Introduction:
Meet Labubus: they’re grinning, wide-eyed, and weirdly adorable – and they’re taking over the world. Labubus, the oddball figurines with scruffy hair and chaotic charm, have sparked a global craze from Beijing to Brooklyn. But behind their “ugly-cute” appeal lies a masterclass in modern marketing, consumer psychology, and scarcity-driven demand.
These aren’t just toys. They’re collectibles, status symbols, and in some cases, investments. From pop-up shops to secondhand resellers charging triple digits, the Labubu frenzy is reshaping how brands sell – and how we buy.
Company background, margins, audience:
Labubus are distributed by a Chinese toy company called Pop Mart but Labubus are not a Pop Mart creation. They were actually first designed in 2015 by the Hong Kong born designer Kasing Lung. Unlike traditional toys, Labubus have an ugly-cute aesthetic, a mischievous grin, wild eyes and a face only a collector could love. They were marketed as the mysterious yet kind underdog, which made it stand out among the collectible figurine community.
Originally, Labubu’s target audience were kids and teens. However, people of all ages started buying them as they were appealing to everyone. Labubu customers range from kids to adults.
Marketing strategies:
Due to Labubu’s massive success, Pop Mart’s profits have increased by at least 350% according to Bloomberg. Why? Because of good marketing and advertising. Once BLACKPINK’S Lisa was spotted with a Labubu, her fans instantly noticed it hanging from her bag – and so did the rest of the world. Once Lisa was seen with it, other influencers started promoting it. This led to a new craze.
Moreover, Labubu’s were created to be exclusive which is why they have such limited supply. Marketing people, listen up: good advertising + low supply = tons of profit!
This concept links to cognitive biases and Pop Mart is really capitalising on it. For instance, this is an example of scarcity bias. This means that people appreciate things the more exclusive they are. Furthermore, when limited edition Labubus are released, it triggers FOMO (Fear Of Missing Out) in people, forcing them to buy it. Also, when we see people around us doing things, we tend to copy them – an example of social proof. And last but not least, sunk cost fallacy. When a person starts collecting Labubus, they feel the need to continue collecting.
Another marketing strategy Pop Mart has used is the bling box format. When you buy something in this packaging, you don’t know which Labubu you are getting. Therefore, this makes people repurchase them until they get their favourite one. Not only does this increase profits but it also promotes trading culture, keeping the buzz alive.
How are they selling, strategy to provide product, supply chain:
You won’t find a Labubu in every toy store. Pop Mart controls how, when, and where these collectibles appear, making scarcity part of the product itself. If you want to buy a Labubu, you have to visit select pop up stores, hunt down vending machines filled with limited quantities, or spend hundreds of dollars to buy them from a reseller. Each Labubu usually comes in a blind box, meaning buyers don’t know which figure they’ll get – encouraging multiple purchases to complete their collection. This drip-feed sales strategy keeps demand high, fuels excitement, and creates a thriving resale market where rare figures can sell for many times their original price.
Examples of companies who have done this (jellycats, sonny angels, rhode):
Labubu’s marketing strategy isn’t unique. Many companies have used similar tactics in the past.
For instance, Jellycat, the plush toy brand that gained lots of traction after going viral on Tiktok. They used limited availability and adorable designs to turn their products into must-have products.
Similarly, the Japanese blind box figurines Sonny Angel built a collectors’ culture by releasing limited editions and encouraging trading. Their “mystery” packaging keeps buyers buying in hopes of completing their sets.
Even rhode, a skincare brand founded by Hailey Bieber, tapped into scarcity marketing with its limited-edition lip gloss phone cases. These sold out within minutes and sparked intense demand online – not because people needed phone cases, but because owning one meant being part of a trend.
Learning for businesses and marketing:
The Labubu phenomenon reveals a powerful truth: with the right branding, even niche toys can become global status symbols. Businesses that previously ignored collectible culture should take notice. Today’s toy market isn’t just about children – it’s powered by adults seeking novelty, nostalgia, and exclusivity…
This whole craze reveals one thing: with the right marketing, even niche toys can become global status symbols. Businesses that used to ignore collectable culture should now take notice. Today’s toy market isn’t just designed for children, it is also meant for adults seeking nostalgia and exclusivity. Here are some main takeaways:
- Toys aren’t just for kids: Today’s toy market is mostly driven by adults wanting to participate in trade and collectable culture and/or seeking nostalgia.
- Scarcity works: Not only does scarcity promote exclusivity, it also increases demand. Low supply = High demand.
- Use influencers strategically: Even just 1 celebrity sighting can explode awareness (eg. Lisa spotted with a Labubu).
- Packaging matters: Blind boxes promote repeated purchases .
Learnings for society and individuals:
Labubus also reveals something about us as consumers and society. People are not just buying for joy, but out of impulse, FOMO, or societal pressure. This ties to consumerism and the trap of constantly wanting more. The whole trend promotes over-consumption. When you are on social media and see the amount of PR influencers receive, we are so quick to judge them and call it over-consumption. But we are no less. People are going insane buying hundreds of Labubus. This overconsumption also contributes to plastic waste, excess packaging, and a growing environmental footprint. In a world already burdened by fast fashion and tech upgrades, even collectible toys are part of the problem.
Summary:
Labubus isn’t just a toy – it’s a business case study and a reflection of how modern marketing fuels obsession. From influencer-driven demand and scarcity tactics to the psychology of FOMO and sunk cost, Pop Mart has created more than a product – they’ve engineered a movement.
For brands, the lesson is clear: clever marketing + limited supply = viral success. For consumers, it’s a reminder to pause and ask: Am I buying this because I love it, or because I’m being sold a feeling?
The Labubu craze reveals the power of marketing – and the cost of consumption.