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Borneo Post
19-06-2025
- Entertainment
- Borneo Post
Beyond blind boxes: What's behind Labubu's global craze?
A resident takes photos of a Labubu toy at the Taipa exhibition area of 'POP MART MACAO CITYWALK' in south China's Macao on June 6, 2025. – Xinhua photo BEIJING (June 20): In the pre-dawn chill outside a New York mall, young fans camped overnight, eager to get their hands on a Labubu doll. In Paris, shoppers carrying Labubu shopping bags posed for photos in front of the Louvre. In Seoul's Myeongdong shopping area, long queues formed not for K-pop stars, but for Labubu. Its theme song echoed in Spanish streets. At the centre of this global craze is a small, sharp-eared figure with jagged teeth and an ambiguous expression – Labubu, a curious creation from China that is capturing the imagination of global youth. The frenzy surrounding Labubu has sparked long queues, thriving secondary markets, and rental services, with some transactions standing out due to their scale. A one-of-a-kind mint-green, human-sized Labubu sold for 1.08 million yuan (about US$150,531) at a Beijing auction last week, setting a new record for the blind box toy as it transitions from pop craze to coveted collectible. 'From world factory to global creative centre' This nine-toothed, punk-cute creature from Pop Mart is more than just a toy. It has become a cultural and commercial force. In 2024, Pop Mart's 'The Monsters' series swept through global markets, generating over 3 billion yuan in revenue, a 726.6 per cent increase from the previous year and the company's most successful IP to date. It is rare for a comic or toy IP to break the culture wall and be embraced by both Asian cultures as well as mainstream Western pop stars and sports stars, according to Jessie Xu, an analyst at Deutsche Bank, which significantly raised its target price for Pop Mart shares on the strength of Labubu's performance. Labubu's rise marks more than a viral toy trend: it signals a broader shift in China's role on the global stage. No longer just a manufacturing hub, China is emerging as a source of original cultural exports. 'Labubu's success marks China's transition from 'world factory' to 'global creative centre',' noted a recent commentary on the website of China's Qiushi Journal, the flagship magazine of the Communist Party of China Central Committee, reflecting on the nation's economic evolution beyond low-cost production. What makes this spiky-toothed imp resonate from Seoul to Spain? Designed by Hong Kong artist Kasing Lung, Labubu defies the traditional traits that are associated with being cute. With large ears and a fixed grin featuring nine pointy teeth, its oddball charm resonates with a young generation that sees itself in its mischievous, soft-hearted persona. 'Labubu's image aligns closely with the way today's consumers express themselves,' said Yu Yiqi, an associate researcher at Fudan University, adding that its blend of mild rebellion – defiant yet harmless – has made this unconventional IP more recognizable, accepted, and embraced by consumers. Pop Mart amplified Labubu's appeal on a global scale. In Thailand, the furry doll was granted the title of 'Amazing Thailand Experience Explorer' by the tourism authority. In Singapore, a Merlion-themed edition sold out almost instantly. What began as a toy has evolved into a kind of cultural conduit, quietly connecting young people across borders. Toys themed on Labubu, a popular furry doll from Chinese toy company Pop Mart, are pictured during the opening ceremony of a new offline store of Pop Mart in Bangkok, Thailand on July 5, 2024. – Xinhua photo The Long game of patience, precision Labubu's explosion wasn't overnight. 'In 2010, Beijing got its first Pop Mart store. I was 23,' 38-year-old Pop Mart's CEO Wang Ning recalled. Early days were fraught. With little recognition, the startup struggled to secure collaborations with established IPs. Yet it developed a simple method to spot potential hits. At art fairs, artist booths with the longest lines were seen as a clear sign of consumer interest. By gathering strong creative talent early on, the little-known company quickly made a name for itself. As the youngest self-made founder on Forbes' 2024 list of Best CEOs in China, Wang's age has led many to view Pop Mart as a young company. In reality, it has been quietly building its presence in the designer toy space for 15 years. Since launching its international expansion in 2018, Pop Mart has steadily advanced its global strategy, with operations now spanning nearly 100 countries and regions. Labubu's success would not have been possible without meticulous iteration. Pop