From China to the world – how Pop Mart turned Labubu into a US$100,000 sensation

Key Concepts:

• Labubu: A rabbit-like figure created by artist Kasing Lung in collaboration with Pop Mart.
• Pop Mart: A Chinese toy maker known for its collectible toys and mystery box sales system.
• Mystery Boxes: Sealed boxes containing a random Labubu figure, driving collectibility.
• Limited Editions/Variants: Different versions of Labubu, including country-specific variants, increasing collectibility.
• Celebrity Endorsements: Unpaid endorsements from celebrities like Rihanna, Dua Lipa, and Lisa from Blackpink, boosting popularity.
• Scarcity: Pop Mart's strategy of controlling the supply of limited editions and timed drops to drive demand.
• Speculative Value: The potential for a collectible's price to increase in the secondary market.

1. Labubu's Record-Breaking Auction and Rise to Collectibility

• A human-sized Labubu figure sold for $150,000 USD at an auction in Beijing, setting a new record for the toy.
• The mint green Labubu is approximately 130 cm tall and is claimed to be the only one of its kind.
• Labubu is a creation of Hong Kong-born artist Kasing Lung.
• The record price signifies Labubu's transition from a popular trend to a highly sought-after collectible.
• Labubu belongs to Pop Mart, a Chinese toy maker that gained prominence after celebrities were seen with its products.
• Other Pop Mart characters, such as Crybaby and Dimu, have also benefited from Labubu's popularity.
• While Labubu keychains are officially priced around $20, larger and rarer collectibles command significantly higher prices in the secondhand market.
• A 79 cm tall version, originally priced at around $1,400, has seen its price climb to almost $5,000.

2. Pop Mart's Financial Success and Market Position

• Pop Mart's share prices are consistently breaking records.
• Its market capitalization exceeds the combined value of Mattel, Hasbro, and Sunreal.
• Wang Ning, the founder of Pop Mart, is now a billionaire.
• Pop Mart has expanded internationally, with approximately 400 stores worldwide, including 30 in the US.
• Pop Mart IPOed in Hong Kong in 2020.

3. Factors Contributing to Labubu's Appeal

• Affordability (of entry-level products): While rare collectibles are expensive, the initial investment in mystery boxes is relatively low.
• Collectibility: The thrill of the mystery box and the desire to complete a collection drive repeated purchases.
• Cool Factor: The overall concept of Labubu is perceived as "very cool" by fans.
• Mystery Box Element: The excitement of not knowing which figure is inside the box encourages repeated purchases to obtain desired characters.
• Limited Editions and Variants: The availability of limited edition and country-specific variants fuels the collector mentality.
• Celebrity Sightings: Celebrities like Rihanna, Dua Lipa, and Lisa from Blackpink have been seen with Labubu keychains and toys, contributing to its popularity.

4. Pop Mart's Business Strategy

• Collaboration with Artists: Pop Mart emphasizes building relationships with well-known artists like Kasing Lung.
• Scarcity and Limited Editions: Pop Mart maintains strict control over the supply of limited editions, secret variants, and timed drops to create demand.
• Mystery Box Sales System: The mystery box concept encourages repeated purchases and collectibility.
• International Expansion: Pop Mart has expanded its presence globally, with numerous stores in various countries.

5. Comparison to Other Toy Crazes

• Labubu's rise in popularity and value has been unprecedented compared to previous toy crazes like Be@rbrick and Funko Pop.
• It took Be@rbrick nearly 20 years for one of its top collectibles (a collaboration with Karl Lagerfeld) to reach a price of $30,000 USD.
• Labubu's most collectible item sold for $150,000 USD within six years.
• Funko Pop toys are more mass-market collectibles and target a different tier of consumers.
• Funko Pop relies on licensing agreements and fan engagement rather than creating speculative value through limited editions.

6. Lessons for Other Brands and Cultural Strategists

• Clever Marketing: Effective marketing strategies are crucial for driving popularity.
• Social Media Engagement: Engaging with fans on social media, particularly through unboxing videos, can fuel the frenzy.
• Celebrity Endorsements (Organic): Unpaid endorsements from celebrities can significantly boost a product's visibility and desirability.
• Creativity and a Good Idea: A unique and appealing concept is essential for capturing the public's attention.

7. Notable Quotes

• "It's just the overall concept of Labubu that is very cool." - Shanghai Fan
• "...the thrill of actually you know going to buy one of these not knowing what you're going to get and then if you don't get it then it's going to feed into your collector mentality to try get the one that you want so you got to keep buying" - Roland
• "...with clever marketing uh with the engagement of social media especially with uh labubu's case it's about getting celebrity endorsements and not paying them for for it but then you get all the fans as well uh on social media unboxing their labus that actually feeds into the frenzy" - Roland

8. Conclusion

Labubu's success is a result of a combination of factors, including a unique and appealing character design, a clever marketing strategy that leverages scarcity and social media engagement, and the appeal of the mystery box concept. Pop Mart's ability to cultivate relationships with artists, control supply, and generate celebrity endorsements has propelled Labubu to unprecedented levels of popularity and value, making it a case study for other brands seeking to create a similar phenomenon.