Deep Dive: Labubu mania sweeps the world as Pop Mart toys soar in popularity

Pop Mart is the company behind the hit collectible character Labubu. It was virtually unknown outside mainland China before 2024. Now, some analysts are comparing its success to that of Hello Kitty.

Labubu is a sharp-fanged but cute little monster often sold as a plush clip-on charm for handbags. He has attracted high-profile fans. April marked the debut of the Labubu 3.0 series, which drew long queues in London, New York and Dubai.

For years, there’s been a push [for Chinese companies] to ‘go global’ by exporting heritage and storytelling,” said Chris Pereira. He is the founder and CEO of iMpact, a brand consulting company in Singapore. “But Labubu flips that script. It’s not trying to explain China; it’s just trying to be lovable.”

The constant hype around Labubu has “great similarities” to Hello Kitty, which turned 50 last year, according to JPMorgan Chase. International sales rose more than 480 per cent in the first quarter of this year compared to last year. This growth was led by increases of 900 per cent in the US and 600 per cent in Europe.

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Pereira said the popularity of the intellectual property (IP) opens the door for a wave of Chinese brands to succeed not because they are about China, but because they tap into universal emotions.

Labubu’s rise in popularity is due to a few factors, said Richard Lin. He is the chief consumer analyst at SPDB International, a Hong Kong-based investment bank. “This includes the scarcity of the product itself, which has fuelled spontaneous social-media promotion by those lucky enough to get their hands on the toy,” he said.

The character also appeals to global consumers with its “mischievous, cheeky image” that fans find irresistible, he said. “In today’s context, Hello Kitty might not resonate as much with younger audiences, who tend to look for characters with more individuality and edge,” he added.

Shen Hao is a marketing professor at the Chinese University of Hong Kong. He said that social media fuels the craze for toys like Labubu. “People can easily find others online who have similar interests, to discuss and share photos, and they get a lot of likes or can even trade their toys,” he said. “This creates an immersive experience to interact with each other and feel connected as a group.”

As stunning as Labubu’s success has been, it has decades to go to match Hello Kitty’s staying power. Whether the company can nurture other hit products is still an open question.

Staff writers

1. According to News, which of the following is true?

(1) Labubu’s international sales rose more than 480 per cent compared to last year in the first quarter of this year.
(2) The Labubu 3.0 series drew huge queues in Chile and London.
(3) Pop Mart’s sales rose by 900 per cent in Europe last year.
(4) Pop Mart was mostly unknown outside China until Labubu went viral in 2024.

A. (1), (2) only
B. (2), (3) only
C. (3), (4) only
D. (1), (4) only

2. List TWO reasons why Labubu has become so popular globally.

3. Name TWO ways in which Labubu is being compared to Hello Kitty in News.

1. What is being shown in this cartoon, and what do you think it represents?

2. What makes Labubu different from other popular characters? Explain using News and your own knowledge.

1. What information does this graph tell you?

2. How does the graph relate to the information you learned in News and Issue?

• Passengers have been caught smuggling Labubu and Molly dolls for resale

• Prices are often cheaper abroad due to currency fluctuations, local discounts

Chinese customs authorities have repeatedly stopped suspected smugglers of Pop Mart toys, including its Labubu and Molly series, as prices soar amid a global expansion for the Beijing-based retailer.

Customs agents have stopped undeclared toys many times from passengers “allegedly seeking to profit from resales,” China Daily reported.

In one case, 318 toys were confiscated from three travellers at Changsha Huanghua International Airport in Hunan province. In another, China Daily reported that a passenger at Hefei Xinqiao International Airport in Anhui province was caught with 94 toys, all meant for resale.

Travellers are reportedly buying the toys overseas and bringing them back into China.

Pop Mart’s most popular toys sometimes sell at lower prices abroad than in China because of currency fluctuations or local discounts.

“To put it simply, the high price is both about hype and the effect of international popularity,” said Peng Peng, executive chairman of the Guangdong Society of Reform think tank.

Last month, the retailer announced on Instagram that it would pause sales of its toy line for The Monsters, which includes Labubu dolls, at all its UK stores until further notice. The company mentioned safety concerns following chaotic scenes at some of its stores and reported brawls.

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A Molly figurine, declared by one passenger in China, was valued at the equivalent of US$208 (HK$1,632) but could be resold in China for US$320 (HK$2,511).

A Labubu “hidden edition” doll, once priced at 99 yuan (HK$108), now sells for more than 2,000 yuan (HK$2,182), the report added.

To stop people smuggling the dolls, which can legally be carried through customs in small quantities for personal collections or gifts, would require some effort, Peng said.

