The Rise of Labubu

The emergence of Labubu as a worldwide cultural and commercial sensation represents one of the most remarkable brand transformations in recent memory. What began as a modest character in Nordic-inspired children's books has evolved into a billion-dollar business empire, fundamentally reshaping the collectible toy industry and demonstrating the extraordinary power of strategic IP development, celebrity endorsement, and global expansion.

The Orgin Story

Labubu originated from the imagination of Kasing Lung, a Hong Kong-born artist who moved to the Netherlands at age seven. Growing up surrounded by European folklore and Nordic mythology, Lung developed a deep fascination with elves and fairy tale creatures that would later define his artistic vision. Without access to modern gaming or digital entertainment, young Lung spent countless hours drawing and sketching, laying the groundwork for what would become one of the world's most recognizable toy characters.

In 2015, Lung introduced Labubu as part of his illustrated series "The Monsters," initially produced through Hong Kong company How2Work. The character was designed as a mischievous yet kind-hearted forest elf with distinctive features: pointed ears, wide eyes, and a signature grin revealing exactly nine sharp teeth. This "ugly-cute" aesthetic would prove to be Labubu's defining characteristic, setting it apart from conventional toy designs.

The Pop Mart Partnership Revolution

The pivotal moment came in 2019 when Beijing-based Pop Mart recognized Labubu's commercial potential and secured an exclusive licensing deal with Lung. This partnership transformed a niche art project into a mass-market phenomenon through Pop Mart's innovative blind box model– sealed packages that conceal the specific design until opened.

Pop Mart's CEO Wang Ning had founded the company in 2010 with a vision to revolutionize the toy industry through surprise-based purchasing and emotional connection. The blind box strategy tapped into powerful psychological drivers: the thrill of discovery, the addiction of collecting, and the social currency of rare finds.

Pop Mart Revenue by Year (2022-2024)

Timeline of Milestones

The rise of Labubu represents a carefully orchestrated sequence of strategic decisions and market responses:

2010: Pop Mart founded by Wang Ning in Beijing
2015: Kasing Lung creates Labubu character as part of "The Monsters" series
2019: Pop Mart partners with Kasing Lung, begins producing Labubu blind boxes
2020: Pop Mart goes public on Hong Kong Stock Exchange
2023: Launch of keychain variants creates new product category
April 2024: BLACKPINK's Lisa adoption sparks global viral trend
2024 Q4: The Monsters series generates $419 million in revenue
2025 H1: Pop Mart expects 350% profit increase, overseas revenue approaches 50% of total

The Blind Box Revolution

Pop Mart's business model represents a sophisticated understanding of consumer psychology and market dynamics. The company's blind box strategy creates multiple revenue streams and engagement mechanisms:

Scarcity and Exclusivity: Each series typically features 12 regular designs plus rare "secret" editions with odds as low as 1 in 1,000. This scarcity drives repeat purchases and creates a thriving secondary market.

Gamification: The unpredictable nature of blind box purchases triggers dopamine responses similar to gambling, encouraging compulsive buying behaviors.

Community Building: Collectors trade duplicates and share unboxing experiences on social media, creating organic marketing and brand loyalty.

Financial Performance and Growth Metrics

Pop Mart's transformation has been nothing short of extraordinary. The company's financial trajectory demonstrates the power of IP-driven business models:

Revenue Explosion: Pop Mart's total revenue grew to ¥13.04 billion ($1.81 billion) in 2024, representing a staggering 106.9% year-over-year increase. The Monsters series, led by Labubu, generated $419 million in 2024, marking a 726.6% growth.

International Expansion Success: Overseas revenue surged 375.2% to $5.07 billion in 2024, now representing 38.9% of total sales. This international growth has been particularly pronounced in key markets.

Profitability Surge: The company's adjusted net profit reached $470 million in 2024, up 185.9% from the previous year. For the first half of 2025, Pop Mart expects profits to jump by at least 350%.

Market Valuation and Industry Impact

Pop Mart's success has created extraordinary shareholder value, with the company's market capitalization reaching $46.1 billion by 2025. This valuation surpasses the combined market caps of traditional toy giants Hasbro ($9.45 billion), Sanrio ($11.2 billion), and Mattel ($6.08 billion).

The company's stock has experienced remarkable growth, jumping nearly 600% over the past year. Wang Ning, Pop Mart's founder, has become China's 10th richest person with an estimated net worth of $22.7 billion.

The Celebrity Catalyst and Viral Expansion

The Lisa Effect

The transformation of Labubu from collectible toy to global fashion accessory can be largely attributed to BLACKPINK's Lisa, who began prominently featuring Labubu dolls in her social media content in April 2024. Lisa's enthusiastic endorsement sparked what industry observers call "The Lisa Effect," triggering massive demand spikes and supply shortages worldwide.

Lisa's influence extended far beyond simple product placement. In a November 2024 interview with Vanity Fair, she openly discussed her "obsession" with Labubu, stating, "I spent all of my money. I go to POP MART everywhere. If I fly to New York, Miami, Paris...everywhere". This authentic enthusiasm resonated with her 104 million Instagram followers and millions of additional fans across other platforms.

Celebrity Amplification Network

Following Lisa's lead, numerous A-list celebrities adopted Labubu as a fashion statement:

• Rihanna was photographed carrying Labubu charms on her luxury handbags

• Kim Kardashian showcased a collection of 10 Labubu dolls on Instagram

• Dua Lipa, David Beckham, and Lizzo have all been spotted with various Labubu accessories

This celebrity adoption transformed Labubu from toy to luxury fashion accessory, with the dolls frequently appearing on designer handbags worth thousands of dollars.

Strategic Business Lessons and Market Dynamics

The Power of Authentic IP Development

Unlike many toy companies that rely on licensed properties, Pop Mart has built its success on original character development. This approach provides several strategic advantages:

Complete Creative Control: Pop Mart maintains full ownership of its characters, enabling rapid product development and brand extensions without licensing constraints.

Higher Profit Margins: The company posted a gross profit margin of nearly 67% in 2024, among the highest of Chinese firms with major international reach.

Long-term Value Creation: Original IP can be leveraged across multiple product categories, retail channels, and geographic markets without external dependencies.

The Secondary Market Phenomenon

The resale market for Labubu products has created an entirely new economic ecosystem. Standard retail prices of $20-$30 often multiply dramatically on secondary markets:

Regular Editions: Typically resell for $50-$150 depending on rarity and demand
Special Collaborations: Can reach $31,250 for limited partnerships like Sacai or Vans
Ultra-Rare Pieces: Life-sized editions have sold for over $170,000 at auction

The rise of Labubu represents far more than a successful toy launch—it exemplifies a fundamental shift in how modern brands create value through cultural resonance, emotional engagement, and strategic scarcity.