Case Study 5: Labubu — The Hype, The Viral, and What’s Next for Pop Mart

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The Rise of a Plush Phenomenon

Forget everything you think you know about collectible toys. This isn’t just a story about a plush. It’s about how a $25 plush gremlin called Labubu became the hottest global accessory of 2025, worn by A-listers like Lisa (BLACKPINK), Rihanna, and Dua Lipa, sold out across Asia and Europe, and flipped by resellers for thousands of pounds. Within a year, this quirky creature transformed Pop Mart, once a niche Chinese collectible brand, into a global giant, briefly valued higher than Hasbro and Mattel combined.

But what really happened here? Was Labubu’s success just a stroke of viral luck, or a meticulously engineered cultural phenomenon built on the psychology of scarcity, social proof, and emotional connection? Let’s break down the real marketing mechanics behind Pop Mart’s rise… and what the brand must do now to survive the post-hype phase.

From Beanie Babies to Blind Boxes: The Evolution of Collectible Craze

Before Labubu, there was Beanie Babies, the American craze of the 1990s. What made those small stuffed animals explode wasn’t just cuteness; it was scarcity. Entrepreneur Ty Warner intentionally retired certain characters, sparking a collector frenzy. Sound familiar? Pop Mart’s Labubu story follows a similar pattern, but with a modern, digital twist. Instead of shelves, Pop Mart built its success on blind boxes, a purchase model rooted in Japan’s Gashapon capsule toys of the 1980s. Each box hides a mystery toy, and only 1 in 144 boxes contains a “secret rare.” In marketing psychology, this is called variable ratio reinforcement – the same addictive pattern used in slot machines. You never know when you’ll “win,” but you always get something.

OTINGA Insight: When every purchase carries the thrill of luck, people don’t just buy, they chase.

By combining this mechanic with sleek design and emotional storytelling, Pop Mart didn’t just sell toys. They sold anticipation, dopamine, and belonging.

The Four-Part Viral Cycle Behind Labubu’s Global Hype

Labubu didn’t go viral by accident. Pop Mart followed a clear four-phase marketing playbook, each stage engineered to trigger both online virality and offline obsession.

  1. Phase 1: Scarcity – The Engine of Desire Pop Mart knew scarcity fuels value. The blind box model wasn’t just a sales format; it was the emotional core of the brand. Each Labubu release contained: 12–14 regular designs, 1 secret “chase” figure, and occasionally, limited gold or glow-in-the-dark versions. The odds? Around 1 in 144 rare enough to make you try again. Every unboxing became content. TikTok and YouTube filled with “pull videos,” generating billions of views. The physical act of discovery transformed into digital currency.

Stat: According to Pop Mart’s 2025 prospectus, 70% of toy consumers make more than three purchases trying to find a specific design (SCMP, 2025).

OTINGA Insight: “Scarcity isn’t manipulation, it’s theatre. People love to feel lucky.”

  1. Phase 2: The Spark – Celebrity Social Proof Then came the moment of ignition. In April 2024, Lisa from BLACKPINK dropped a casual photo on Instagram with a tiny Labubu keychain hanging off her designer bag.

Within hours:

  • “Labubu” Google searches spiked 800% in Thailand and South Korea.
  • Pop Mart’s website crashed from traffic.
  • The hashtag #Labubu trended across Asia.

That single post triggered what behavioural economists call a social proof cascade, when the endorsement of a high-status figure causes the masses to follow suit. Zaltman (2016) explains that 95% of purchasing decisions are made unconsciously, heavily influenced by social cues. Lisa’s post didn’t just promote a toy; it validated belonging. Owning a Labubu became a signal: “I’m in the cultural loop.”

  1. Phase 3: The Spectacle – Turning Collecting into Experience After online hype peaked, Pop Mart made a genius pivot: they went offline. In mid-2024, Pop Mart launched Labubu pop-ups in major cities, from Shanghai to Paris to Chicago. Each activation was part art exhibit, part shopping frenzy:
  • Giant Labubu mascots for selfies.
  • Life-size installations in shopping malls.
  • Exclusive drop events where fans queued for hours.

