How Pop Mart’s Labubu Captivated Collectors Worldwide

The collectible toy market has been transformed by the popularity of Pop Mart’s Labubu, a character that has sparked a global craze among collectors. Since its introduction, the “ugly-cute” Labubu has attracted a dedicated following, evidenced by a recent incident at the Pop Toy Show in Singapore, where fans camped overnight for the chance to purchase exclusive items. The show, held at the Marina Bay Sands Expo, saw attendees arriving as early as 3 a.m. in hopes of acquiring the limited-edition Merlion Labubu.

Terry Khoo, a 29-year-old project manager, waited six hours in line, only to have the launch of the toy abruptly cancelled due to a scuffle among eager buyers. This incident highlights the intense demand for the figurines, which has propelled Pop Mart—founded in 2010—to remarkable financial heights. In the first half of 2024, the company reported a staggering 400% surge in net profit, with revenue rising by 204.4% year-on-year to 13.88 billion yuan (approximately USD $1.95 billion).

The allure of Pop Mart extends beyond mere toys. Ripple Sim, a 41-year-old event stylist, has invested thousands into her collection, consisting of over 100 items, including multiple Labubu figures. Sim engages her followers by live-streaming her unboxing of Pop Mart blind boxes, which adds a communal aspect to her hobby. “I love unboxing blind boxes as well as watching people unbox, so I decided to live-stream it,” she said, noting the excitement it generates among her viewers.

Blind boxes, sold in sealed packaging that conceals their contents, create a sense of anticipation and excitement among collectors. This thrill has drawn many, including a civil servant who has spent around S$5,000 on her collection of over 300 Pop Mart figures. The unpredictability of blind boxes not only fuels excitement but also fosters a sense of community among collectors. “With friends and colleagues, it became a discussion topic,” she shared, emphasizing how the activity has evolved from mere collecting to socializing.

The demand for Labubu has made it a global phenomenon, attracting attention from celebrities and collectors alike. American singer Rihanna, tennis star Naomi Osaka, and former footballer David Beckham have all been seen with Labubu figures. This celebrity endorsement has significantly contributed to the brand’s popularity, pushing Pop Mart to expand its reach. As of August 2024, the company operates 571 stores worldwide, a marked increase from 80 the previous year.

Despite its success, Pop Mart faces scrutiny. Critics question the obsession with toys that some deem unattractive, suggesting that spending large sums on collectibles may seem irrational. Dr. Joicey Wei, an associate professor of marketing at the Singapore University of Social Sciences, noted that for many, spending hundreds on a toy appears wasteful. Yet, for collectors, emotional and collectible value far outweighs the material cost.

Recent fluctuations in Pop Mart’s shares, which dropped nearly 9% following a negative assessment from JPMorgan Chase, have sparked discussions about the sustainability of the Labubu trend. Analysts express concerns that as the novelty wears off, consumer interest may wane. However, Dr. Brian Lee, head of the communication programme at SUSS, believes the brand’s business model is robust enough to withstand potential downturns. He remarked, “The Labubu craze may have reached its peak and stabilized, but Pop Mart’s strategy appears built for sustainability.”

Founded by Wang Ning, Pop Mart’s trajectory changed dramatically with the launch of Labubu in 2019, following a licensing deal with illustrator Lung Kasing. The character gained significant traction after a post by K-pop star Lisa from Blackpink in April 2024, which propelled Labubu into the spotlight. The rise of social media has played a crucial role in Pop Mart’s success, leveraging user-generated content to enhance brand engagement.

Experts highlight various factors contributing to Pop Mart’s appeal, including the thrill of surprise inherent in blind boxes and the rise of “kidulting,” where adults indulge in toys that evoke nostalgia. Dr. Samer Elhajjar, a senior lecturer at the National University of Singapore, explained how during economic downturns, consumers often opt for affordable luxuries rather than large expenditures, making Pop Mart’s products appealing due to their price range of S$15 to S$30.

While Pop Mart’s future appears promising, risks remain. Stricter regulations on blind boxes and consumer trends could affect its standing in the market. The Chinese government has already taken measures to limit the sale of blind boxes to children under eight, raising concerns about addictive spending habits. These regulatory frameworks, coupled with the potential for counterfeits, could dilute Pop Mart’s brand appeal.

For now, fans continue to enjoy the thrill of collecting. “I love the excitement of unboxing,” said a civil servant who has amassed over 300 figurines. “The thrill of blind boxes is in the unboxing process and not knowing what to expect.” As the craze unfolds, the enduring appeal of Labubu and Pop Mart’s innovative approach to toys will shape the landscape of collectible culture in the years to come.