Usually seen hooked on designer handbags, the Labubu seems to exemplify the power of scarcity-driven hype, emotional spending and the shifting dynamics of consumer behaviour.
“Its limited availability, serialised drops, and distinctive character design echo the exclusivity and hype strategies used in streetwear and sneaker culture. Collaborations with fashion brands and appearances on social media by niche influencers have further embedded Labubu in the fashion-collector psyche,” Maire (Mo) Morris, CEO, Morris Global Consulting, said in an exclusive interview with Arabian Business.
According to marketing company Fabric Academy, “At the heart of Labubu’s appeal is psychology. These toys tick off several cognitive boxes that fuel consumer desire. First: the surprise. Sold in “blind boxes”, Labubus tap into the psychological principle of variable reward – the same mechanism that keeps us addicted to slot machines and Instagram likes.”
“When supply is low, perceived value skyrockets. It’s basic behavioural economics, but boy does it work. Add in resale culture and collectors dropping serious cash for ultra-rare versions, and you’ve got a recipe for obsession,” it explained.
From folklore-inspired character to global phenomenon
The Labubu doll has transcended its origins to become a global cultural phenomenon. The journey began with artist Lung’s fascination with Nordic folklore and his desire to create a character that embodied both mischief and charm.
Initially introduced in 2015, the character gained significant traction following a collaboration with Pop Mart. This partnership propelled Labubu into the realm of collectible art toys. The allure of Labubu seems to be not only in its design but also in its embodiment of a broader cultural narrative, resonating with themes of individuality and nostalgia.
The ‘monster’-like doll retails for around $25. However, with the skyrocketing demand, the dolls are oftentimes out of stock in store. Resellers have been quick to jump on the trend, with a single doll selling for up to three times the retail price.
Mad Kicks UAE, a resale store for sneakers and streetwear, stock the Labubu figures for AED300 a piece and a price tag of AED1,500 for the ‘blind box’ which comes with six different pieces.
Morris explained that the Labubu collection has influenced fashion collections and streetwear in recent seasons, in numerous ways:
Graphic print and character merchandising: Brands, especially in Asian markets and global streetwear, are releasing capsule collections featuring character-driven prints — not only Labubu but similar figures from Pop Mart and BE@RBRICK. This is particularly evident in brands like CLOT, BAPE, and 8ON8, which blend character art into fashion-forward silhouettes.
Design playfulness: The whimsical proportions and cartoonish aesthetic of Labubu are influencing accessory design, knitwear, and appliqués, especially in FW collections. Designers are incorporating childlike motifs and surreal elements to appeal to Gen Z and younger millennials, who value playfulness and irony in their fashion.
Retail and drop strategy: Pop Mart’s lottery and blind-box mechanics are mirrored in how some streetwear brands have begun to experiment with “mystery” or gamified product drops, increasing the thrill of acquisition.
‘Blind boxes’ fuels scarcity-driven demand
Central to Labubu’s success is the strategic use of scarcity. Sold primarily in blind boxes, each containing a random figure and entices consumers with the possibility of obtaining rare editions. This uncertainty fuels repeat purchases and fosters a sense of urgency as collectors strive to complete their sets or acquire limited-edition pieces.
Several infuencers, celebrities and fashion enthusiasts have been seen with Labubu figures, further driving consumer demand. Thousands of unboxing videos have surfaced online of consumers ‘unboxing’ their blind boxes in an attempt to secure a rare.
The blind box model, combined with limited releases and exclusive collaborations, creates a marketplace where demand often outpaces supply, driving up both the perceived and actual value of the toys.
For instance, ‘The Monsters’ series collaborated with Coca-Cola for a limited edition, with demand severely outpacing supply. Several of these can be found on resale websites for a premium.
The impact of the scarcity is evident in the secondary market, where resale prices can soar. The figures have also prompted a spark in accessory-related business such as acrylic casing, novelty car seats, doll clothing, storage racks and more.
Even among the collection, certain Labubu figures have been known to fetch prices significantly higher than their retail value, reflecting the demand and the emotional investment of collectors. This phenomenon underscores the economic principle that scarcity, when coupled with desirability, can lead to inflated valuations.
