Why The Labubu Craze Became A Nostalgic Social Currency

Forbes

2 days ago

PARIS, FRANCE - JUNE 12: Close-up detail view of seven Labubu monsters / charms / dolls / plus from ... More "Big Into Energy" collection : Loyalty, Happiness, Luck, Hope, Serenity, Love an Secret, during a street style fashion photo session, on June 12, 2025 in Paris, France. (Photo by)
The distinctive grin of Labubu, a small, elf-eared creature with serrated teeth, has become widespread across social media feeds, celebrity red carpets, and fashion shows worldwide. What began as a collectible toy from Hong Kong-based Pop Mart has evolved into something far more complex: a cultural phenomenon that generated $423 million in revenue for the company in 2024 alone, transforming a playful figurine into a coveted symbol of exclusivity and insider knowledge.
People wait in line to visit the new Pop Mart store selling Labubu toys at a shopping mall in Berlin ... More on July 25, 2025. Labubu is a brand of collectible designer plush toy monster elves created by Hong Kong-Dutch designer Kasing Lung and marketed by and sold exclusively at China-based retailer Pop Mart. (Photo by Tobias SCHWARZ / AFP) (Photo by TOBIAS SCHWARZ/AFP via Getty Images)
This isn't just another toy craze. The Labubu mania reveals something deeper about consumer psychology, nostalgia, and how objects become vessels for social status in the digital age. Through three distinct lenses—as a nostalgic product, a form of social currency, and a fleeting fashion statement—the Labubu phenomenon offers insights into modern consumer behavior and the mechanics of viral culture.
The Power of Labubu's Nostalgic Design
At the heart of Labubu's appeal lies a sophisticated understanding of nostalgia and emotional resonance. Created by Hong Kong-born artist Kasing Lung in 2016, the character draws from Nordic folklore and European fairy tales, creating what author and fashion historian Robert Ossant describes as a 'fascinating combination of cute and ugly that taps into the 90s and Y2K aesthetic of Furbies, Garbage Pail kids, Troll dolls and cartoons like Rugrats and Ren & Stimpy.'
Lung, born in 1972, spent part of his childhood in the Netherlands, and his design philosophy blends childhood memories with universal mythological elements. The result is a character that feels simultaneously new and ancient or something that resonates across cultural boundaries while tapping into collective childhood memories.
"The large eyes and tiny nose resemble childlike characteristics, upping the cute factor and appealing to the anime and manga trends we're seeing in the current zeitgeist," explains Nina Vargas, a global beauty strategist, in her analysis of the toy's psychological appeal. These 'anthropomorphic qualities' don't just make the character endearing, but they create an emotional bridge that allows consumers to project feelings and memories onto the object.
The timing of Labubu's global breakthrough in 2024-2025 wasn't accidental. After nearly a decade of relative obscurity, the character found its moment during a period when consumers were particularly receptive to nostalgic comfort items. In fact, if you scroll TikTok, you will see millions of videos of consumers listening to 90s music, revisiting fashion trends from that decade, or rewatching their childhood favorite movies and TV shows. The Labubu's ability to evoke childhood security while remaining contemporary enough for adult fashion sensibilities created the perfect storm for viral adoption.
Labubu Is An Exclusive Social Currency
Perhaps no aspect of the Labubu phenomenon is more revealing than its transformation into a form of social currency or an investment piece. The collectible toy market has long understood the power of scarcity, from Pokémon cards, Barbies and Beanie Babies, but Labubu has elevated this concept to new heights through strategic use of "blind box" purchasing and limited releases.
"The Labubus became a social currency because to have a rare Labubu communicates an insider knowledge of trends and value. It began as 'if you know you know' (IYKYK) style statement and a widely understood, talisman of taste," Ossant explains.
CANNES, FRANCE - MAY 17: Zufi Alexander wears an all Miu Miu look made of butter yellow long summer ... More dress and straw Miu Miu bag with attached Labubu bag charms during day five of the 78th Cannes Film Festival on May 17, 2025 in Cannes, France. (Photo by)
