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5 Lessons Businesses Can Learn from Labubu’s Phenomenal Success
Beyond the Blind Box
Labubu -the name may be new to you and sound like a playful nonsense word, but its impact on pop culture is undeniable. The mischievous, sharp-toothed monster has transcended its origins as a niche art toy to become a global cultural phenomenon. This wasn’t a fluke; it was a masterful campaign built on a blend of psychology, strategic partnerships, and community engagement, all of which propelled its creator, POP MART, to dizzying new heights. In 2024, Labubu’s “The Monsters” intellectual property (IP) generated approximately USD 419 million in revenue, representing a year-on-year growth of 726.6%. The following lessons, supported by data, provide a roadmap for businesses aiming for similar success.
Pop Mart’s 2020-2024 Financial Performance Highlights
Financial Trend by Year
Source: Pop Mart’s 2024 Annual Report
1. Harness the Power of “Ugly-Cute” and Brand Uniqueness
In a market dominated by conventionally adorable characters, Labubu’s success is a testament to the power of standing out from the crowd. Its “ugly-cute” aesthetic, with jagged teeth and a mischievous grin, defies traditional notions of cuteness. This intentional divergence from the norm creates an instantly recognizable and memorable brand identity. Rather than trying to appeal to everyone, Labubu’s distinctive look resonated deeply with a specific demographic of “kidults”—adults who embrace nostalgia and unconventional art. According to research from the Journal of Consumer Research, this phenomenon, known as “divergence,” explains why consumers often favour products that help them communicate a desired identity by going against the grain.
Examples from Labubu’s Marketing:
- Economic Juggern Consistent Visual Identity: Labubu’s iconic design is consistent across all products, from blind box figures to plush toys and accessories. This visual cohesion ensures that whether a fan sees it on a keychain or a large display, the character is unmistakable, reinforcing strong brand recognition. In 2024, plush toys featuring Labubu saw a 1,289% year-over-year increase in revenue, accounting for 21.7% of POP MART’s total revenue.
- Emotional Connection: Labubu is often described in brand lore as a kind-hearted but clumsy monster whose attempts to help frequently go wrong. This relatable, flawed personality fosters a strong emotional bond with collectors, who project their feelings and narratives onto the figures, thereby creating a unique connection. A study in the Journal of Marketing found that strong emotional connections to brands are better predictors of consumer commitment and price tolerance than satisfaction metrics alone.
2. Master the Psychology of Scarcity and Variable Rewards
At the heart of Labubu’s marketing is the “blind box” model, a brilliant strategy that taps into powerful psychological triggers. This method of selling sealed, mystery-packed figures turns every purchase into a game of chance and a potential “jackpot.” The element of surprise, combined with a carefully managed system of rarity, creates a powerful feedback loop of anticipation and reward.
Examples from Labubu’s Marketing and Advertising:
- Blind Box Mechanics: The core of the product’s allure lies in its variable reward schedule, reminiscent of a slot machine. The possibility of getting a rare “secret” figure with odds as low as 1 in 144 chances in some series fuels a powerful collecting habit and encourages repeat purchases. According to a report by Demand Sage, some people have spent over $22,895 on blind box purchases to get a secret Labubu.
- Limited-Edition Drops: POP MART strategically releases limited-edition Labubu figures and timed drops, which creates a sense of urgency and FOMO (Fear of Missing Out). These drops often sell out in minutes, generating massive online buzz and a thriving secondary market where rare figures can resell for multiple times their original price. One report noted that the resale value for some rare Labubu editions can be 300-500% of their retail price.
3. Turn Customers into Brand Ambassadors with User-Generated Contentable Rewards
Instead of investing heavily in traditional advertising, Labubu’s success has been fueled by its community. The product and its packaging are designed to be inherently social and shareable, transforming every customer’s unboxing into a piece of free marketing content. This strategy has made the brand a mainstay on social media platforms like TikTok, Instagram, and Xiaohongshu.
Examples from Labubu’s PR Campaigns:
- Viral Unboxing Videos: Labubu’s PR strategy hinges on user-generated content (UGC). Hashtags like #LabubuUnboxing have garnered millions of views on TikTok, with users sharing their genuine moments of surprise and delight as they reveal rare figures. This authentic, word-of-mouth advertising builds trust and drives new fans to the brand.
- Celebrity Endorsements: High-profile endorsements were not scripted ad campaigns but organic social proof. When K-pop idols like Lisa of BLACKPINK, as well as stars like Rihanna, were spotted with Labubu keychains on their designer handbags, it legitimized the trend, introducing the brand to a massive, global audience. Research from a McKinsey report found that 63% of successful product launches leverage community engagement strategies, with those emphasizing community building showing 28% higher customer retention rates.
4. Build a Universe, Not Just a Product
Labubu is more than just a toy; it is a character with a rich backstory and a place in a broader fictional universe called “The Monsters,” created by artist Kasing Lung. This narrative depth provides an emotional anchor for the brand, giving fans a deeper connection and something to talk about beyond the product itself. The Labubu IP is part of a larger ecosystem of IP brands owned by POP MART, with more than 13 of these brands generating over USD 13 million in annual revenue.
Examples from Labubu’s Marketing:
- Compelling Lore: Labubu’s lore, which describes the character as a mischievous but kind-hearted elf-like creature, fosters a deep sense of emotional identification. A study on “parasocial relationships” found that fans identify with characters, forming one-sided relationships and engaging in fan-driven content creation online, which is a powerful driver of brand loyalty.
- IP Expansion: The success of the Labubu IP has enabled a wide range of brand collaborations. Partnerships with fashion labels like Uniqlo, a jewelry collection with Thailand-based company Ravipa, and appearances on the runways of Milan Men’s Fashion Week have expanded its reach from the toy aisle to the world of high fashion, cementing its status as a cultural icon.
5. Create a Seamless Omnichannel Experience
POP MART has expertly blended physical and digital channels to create an immersive customer journey. This includes everything from physical retail locations to a sophisticated mobile app and even automated vending machines. With this approach, fans can engage with the brand in various ways, at any time and from any location.
Examples from Labubu’s Marketing:
- App-First Engagement: The POP MART app serves as a central hub for the community. It allows users to track their collections, receive notifications about new drops, and interact with other collectors. According to an analysis by FoxData, the POP MART app was ranked in the Top 10 free shopping apps in the U.S. App Store in May 2025, a rare breakout for a Chinese lifestyle brand in the Western market.
- Offline-Online Synergy: POP MART’s physical stores are designed to be an experience in themselves, with each one styled after its characters. This encourages customers to plan trips to visit different locations, which in turn drives app downloads and in-store engagement. The company’s international offline stores generated revenue per store almost three times that of its domestic stores in 2024, highlighting the strength of its global retail strategy.
By combining a unique and memorable design with powerful psychological triggers, community-driven content, and a well-developed narrative, Labubu’s success offers a masterclass in modern marketing. The brand’s triumph proves that in today’s consumer landscape, the most compelling products aren’t just sold—they’re experienced, shared, and, most importantly, become a part of a cultural movement.