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David Chao

Who could have predicted the meteoric rise of the Labubu doll, which has gained cult status globally after capturing hearts in China? At a recent Beijing auction, a Labubu figurine sold for over 1 million yuan (US$139,350), cementing its place as a pop culture phenomenon.
The global craze may prove fleeting. But the significance of the Labubu phenomenon lies in what it reveals about China’s consumer culture as it evolves to become more expressive, brand-savvy and globally influential. No longer driven solely by price or practicality, Chinese consumers, especially Generation Z, seek something more meaningful: emotional resonance, personal identity and joy.
This shift is reshaping how brands connect and elevating storytelling, design and cultural relevance as key drivers of value.
The last Singles’ Day shopping festival revealed a surge in spending on toys and collectibles, particularly those linked to popular games and animated series. In China, this phenomenon is known as “IP consumption”: where consumers engage emotionally with intellectual property, not just as fans but also as collectors and lifestyle participants. More than a fleeting trend or impulse buying, it signals a deeper cultural and psychological shift – one closely tied to broader economic changes.
For decades, China’s economic growth was powered by a massive investment in manufacturing. As companies raced to cut costs rather than innovate, the result was a marketplace where function and price reigned supreme, with emotional appeal often an afterthought.
But with the investment-led growth model reaching its limits, the authorities increasingly turned to domestic consumption as a more sustainable economic engine, especially in an uncertain global trading environment. Now, boosting consumption and expanding domestic demand are a top priority.


China has declared its ambition to become a “mega-sized consumer powerhouse” and the government is supporting this transition with subsidies and other incentives. It reflects a broader recognition that growth will depend less on factories and infrastructure, and more on innovation as well as consumer confidence and emotional engagement. In March, the government released a remarkably detailed plan to turbocharge consumption.
In China today, how a product makes someone feel is becoming just as important as what it does or how much it costs. The era of competing solely on price is giving way to a new age of emotionally driven consumption – and brands that can cultivate lasting relationships with consumers will lead the way.
What sustains a brand or an IP over the long haul? It’s not fleeting trends or viral moments, which may spark attention but rarely build loyalty. The key lies in emotional resonance. This requires sustained engagement through storytelling, shared values, cultural relevance and a deep understanding of what people care about.
Brands that crack the code of emotional relevance gain more than just loyalty. They gain pricing power – an IP premium. It transforms a brand from merely selling products to offering an emotional experience. In a saturated market, it lets a brand stand out, charge more and stay relevant.
Marketing strategies such as limited editions, exclusive drops and brand collaborations can drive repeat purchases and deepen attachment – creating urgency and excitement while fostering a sense of belonging. Over time, loyal customers evolve into brand advocates, amplifying the brand’s reach through social media and word of mouth. This creates a self-sustaining loop of organic growth, where emotional engagement fuels visibility and visibility reinforces emotional connection.

It remains a question if Labubu’s popularity will endure. Building lasting value in creative IP is inherently challenging. Without fresh content, evolving narratives or compelling storytelling, even the most visually striking IPs risk fading away, especially in the fast-moving digital landscape. Moreover, international brands are increasingly vying for IP licences and market share within China, raising the bar for originality, execution and emotional resonance.
Still, the rise in IP consumption represents an exciting new dimension of China’s economy, reflecting the rising incomes, shifting lifestyles and growing appetite for discretionary, emotionally-driven spending.
And Labubu is just the latest example of a globally successful Chinese IP. Other stand-out successes include the animated film Ne Zha 2 and the video game Black Myth: Wukong. They signal the rise of a globally competitive Chinese creative economy, powered by storytelling, design and cultural relevance.
This burgeoning creative IP sector is uniquely positioned for success, thanks to the sheer scale and sophistication of the Chinese market. This vast consumer base serves as a dynamic proving ground where emotionally resonant IP can find their niche and evolve in response to increasingly discerning audiences.


A new generation of Chinese brands is poised to achieve higher margins, deeper consumer loyalty and global recognition. After all, if a brand can thrive in China’s hyper-competitive, trend-sensitive market, why not the world?
Consider the economic and cultural impact of American creative IP in the early 20th century with the Disney and Marvel franchises, or the explosion of Japanese IP in the latter half of the century with Pokémon, Hello Kitty and Studio Ghibli – China stands at a similar inflection point.
More than merchandising empires, these iconic creations are cultural ambassadors and projections of soft power. It is in this space – the hearts, minds and wallets of global consumers – that a new generation of Chinese companies may prove their enduring value. By creating emotionally resonant, culturally rich IP, Chinese companies have the potential to not only shape global taste but also redefine China’s role in the global creative economy.


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Global Labubu craze reflects China’s creative and consumption ambitions

This Labubu figurine, displayed before an auction in Beijing, on June 6, was sold for 1.08 million yuan (US$150,499), setting a record for the most expensive Labubu sold. Photo: Reuters

A dessert in the shape of a Labubu figurine is served in a restaurant in Moscow, Russia on June 27, yet another sign of its global popularity. Photo: Reuters

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The Jiangji Distillery is a brewing base for Chinese liquor, located in Baisha town, Chongqing. Photo: Handout

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Visitors check out the Longi Green Energy Technology booth at the 2025 Intersolar Europe exhibition in Munich, Germany, on May 12. Photo: Xinhua

Chinese and American factory workers at the Fuyao Glass factory in the Dayton, Ohio, in a still from the 2019 documentary American Factory. Photo: Netflix.

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In China’s demanding market that’s shifting towards emotionally driven spending, creative brands that succeed can look to conquer the world


In China’s demanding market that’s shifting towards emotionally driven spending, creative brands that succeed can look to conquer the world.


China

China consumption

Consumers

Intellectual property in China

China manufacturing

China’s film industry

Video gaming

Retailing

China society

Fashion

Disney

Trending in China

China exports

Gen Z

China’s soft power

Japan

United States

Marvel

Studio Ghibli

Labubu

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


Global Labubu craze reflects China’s creative and consumption ambitions

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}In China’s demanding market that’s shifting towards emotionally driven spending, creative brands that succeed can look to conquer the world

In China’s demanding market that’s shifting towards emotionally driven spending, creative brands that succeed can look to conquer the world