How China's Labubu became Pop Mart's $1.8 billion plush powerhouse

Economic Times

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Labubu, the plush toy from China's Pop Mart is a social media darling, but the toothy little monsters are far from an overnight success. Having appeared a decade ago, Labubus may have finally cemented their place in the collectible toy market for years to come.The Labubu, by artist and illustrator Kasing Lung , first appeared with pointed ears and pointy teeth, in three picture books inspired by Nordic mythology in 2015.In 2019, Lung struck a deal with Pop Mart, a company that caters to toy connoisseurs and influencers, to sell Labubu figurines. But it wasn't until Pop Mart started selling Labubu plush toys on key rings in 2023 that the toothy monsters suddenly seemed to be everywhere, including in the hands of Rihanna, Kim Kardashian and NBA star Dillon Brooks. K-pop singer Lisa of Blackpink began posting images of hers for her more than 100 million followers on Instagram and on TikTok, where Labubu pandemonium has broken out.There are 1.4 million #Labubu TikTok posts and counting, videos of fans unboxing them, showing styles inspired by them, and of course, Labubu cosplay.Fans have latched on to Labubu's mashup of play and fashion, making them accessories on handbags, backpacks and belts, or hanging them from car mirrors."The character has evolved into a collectible and style symbol, resonating with fans who connect with its quirky aesthetic and unique backstory," Emily Brough, Popmart's head of IP licensing in the Americas, said.Labubu has been a bonanza for Pop Mart. Its revenue more than doubled in 2024 to 13.04 billion yuan ($1.81 billion), thanks in part to its elvish monster. Revenue from Pop Mart's plush toys soared more than 1,200% in 2024, nearly 22% of its overall revenue, according to the company's annual report.Aside from their ability to pique the interest of toy aficionados and fashionistas, Labubu latched on to the blind box phenomenon, where the purchaser does not know exactly which version of the plush toy they will get. And Pop Mart made sure there is a Labubu for everyone, regardless of income. Most are priced in a wide rage between $20 and $300, with certain collaborations or limited editions priced higher, according to Brough.Unlike many toys, Labubu devotees include a large number of adults. Buyers aged 18 and over drove a year-over-year increase of more than $800 million in the US toy market in 2024, according to market research firm Circana. Adult shoppers, mostly female, bought the toys for themselves. In 2025's first quarter, toy sales for those aged 18 and over rose 12% from the prior-year period. At $1.8 billion, adults also accounted for the highest spending among all age groups in the quarter.Like many retailers, Pop Mart is actively monitoring negotiations between the US and just about every one of its trading partners as prices may be impacted. The situation with China is at the forefront, with President Donald Trump saying on Friday that the country "violated" an agreement with the United States on trade talks. Right now Pop Mart, whose products are manufactured across Asia, says that it is continuously scaling production and expanding distribution across its online shop, retail stores and blind box vending machines to meet increasing demand.