“Combating smuggling has always been a difficult problem, but as long as you persist it will be effective, which can be seen in China’s fight against online fraud.”

However, the crackdown is unlikely to escalate, said Joe Simone, a Hong Kong-based lawyer and founder of East IP Limited. Each case will probably end with the traveller paying a fine for inaccurately declaring merchandise, he added. “The authorities, they can only catch so much. How often does customs even look through your luggage?”

Staff writers

1. According to the information in Issue, which of the following is true?

(1) Safety concerns in US stores forced Pop Mart to pause sales of The Monsters.
(2) Customs confiscated 318 toys from one person at an airport in Hunan province.
(3) One declared Molly figurine was valued at US$208 but could be resold for US$112.
(4) Travellers are buying toys overseas to resell in China at a higher price.

A. (1), (3) only
B. (2), (3) only
C. (3), (4) only
D. (2), (4) only

2. Name TWO safety and legal concerns about Pop Mart products discussed in Issue.

3. How are customs agents and retailers responding to the problems mentioned in Issue, and what are some potential outcomes of these measures? Explain using News, Issue and your own knowledge.

intellectual property (IP): creations of the mind used in business. This can include inventions, art, literary work, designs, names and images. IP is protected by laws such as patents, copyrights and trademarks. These laws allow creators and artists to get recognition or money for their work.

scarcity: the limited availability of resources such as supplies, raw materials or labour, which impacts the production of goods and services and their prices

spontaneous: something that is done out of a natural impulse, without having been thought about beforehand.

customs: the checkpoint where travellers must declare goods that they are bringing into a country or territory. This is to make sure the traveller is following local regulations. Customs officers check luggage and documents and can enforce tax laws on restricted items and illegal goods. They may need to pay fees on certain items or have them inspected.

currency fluctuations: changes in the value of a particular currency – the type of money a country uses – compared to another. This can happen due to various factors, including economic changes and global events.

1. D

2. Labubu has gained popularity partly due to its cute yet mischievous appearance and the buzz generated on social media. Richard Lin notes that the toy’s scarcity creates a craze, resulting in higher demand than the available supply. Shen Hao adds that this phenomenon helps individuals with similar interests to connect, form a community, and share photos and stories about their toys. (accept all reasonable answers)

3. The rapid growth of Labubu is comparable to the global popularity of the Japanese mascot Hello Kitty, an icon that has endured for decades. Both characters possess a charming quality, but as Pereira noted, Hello Kitty may appeal more to younger audiences. Additionally, while Labubu has recently garnered considerable attention, Hello Kitty’s long-standing presence in the market remains a significant factor to consider. (accept all reasonable answers)

1. The image depicts a variety of plushies, dolls and toys gathering around a map of the world. On the map, several light bulbs are marked in different locations. This illustrates how dolls and toys, especially those from Pop Mart, are gaining popularity worldwide, with many hotspots emerging. (accept all reasonable answers)

2. Labubu is extremely popular worldwide. The fact that the doll was designed by an artist from Hong Kong and is sold by a company based in Beijing will attract more attention to China. Enthusiasts of dolls and toys may become interested in discovering more toys made in China, which could have a positive impact on the economy, especially if Labubu rises to the same level of popularity as Hello Kitty. This increased interest could also boost tourism to China as more people seek to explore the country’s market and trendy products. (accept all reasonable answers)

1. This graph illustrates the remarkable and rapid growth in revenue for the Beijing-based company Pop Mart. Over just four years, from 2020 to 2024, their revenue increased from 2.51 billion yuan (HK$2.75 billion) to over 13 billion yuan. Notably, the revenue growth from 2023 to 2024 was significant, as it more than doubled.

2. Thanks to social media, especially the popularity of The Monsters toy line and Labubu, Pop Mart products have gone viral not just in their home country but around the world. With long lines forming outside stores and celebrities promoting the toys, these products have gained significant global recognition. This surge in visibility is evident in the substantial revenue growth experienced in just one year. (accept all reasonable answers)

1. D

2. There has been an increase in the amount of Pop Mart toys being smuggled into China as travellers seek to resell them for a profit. Many of these items were not declared when travellers passed through customs. Additionally, it was noted that Pop Mart’s UK locations experienced long queues, and the situation even led to safety concerns, including reports of fights breaking out among shoppers.

3. China is intensifying its crackdown on illegal smuggling by confiscating toys. Customs agents have been intercepting toys that travellers fail to declare, resulting in fines for those individuals. However, according to Simone, it is unlikely that these efforts will escalate further. In the UK, stores are addressing safety concerns by pausing sales of The Monsters toy line.