The economics are straightforward yet powerful: initial drops are priced modestly (around $30), but artificial scarcity quickly drives secondary market prices to multiples of their original value. This creates multiple tiers of social signaling. Owning any Labubu demonstrates cultural awareness, but owning a rare variant or paying premium resale prices communicates having insider knowledge, and frankly, the financial means.
The unboxing ritual central to Labubu culture amplifies this social currency effect. "The unboxing and reveal of which character emerges from the packaging intrigues the viewers, making them eager to seek their own unwrapping experience in the hopes of having their own (hopefully rare) character," Vargas notes. Social media feeds filled with unboxing videos create a feedback loop of desire and FOMO (fear of missing out) that drives continued purchasing.
Retail strategist Jeanel Alvarado, Founder & CEO at RETAILBOSS, identifies a crucial parallel: "Many collectors of Labubu for instance turned out to be luxury buyers. Affluent shoppers who typically seek out rare watches, handbags and limited edition pieces." This crossover reveals how Labubu functions as what Alvarado calls "recession-core": a lower-cost luxury that satisfies the same psychological needs as expensive handbags or watches during times of economic uncertainty.
How Labubu Transcends Style And Fashion
While Labubus have become ubiquitous fashion accessories, dangling from designer bags and celebrity outfits, their role transcends traditional fashion logic. Rather than following seasonal trends or aesthetic movements, it is a commentary on consumption, and generational divides.
PARIS, FRANCE - MARCH 08: A guest wears a burgundy bordeaux woven Bottega Veneta Andiamo leather ... More bag, light blue Labubu bag charm, cream Labubu bag charm, outside Elie Saab, during the Paris Fashion week Women's Fall/Winter 2025-2026 on March 8, 2025 in Paris, France. (Photo by)
"Labubus represents more of a social statement than a fashion statement," states Anna Pompilio, Strategy Director at Marks. "It shows not only that you're tapped into the micro-culture of the moment, but that you either have the A) time to spend on Pop Mart hunting down your own Labubu or B) the money to spend on a resold one.'
The fashion industry has taken notice. Luxury brands like Burberry and Celine have responded with their own character-based accessories, signaling recognition of the trend's commercial potential. However, this mainstream adoption may paradoxically signal the beginning of the end for Labubu's cultural cache.
Ossant sees the trend as serving "as a critique of fashion's most ridiculous extremes, influencer culture and the relentless churn of trends, but also a commentary on different generations." According to him, it's become a tool for millennials to mock Gen Z's seemingly mindless consumerism, while Gen Z uses it to highlight just how much millennials are missing the irony.
SHANGHAI, CHINA - JUNE 09: Labubu figures and dolls are seen on display at a Pop Mart store on June ... More 9, 2025 in Shanghai, China. From Southeast Asia and Europe to the United States and the Middle East, Labubu - the beloved character from Chinese toy company Pop Mart - is taking the world by storm. (Photo by VCG/VCG via Getty Images)
As with most viral phenomena, Labubu's future remains uncertain. The very mechanisms that drove its success such as social media amplification, artificial scarcity, and FOMO-driven purchasing are notoriously fickle and feed into overconsumption. Many, like Ossant, argue that Labubus are an entry level luxury where the value is tied up in rarity and exclusivity rather than actual cost.
"Customers are fatigued with fast-fashion, and collector items and limited edition items have continued to catch waves with limited drops," Alvarado adds. Yet she also acknowledges the fundamental tension: once a trend reaches mainstream saturation, its value as social currency diminishes.
Whether Labubu endures or fades, its impact on understanding consumer behavior, social media marketing, and the psychology of collectibility will likely persist. As Alvarado succinctly summarizes: "It shows the value is in the eyes of the beholder, for those who understand the collector and resale market potential for limited items it's a lucrative play, in addition to the clout they can get online. For others it's just an 'ugly toy.'"
A man walks with two Labubu plush toys of Pop Mart hanging from his backpack straps along a ... More pedestrian street on The Bund in Shanghai on July 4, 2025. (Photo by Hector RETAMAL / AFP) (Photo by HECTOR RETAMAL/AFP via Getty Images)