates. Within the Labubu line itself, Pop Mart teamed with fashion labels and artists for special editions – one example being the limited “Princesse” series designs – creating buzz among style-oriented fans. Even its own pop-up stores have collaborated with retailers like StockX to tap into collectible culture. All these moves reinforced Labubu’s image as a trendy global toy rather than a local novelty.

Brand Positioning and Cultural Impact

Perhaps Labubu’s most remarkable feat is how a simple, low-cost toy became a high-status cultural symbol. Analysts say Pop Mart’s marketing turned Labubu into a sign of youthful identity and nostalgia. Consumer researchers point out that the name “Labubu” and its whimsical, mischievous design evoke retro cartoon characters and childhood playfulness. Buying a Labubu is framed as reclaiming fun in adult life. Pop Mart’s head of IP notes that fans “connect with its quirky aesthetic and unique backstory”. TIME observes that, amid a youth consumer shift away from traditional luxury brands, pop-culture items like Labubu function as “symbols of self” and personal style. In effect, owning Labubu became a way to participate in a hip global subculture.

Social media amplified this cultural positioning. Labubu went viral on TikTok, where fans posted over 1.4 million videos under the #Labubu hashtag. Unboxing clips, creative displays and even Labubu-themed fashion tutorials proliferated online. Users often treat the doll as a fashion accessory: fans pin Labubu charms to backpacks and purses, or coordinate their outfits around its colorway. One Reuters report captured shoppers referring to Labubu as the latest “it” item in pop culture. Influencers and bloggers further stoked the trend. Every time a celebrity like Rihanna or Rosé appeared with Labubu, it sent the toy’s visibility soaring. Observers note that Lisa’s public endorsement in particular “is widely credited with fueling the toy’s popularity,” especially in Asia. By December 2024, people at Tokyo Fashion Week were snapping selfies with Labubu bag charms.

Underlying these social effects are classic economic drivers. Labubu’s scarcity and collectible mystique tap into fundamental human motivators: the thrill of the chase, nostalgia for childhood, and fear of missing out (FOMO). Market psychology plays on these forces. Just as “limited edition” sneakers or concert tickets, Labubu dolls became status indicators among youth. Owning a rare Labubu signals insider status in the pop art community. Pop Mart also leveraged fear of missing out by controlling supply. When fans see news of sold-out stores and skyrocketing resales, it creates urgency: not owning Labubu risks losing social capital. Industry analysts cite precisely these factors – nostalgia, artificial scarcity and FOMO – as the drivers behind Labubu’s appeal. One Forbes commentator notes that Pop Mart’s blind-box IPs become “trendy cultural phenomenon[s]” by turning collectibles into a shared social currency. (A forbes article explains: “when something’s hard to get, it triggers FOMO,” and that’s a big part of Labubu’s draw.)

Conclusion: Lessons from the Labubu Craze

The Labubu phenomenon offers a case study in modern branding and global consumer culture. Pop Mart shows how a relatively simple product (a $30 plush doll) can be transformed into a coveted luxury-like item through savvy marketing, design and supply tactics. Its success highlights the power of creator-driven IP, social media virality, and strategic scarcity. By treating toys as narrative-rich collectibles and tapping into emotional branding, Pop Mart redefined how consumer goods circulate in the 2020s. The company’s rise – its founder now among China’s wealthiest entrepreneurs – signals that global youth markets are hungry for novelty and community as much as for status brands. Labubu’s journey from book character to global icon underscores that even affordable goods can become symbols of identity and aspiration in today’s interconnected world. As one expert puts it, Pop Mart’s breakthrough isn’t just about toys, but about “creating a cultural phenomenon and an emotional resonance” that resonates well beyond the price tag.

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Sources:

Pop Mart’s own financial reports and filings; news coverage from SCMP, TIME, AP, ABC News, and Bloomberg; and industry analysis (Pop Mart investor materials, Forbes, etc.).