Emotional spending and consumer behaviour
Labubu’s appeal extends beyond its physical attributes, it taps into the emotional psyche of its consumers. For many, acquiring a Labubu seems to be more than a mere transactional act.
The excitement of unboxing, the sense of belongingness to a community of collectors and the anticipation to discover a rare figure are all factors that contribute to the emotional value associated with the toy. The emotional connection often leads to spending behaviours that transcend rational economic considerations, as individuals invest in the toy not just as a product but as a symbol of personal identity and social affiliation.
“Consumers are increasingly motivated by the collectibility and narrative around products, even in fashion. They want to “own a story,” not just an object. Labubu offers lore, rarity, and aesthetic distinctiveness — aligning with the “emotional ROI” mindset,” Morris said.
The influence of social media has played a big role in the recent spike in popularisation of the Labubu figures. Platforms like Instagram and TikTok have amplified the figure’s visibility with influencers and celebrities showcasing their collections and fuelling the desire among fans.
This virtual endorsement creates a feedback loop, where the visibility of Labubu on social media platforms drives further interest and consequently higher sales.
The Labubu hashtag on TikTok currently houses over 1.3 million videos, featuring celebrities, influencers, fashion enthusiasts and more.
Beyond its status as a collectible, Labubu has emerged as a cultural icon and, for some, a financial asset. The toy’s integration into fashion, with figures adorning luxury bags and accessories, elevates its status from mere plaything to a statement piece. Collaborations with high-profile brands and appearances at events like Milan Fashion Week have cemented Labubu’s position in the fashion space.
“Luxury fashion is increasingly absorbing elements of pop culture and collectibles to remain culturally relevant. The Labubu phenomenon is unlikely to dominate high fashion in terms of runway presence but could influence the luxury sector in three strategic ways,” Morris explained.
Collaborative crossovers: As seen with Loewe x Spirited Away or Gucci x Doraemon, luxury houses are open to character collaborations that drive cultural capital. A Labubu x luxury brand limited capsule could easily generate hype in East Asian markets where these dolls command cult status.
Emotional luxury: High-end fashion is moving beyond exclusivity into emotional resonance. Labubu evokes a sense of belonging, identity, and emotional memory, which aligns with luxury’s newer paradigm: storytelling over logos.
Collectible packaging and merchandising: Expect to see luxury adopting collectible-style packaging (think mini figures, charm accessories, or blind-box gift incentives) inspired by Labubu’s rise, especially in fragrance, beauty, and holiday gifting collections.
A cultural symbol or a potential financial asset?
From an investment perspective, certain Labubu figures have appreciated significantly in value. Collectors view these rare editions as assets that may yield returns over time, similar to art or vintage collectibles. The dual role – as both a cultural symbol and a potential financial asset – adds layers of complexity to Labubu’s appeal, attracting a diverse demographic ranging from fashion enthusiasts to investment-savvy collectors.
“I think it’s stemming from a confluence of visual nostalgia, underground aesthetics, and hybrid cultural crossover appeal. This duality aligns with key fashion subcultures — particularly those in Japan, Korea, and parts of China — where cute-meets-creepy has long been a compelling aesthetic,” Morris explained.
According to reports from China’s local media, Labubu’s success last year drove The Monsters’ revenue to 3 billion yuan ($415.2 million), a 726.6 per cent increase from the previous year.
The growth spike has led to the franchise now constituting to 23.3 per cent of Pop Mart’s total revenue, making it the company’s largest Intellectual Property (IP).
Pop Mart released the financial report for Q1 2025 in April, which revealed year-on-year revenue growth of 165-170 per cent. The heightened demand has spiked the company’s stock price 12.5 per cent from its previous high within one week of the announcement.
Revenue figures for the first quarter reveal a sharp surge across all markets – domestic sales in China grew by 95 per cent to 100 per cent, international sales jumped by 475 per cent to 480 per cent, and North America led the charge with a staggering 895 per cent to 900 per cent increase.
“I think Labubu will evolve from a trend into a subcultural staple, not always at the centre of fashion, but a persistent reference point in the language of collectibles, pop fashion, and identity-driven consumer behaviour,” Morris concluded.
