Labubu’s Marketing Strategy, Revenue Model | Labubu and the Psychology of Viral Marketing

The marketing strategy for the collectible toy Labubu, produced by Pop Mart, focuses on creating emotional connection, scarcity, and community engagement to fuel consumer desire and virality. The success relies on a mix of product-driven psychology and strategic hype marketing. 

Labubu: From Quirky Art Toy to Global Phenomenon

Who Created Labubu?

Labubu was conceptualized by artist Kasing Lung, a Hong Kong illustrator heavily influenced by Nordic mythology. Originally featured in his “The Monsters” storybook series, Labubu gained life—and popularity—as a collectible toy from 2015 under How2Work, then skyrocketed after a partnership with Pop Mart in 2019. Labubu now features over 300 designs ranging from small vinyl figures to rare mega editions, with one fetching $170,000 at auction.

• “Ugly-cute” character design: Labubu was created by Hong Kong artist Kasing Lung, who was inspired by Nordic folklore. The doll’s distinctive, slightly mischievous appearance—with big, elf-like ears, large eyes, and a toothy grin—resists traditional cuteness and instead offers a quirky charm that resonates with Gen Z and millennial consumers.
• Emotional storytelling: Each new Labubu series release comes with its own backstory, theme, and moods, making it more than just a toy. This narrative depth helps collectors feel an emotional bond with the character, viewing it as a part of their own story or identity.
• Blind box gamification: At the core of the strategy is the blind box model, where customers buy a sealed, unmarked box without knowing which variant they will receive. This creates a gamified, thrilling unboxing experience that triggers excitement and encourages repeat purchases in the hope of completing a set or finding a rare version.
• Secret “chase” figures: Within each blind box series, certain variants are far rarer than others. This adds a layer of suspense and exclusivity, driving obsessive collecting behavior and boosting the resale value of the hard-to-find chase figures.

• Limited edition drops: Pop Mart releases Labubu collections in limited quantities and for specific, timed events, using “hunger marketing” to induce fear of missing out (FOMO). These drops create a sense of urgency, with collectors lining up at stores and refreshing websites to secure a new release.
• High resale value: The intentional scarcity, especially of secret and limited editions, has created a robust secondary market. Rare Labubus are traded and resold for many times their original price, which reinforces their status as a coveted collectible and drives further demand.
• Strategic collaborations: Pop Mart partners with popular IP, artists, and luxury brands to release exclusive co-branded collections. These collaborations, with names like Disney and Coca-Cola, attract new audiences and add aspirational value to the products.

• User-generated content (UGC): The brand encourages and leverages user-generated content across social media platforms like TikTok, Instagram, and Xiaohongshu. Collectors eagerly share videos of themselves unboxing their purchases, trading figures, and styling the dolls, generating organic buzz and turning fans into brand ambassadors.
• Celebrity endorsements: Organic endorsements from celebrities and influential figures have been a powerful marketing tool. When superstars like BLACKPINK’s Lisa and Rihanna were seen with Labubu accessories, it created massive social virality and made the toys into a pop culture fashion statement.
• Omnichannel retail strategy: Pop Mart reaches its customers through a diverse mix of channels.
  • Offline: The brand operates themed flagship stores, “Roboshop” vending machines, and pop-up events in high-traffic areas.
  • Online: Sales are conducted through official websites, e-commerce apps like Tmall, and social media mini-programs.
• Online community platform: Pop Mart has developed its own social app, Paqu, where fans can share their collections and trade figures. This gives collectors a sense of belonging and creates a dedicated community for the brand. 

Marketing Strategy That Sparked Obsession

1. Blind Box Gamification
   Toys are sold in sealed blind boxes, creating excitement around the surprise reveal. It turns buying into a game, encouraging repeat purchases.
   

2. Scarcity-Driven Hype
   Limited-edition releases and ultra-rare variants fuel FOMO and resale value—some re-sell at 3–10× the original price.
   

3. Emotional & Aesthetic Appeal (“Ugly-Cute”)
   Labubu’s mischievous yet endearing design forms a strong emotional connection—striking a perfect balance between whimsy and collectible charm.
   

4. Community & Unboxing Culture
   Fans create large-scale engagement via unboxing videos, online swaps, and collector forums. The experience becomes social and participatory.
   

5. Celebrity Endorsements & Social Buzz
   A notable driver was Lisa (BLACKPINK), whose Instagram post with Labubu ignited global demand. Other celebrities like Rihanna and Kim Kardashian followed suit.
   

6. Narrative-Driven Branding
   Labubu isn’t just a toy—it’s a character with personality. Pop Mart created a story and universe around it, deepening emotional resonance.
   

7. Global Localization and Innovation
   Pop Mart localized designs for different markets, launched pop-up stores, collaborations, and even animation ventures.
   

Revenue Model and Financial Impact

• In 2024, Labubu (under “The Monsters” series) contributed RMB 3.04 billion (~US$430 million)—about 23.3% of Pop Mart’s total revenue.

• In H1 2025, its revenue surged to RMB 4.81 billion (~US$670 million)—making up 34.7% of total income.
  

• Pop Mart’s overall marketing-driven march to success led to a tripling of H1 2025 profits, with 40% of sales from overseas markets.

• The “happiness market” tactic—tapping into affordable joy and anticipation—played a key role.
  

• Labubu was deemed a “legal dopamine casino,” generating massive profits and retail frenzy akin to Beanie Baby mania.
  

Moreover, creator Wang Ning, Pop Mart’s founder, soared into billionaire status thanks to Labubu’s success—his wealth rocketing past Alibaba’s Jack Ma.

Step-by-Step Marketing Blueprint (What Marketers Can Learn)

1. Conceal the outcome to drive curiosity (blind box model)

2. Inject scarcity and time-limited drops for urgency

3. Craft emotionally engaging design/personas

4. Fuel community participation via social media and content

5. Secure organic celebrity or influencer endorsements

6. Build brand narrative beyond product (story, world-building)

7. Scale globally while localizing design and approach

8. Constantly innovate with animations, collabs, event marketing
   

Key Takeaways for Marketers

• Create real scarcity, not artificial hype—Labubu genuinely limits editions, fueling trust.

• Gamify purchasing to transform buying into an experience.

• Let customer communities co-create the brand via content and storytelling.

• Leverage emotion-driven aesthetics to resonate deeper than functionality.

• Cultivate brand aspirational value, not just product features.

• Use celebrity or influencer leverage selectively and authentically.

Final Thoughts

Labubu’s meteoric rise from indie art character to global collectible is more than a success story—it’s a masterclass in emotional branding, scarcity marketing, and social hype dynamics. By integrating surprise, scarcity, design, and community, Pop Mart crafted a cultural phenomenon that transcends toys. For marketers seeking inspiration, Labubu’s strategy teaches that impactful branding isn’t just about product—it’s about the experience, emotions, and narratives you build.