Chinese company Pop Mart is selling millions of collectible figures worldwide, with its Labubu series emerging as a breakout hit. Behind the success lies a carefully crafted business model—though experts warn the craze may not last.
Collectibles from China Conquer the World
At first glance, Pop Mart’s figures look like toys: small creatures with large eyes, pointed ears, and a blend of cute and eerie features. But these are no longer just children’s playthings. Adults now collect Labubu figures, some reselling for hundreds of euros.
The phenomenon has its roots in Chinese youth culture. In recent years, brands like Pop Mart have moved beyond copying Western products, instead developing their own confident style. In China, this trend is known as Guochao, where domestic brands draw on their cultural heritage.
Why the Concept Works
Pop Mart sells its figures not on shelves but in “blind boxes.” Buyers never know which figure they will get; a simple list on the back shows the possible models. To obtain a specific figure, collectors often buy multiple boxes, hoping for luck.
This approach has two effects: a lottery-like thrill and pressure to complete a collection, particularly for limited editions. Many customers end up buying far more than they intended.
Direct-to-Consumer Strategy
Another key to Pop Mart’s success is selling directly—through its own stores or online shop—without middlemen. This reduces costs and increases profit per figure.
Prices illustrate the model: blind boxes cost around $14 in China and between €15 and €40 in Europe, depending on rarity. Especially rare Labubus can fetch hundreds of euros on platforms like eBay.
According to Morgan Stanley, Pop Mart is now one of the fastest-growing brands globally, with a market value exceeding €36 billion—on par with established companies like Adidas.
Social Media as a Marketing Engine
Instead of traditional TV or print ads, Pop Mart relies on social media. TikTok, Instagram, and YouTube are key channels, with “unboxing” videos proving particularly effective—collectors film themselves revealing which figure is inside a blind box.
The reach is enormous. When Thai singer Lisa of BLACKPINK shared her collection, interest surged. Later, international stars like Rihanna and Dua Lipa followed, cementing Labubu as a global trend.
Why Collectors Spend
Even amid rising prices, inflation, and economic uncertainty, many consumers still spend on collectibles. Brand sociologist Oliver Errichiello explains: “Humans are not purely rational consumers. Especially in uncertain times, many want a small, controlled luxury.” Buying a €30–€40 figure signals both self-reward and affordability.
Collecting is timeless. Adults, particularly middle-aged and older men, understand the thrill—from stamps to model cars to coins. The desire for order, completeness, and ownership endures, even as the objects themselves evolve.
Risks of a Short-Lived Trend
Despite its success, Pop Mart faces risks. Social media trends are fleeting; what’s popular today may be forgotten tomorrow. Platforms like TikTok thrive on constant new content, making long-term brand loyalty difficult.
Another challenge: Labubu figures lack a narrative. Unlike Disney or Marvel characters, they have no films, comics, or series. Emotional attachment comes solely from collecting—not from stories passed down through generations.
Strong Numbers, Uncertain Future
Growth remains impressive. In Q1 2025, Pop Mart’s U.S. revenue rose 900%, and Europe saw a 600% increase. Analysts forecast total revenue could reach $6 billion by 2027—a fivefold rise from 2023.
Gross margins are exceptionally high, around 67%, compared with 45% for toy maker Miniso. In the U.S., margins may even hit 75%.
A Smart Business—With an Expiry Date?
Pop Mart has created a remarkable phenomenon: a highly profitable product fueled by social media and emotional consumption. How long the trend lasts, however, is uncertain.
For readers interested in modern business models, Asian brands, and consumer trends, Labubu offers a fascinating glimpse into youth culture and online marketing—showing how emotion and strategy can generate enormous profits.