LABUBU With Hermès Bag: Why Are Chinese Designer Toys Taking the World by Storm? | Going Global · Consumer (AI Translation)

“LABUBU配爱马仕包” 中国潮玩缘何火爆海外？｜出海·消费

Summary:

LABUBU, an intellectual property (IP) under Chinese company Pop Mart, has become a global pop culture phenomenon, especially in China and Southeast Asia, largely due to viral social media and influencer marketing.[para. 1][para. 2] Designed by illustrator Kasing Lung and inspired by Nordic mythological elves, LABUBU features distinctive long ears, a furry body, and a wide, toothy grin. After forming an exclusive partnership with Lung, Pop Mart introduced a refined version of LABUBU, which quickly became highly sought-after, often selling out within minutes and leading to frenzied consumer behavior, including reported incidents of physical altercations overseas.[para. 3] LABUBU products have also entered financial and social domains; for instance, a rare LABUBU sculpture sold for 1.08 million yuan, setting an auction record, and LABUBU dolls have been used as incentives in banking promotions, which attracted regulatory scrutiny.[para. 4][para. 5][para. 6]

The skyrocketing popularity of LABUBU directly boosted Pop Mart’s share price to HK$269.8 as of June 11, 2024, nearly doubling since the beginning of the year, and pushing its market value beyond HK$350 billion. This made Pop Mart the world’s third-largest IP company by market capitalization, surpassing companies like Sanrio and Bandai Namco, and ranking behind only Disney and Nintendo.[para. 7] According to Huatai Securities analyst Fan Junhao, the rise of domestic cultural IPs like LABUBU mirrors China’s growing prowess in the global creative industries, augmented by a robust ecosystem of homegrown talent and maturing overseas operations.[para. 8]

LABUBU originally debuted in 2015 as part of "The Monsters" series. Although the series was not initially Pop Mart’s core IP, its fortunes shifted dramatically when the company released plush blind-box versions in late 2023 and 2024.[para. 9][para. 10] Social media amplification, celebrity endorsements (notably from BLACKPINK’s Lisa and other celebrities in Southeast Asia and the West), and exclusive overseas releases fueled unprecedented demand. In 2024, "The Monsters" IP achieved 700% revenue growth, exceeding 3 billion yuan and accounting for 23.3% of Pop Mart’s total revenue, while LABUBU plush sales surged by 1289%. International sales rose 375% to 5.07 billion yuan, with Southeast Asia emerging as the largest and fastest-growing overseas market.[para. 11][para. 12][para. 13] Shortages and skyrocketing resale prices became commonplace, especially in Thailand, where local resellers charge hefty premiums.[para. 14][para. 15]

Pop Mart’s strategy relies on a combination of strong IP development, collectible and scarcity-driven product releases, and viral content creation on social media. Its direct-owned global retail network (130 overseas stores as of end-2024, in key cities such as London and Paris) ensures high visibility and consistent consumer experience.[para. 16][para. 17] Industry practitioners note the critical role of in-house IP incubation, direct retail, and leveraging celebrity influence for international success.[para. 18][para. 19][para. 20]

Looking ahead, analysts debate the sustainability and replicability of LABUBU’s success. Compared to traditional content-driven IPs, visually appealing "image IPs" like LABUBU spread quickly in today’s social media-driven, short-content environment.[para. 21] Pop Mart’s heavier investment in proprietary IPs delivers higher margins (domestic gross profit at 63.9%; international at 71.3%), compared to companies like 52TOYS with more licensing-based models and lower margins.[para. 22][para. 23] Pop Mart’s direct operation model enables faster market response and greater control over new IP launches, reducing dependence on third-party distributors.[para. 24][para. 25][para. 26]

Despite the concentration of market share being low (the top five Chinese IP toy brands account for only 20.8% of the 2024 sector GMV), industry experts see further growth potential in niche segments, provided companies focus on original IP development, product innovation, prudent management, and avoid overexploitation during periods of hype.[para. 27][para. 28][para. 29][para. 30]