Labubu’s Cultural Domination: Pop Mart Reshapes the Global Toy Industry with Viral Innovation
Pop Mart’s pastel-hued character Labubu is driving a seismic shift in the global toy and collectibles market in 2025. Created by artist Kasing Lung, Labubu has evolved from a blind-box toy into a cultural phenomenon, redefining consumer behavior and IP-driven commerce. Pop Mart’s strategy leverages digital virality, celebrity endorsements, and innovative retail formats to unlock multi-billion-dollar growth.
The Viral Engine: Labubu as Cultural Currency
Labubu’s “ugly-cute” aesthetic resonates with Gen Z and millennial “kidults,” a demographic projected to account for one-third of EU toy sales by 2034. Pop Mart weaponizes social media and celebrity influence—endorsements from BLACKPINK’s Lisa, Rihanna, and Kim Kardashian have transformed Labubu into a fashion accessory. On TikTok, #Labubu has over 1.4 million posts, and Instagram features the character paired with luxury brands, elevating its status.
Scarcity and Behavioral Economics
Labubu’s success is fueled by the blind-box retail model, creating surprise and scarcity. Limited-edition drops sell for 150% above retail on secondary markets, driving a thriving resale economy. Pop Mart’s ROBOSHOP network—2,597 automated kiosks—enables rapid global expansion, with overseas revenue surging 440% in H1 2025.
Diversification and Resilience
Pop Mart is diversifying with new product lines like POPOP jewelry and an animated series to extend Labubu’s lifecycle. Despite regulatory scrutiny and consumer concerns about design repetition, Pop Mart’s agility and digital-first approach position it for resilience.
Investment Outlook
With projected 2025 revenue of 30 billion yuan and a 66.8% gross margin, Pop Mart outpaces traditional toy rivals. Its expansion into new markets and entertainment signals untapped potential. The key to sustained success lies in balancing innovation with IP longevity.
Labubu is more than a toy—it’s a cultural and economic force. Pop Mart’s mastery of digital virality, emotional branding, and retail innovation is redefining the toy industry, making Labubu’s story just the beginning.