In Paris, they opened a flagship store inside the Louvre Mall, aligning the brand with art and high fashion. The result? FOMO went global. Lines stretched for blocks, and by the time stores opened in London and New York, fans were camping overnight.

OTINGA Insight: “When your customers create queues, they’re not waiting for a product they’re waiting for belonging.”

  1. Phase 4: The Loop – Online-Offline Viral Symbiosis Every physical event became fuel for digital virality and every viral post amplified the next event. Pop Mart built a closed marketing ecosystem where the fans did the heavy lifting. The formula looked like this:

Scarcity → Purchase → Content → FOMO → New Purchases.

This self-sustaining loop turned Pop Mart’s customers into evangelists, amplifying its reach with zero media spend.

Fact: Pop Mart’s revenue grew fivefold in 2025, with overseas sales up +500% year-on-year (Pop Mart Annual Report, 2025).

The Psychology of Obsession

Labubu’s success isn’t just marketing; it’s neuroscience. Let’s unpack the psychological levers Pop Mart pulled:

  1. The FOMO Engine Pop Mart engineered the perfect scarcity curve: limited drops, hidden designs, and time-bound events. When consumers saw others queuing or posting unboxings, their emotional brain screamed, “I need to be part of this.”
  2. Variable Reward: The Dopamine Slot Machine Every blind box purchase triggers a dopamine hit—the brain’s reward chemical. The uncertainty (“Which one will I get?”) mimics the neurological thrill of gambling, but with guaranteed gratification. Since buyers always win something, it makes the habit even more addictive.
  3. Emotional Ownership (The IKEA Effect) People value what they “build” or “discover” Each collector builds a personal relationship with their figurines, naming them, displaying them, and sharing them. This emotional investment transforms a £25 toy into a £250 collectible. Batat (2021) calls this “consumer co-creation”when buyers emotionally co-own a brand’s story.
  4. Community Validation: Building a Digital Tribe Pop Mart cultivated micro-communities on Weibo, TikTok, Discord, and Instagram, where collectors share rare finds, trade figurines, and attend meetups. This digital tribe turned customers into members.

OTINGA Insight: “Pop Mart didn’t sell toys. It sold tribe membership.”

The Crash: When Hype Becomes Habit

But by mid-2025, the cracks started to show. The same scarcity that drove the craze now started to backfire as Pop Mart scaled production to meet global demand. Suddenly, the rare “secret” figures weren’t so secret anymore. Secondary market prices plummeted, and the #LabubuCraze hashtag went from trend to fatigue. In September 2025, Pop Mart’s share price fell nearly 25% after JPMorgan downgraded its stock citing “trend saturation” (SCMP, 2025).

“The dopamine ran out,” says OTINGA’s experiential lead. “Once everyone could get one, no one wanted one.”

The Structural Risk of Viral Brands

Pop Mart’s core issue isn’t creativity; it’s dependency on short-lived IP cycles. Each new hit (like Molly, Crybaby, or Skullpanda) has a typical life span of 2–3 years—after which demand collapses. The brands that survive are those that extend IPs beyond the shelf—through entertainment, media, and cultural storytelling, mirroring the Sanrio model.

What’s Next for Pop Mart?

So, what happens after the hype fades? Pop Mart’s next chapter will determine whether it becomes a cultural icon like Hello Kitty, or just another passing trend like fidget spinners. Here’s where they must double down:

Evolving from Toymaker to Storymaker

  1. Pop Mart is now positioning itself as an IP entertainment company. This mirrors the Sanrio model—how Hello Kitty evolved from stationery to an emotional lifestyle brand spanning five decades. Projects in the pipeline include:
    • A Labubu animated series (currently in development).
    • PopLand, a Beijing theme park featuring life-size mascots.
    • Crybaby and Twinkle IPs designed to capture Gen Z and Gen Alpha.

