LABUBU: WHAT DOES THAT MEAN? - ScreenVoice.cz

Trends and fads, especially around single products, can make money – but whether they point to something significant about the world (or about how to do business in the world) is much trickier; Labubus are one such fad that invites our consideration – Kantar trend analysis explores the deeper meanings of the toys’ rise.

Why Labubus matter

Labubu dolls, based on a 2015 picture book called The Monsters, are one of China’s biggest global hits, a cultural phenomenon that has many things going for it: scarcity, celebrity endorsements, social media virality, collectibility, limited collections, and a huge secondary market.

It’s testament to the sheer speed of Asian business that the period between the end of initial testing in 2023 and global hit breakthrough in 2024 is described as “gradual” in this excellent piece by Tianyue Cai and Doris Ma’s, both from Kantar Marketplace China.

But there’s more here: they situate the trend in terms of the rise in emotional purchasing, alongside the importance of IP, and the “ugly-cute” aesthetic revolution.

What you need to know

It’s worth pausing to think about what this superstar product has done for owner Pop Mart: in the first quarter of this year, revenues grew 170% YOY – of that its home market of China saw 100% revenue growth and overseas markets grew revenues 480%.

In a HKSE filing this week, the company said it expects a 200% increase in revenue for H1 compared to the same period last year and a 350% increase in profit. Investors initially took the news of hyper-growth cautiously, with a 6% dip in the firm’s stock price on Wednesday suggesting that many believe the growth is likely to slow.

Still, some ideas are worth exploring.

“To become a global brand, it is essential to tell universal stories rather than insisting solely on one's own culture; this is referred to as the "art of leaving blank space" (留白的艺术), allowing consumers to project their own meanings,” the researchers conclude.

The research uncovers four main ideas:

High general appeal of designer toy IPs: They are no longer a niche phenomenon and have a broad consumer base. Consumers are drawn to them visually, regardless of their backstory.

Diverse aesthetics and emotional value: IPs offer unique designs and evoke positive emotions (happiness, relaxation, social connection), fostering consumer goodwill.

IP collaboration for brand growth requires a long-term strategy: While IP collaborations contribute significantly to traffic, they must be part of a long-term plan. Opportunistic actions for short-term gain will not translate into sustainable brand growth.