Expert commentary from HSBC (2025): “The decline in Labubu’s excitement is natural a healthy evolution. It’s moving from hype to heritage.”

  1. Expanding Global Footprint Less than 50% of Pop Mart’s revenue currently comes from outside China, meaning massive potential for Western markets. They’re using physical stores as content studios—every selfie and queue in their flagship locations (like Paris’s Louvre Mall, and London’s Covent Garden pop-up) is another touchpoint in their experiential engine.
  2. Building Emotional Longevity The challenge for Pop Mart isn’t attention; it’s affection. They’ve mastered FOMO; now they must master FOLC – Feeling of Lasting Connection.
  3. This means turning IPs into narratives (via film, animation, music collabs) and building empathy-based storytelling, much like Pixar. Batat (2022) calls this “empathy branding” when a brand creates genuine emotional proximity through authenticity, not hype.

OTINGA Insight: “Don’t chase the next hype. Build the next habit.”

OTINGA’s Strategic Takeaway: From Hype to Heritage

Labubu’s story is a modern parable for every marketer chasing virality. Hype is oxygen—but it burns fast. The brands that survive are the ones that turn viral moments into cultural ecosystems. Pop Mart succeeded because it understood emotion, scarcity, and community better than most. But now, it must evolve from being a brand that sells joy to a brand that sustains meaning.

Key Lessons for Marketers & Brands

  1. Scarcity Works – But Only If It’s Earned. Artificial scarcity fails if consumers don’t feel the value. Build trust through quality and design first, then scarcity amplifies demand.
  2. Influencers Don’t Create Trends—They Amplify Momentum. Lisa didn’t make Labubu famous; she legitimised what fans already loved. Choose authentic advocates over paid ads.
  3. Hybrid Experiences Drive Longevity. Every digital campaign should have a physical anchor. Every physical event should have digital amplification. Pop Mart’s pop-ups were masterclasses in phygital strategy.
  4. Community Is the New Media. Your best marketing channel isn’t your social media page; it’s your customers’ group chat. Cultivate tribes, not traffic.
  5. Build IPs That Outlive Trends. Just like Sanrio did with Hello Kitty, brands must evolve from novelty to nostalgia. Emotional storytelling keeps relevance alive when the buzz fades.

OTINGA Final Word

Labubu wasn’t luck. It was strategy, psychology, and timing wrapped in a cute little plush. But as we always tell clients—virality is borrowed, brand is owned. Pop Mart now stands at a crossroads: chase the next craze, or craft the next cultural legacy. And if they get it right? Labubu won’t just be a toy. It’ll be a generational memory—the Hello Kitty of this era.

References

  • Alroy, A., Ben-Shushan, E., & Katz, B. (2022) Event Success: Maximizing the Business Impact of In-Person, Virtual, and Hybrid Experiences. Hoboken: Wiley.
  • Ahrefs (2025) The Genius Marketing Strategy Behind Labubu’s Global Rise.
  • South China Morning Post (2025) After the Labubu Craze, What’s Next for Pop Mart?
  • Batat, W. (2021) Experiential Marketing: Case Studies in Customer Experience. Routledge.
  • Batat, W. (2022) Empathy Branding: How to Build Genuine Emotional Proximity Through Authenticity, Not Hype. London: Routledge.
  • Cialdini, R. (2021) Influence: The Psychology of Persuasion. Harper Business.
  • ContentGrip (2025) How Pop Mart turned Labubu into a masterclass in viral branding. Available at: https://www.contentgrip.com/labubu-global-success-playbook/ (Accessed: 21 October 2025).
  • ContentGrip (2025) The Marketing Masterclass of a Tiny Monster: How Labubu Became a Global Icon. Available at: https://medium.com/@designersanghamitra/the-marketing-masterclass-of-a-tiny-monster-how-labubu-became-a-global-icon-32164506c0cc (Accessed: 21 October 2025).
  • Goldman Sachs (2025) Trendy Toy Market Forecast.
  • HSBC (2025) Pop Mart IP Longevity and Growth Outlook
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