Mart and Lung spent a considerable amount of time refining Labubu, from the initial 'Forest Concert' series to the recently released 'Big into Energy' series, gradually shaping its 'punk-cute' identity into a distinct cultural symbol. The toymaker is not alone in embracing the long game. The animated blockbuster Ne Zha 2 took five and a half years to complete, with more than 4,000 people involved and nearly 2,000 visual effects shots. The hit video game Black Myth: Wukong was developed for over six years, with its creators pouring vast artistic resources into delivering high-end visuals and performance for players. Precision matters. Wang fixated on the smallest details, from store layouts designed to guide browsing flow, to display case placement intended to catch the eye, and maintenance schedules aimed at enhancing the customer experience. 'Innovation is the fundamental guarantee for enterprises to withstand storms and achieve sustainable development,' the Qiushi website commentary noted, underscoring the relentless focus behind Labubu's success. Made in China, designed for the world Labubu's rise to becoming a globally coveted product is rooted in China's vast manufacturing ecosystem. 'As a global manufacturing powerhouse, China has a complete industrial chain and a mature industrial environment, offering significant comparative advantages,' Wang said. More than 70 pe rcent of Pop Mart's production comes from factories in Dongguan, south China's Guangdong Province, the heart of China's toy manufacturing industry. The city is home to some 4,000 toy companies and 1,500 supporting suppliers. It is responsible for producing a quarter of the world's animation merchandise and 85 per cent of China's designer toys. When Labubu introduced an innovative blend of vinyl and plush materials, factories in Dongguan delivered with remarkable precision. They even created separate molds for each individual component. 'If you can make Pop Mart, you can make any designer toy in the world,' a manufacturing partner said. As a leading arts hub in Asia and a regular host of Art Basel, Hong Kong provided the artistic foundation. It was here that Wang discovered talented illustrators like Lung. This model of collaboration between art and manufacturing has propelled China's designer toy industry from contract production to value creation. Customers purchase products at a POP MART store in London, Britain, on May 21, 2025. – Xinhua photo China's pro-consumption policies have provided strong tailwinds for the designer toy industry. A national action plan released in March calls for cultivating 'trendy domestic goods,' while the Ministry of Commerce has been promoting 'IP plus consumption' by developing creative retail spaces and cultural landmarks. The country's designer toy market, valued at roughly 60 billion yuan in 2023, is projected to reach 110.1 billion yuan by 2026, with annual growth rate exceeding 20 per cent. Greater openness is also fueling the cultural exchange crucial to IP growth. China has expanded its unilateral visa-free access programme, allowing travelers from 47 countries to stay for up to 30 days. This has drawn a growing number of international visitors seeking firsthand experiences of Chinese culture. The immersive contact not only deepens global understanding of China's lifestyle, but also fosters an environment where homegrown IPs like Labubu can flourish and succeed on the international stage. Yet, white-hot demand breeds challenges. Frenzied queues in London reportedly led to scuffles, forcing Pop Mart to briefly suspend UK Labubu sales. Similar safety concerns prompted a temporary halt in the Republic of Korea. Pop Mart has publicly distanced itself from speculative frenzy in the second-hand market, reiterating that the company has never – and will never – participate in any form of resale activities involving collectible toys. It also urged consumers to approach purchases with rational expectations. Though often attributed to psychological triggers like unpredictable rewards and fear of missing out, the fascination with blind boxes, according to Wang, stems from something deeper. 'What really matters is the designer toy, the IP, and the story behind blind boxes,' he said, noting that Pop Mart is in the business of trendy designer toys, not just surprise packaging. 'It's not the blind box that hooks people – it's the characters inside, which represent some of China's most attractive consumer IPs.' 'Not every IP will become a hit,' said Yu. 'What matters is that Pop Mart takes a systematic approach to selecting, managing, and supporting IPs, grounded in its role as a trendsetter. 'Trends rise and fall, but a company needs a steady pipeline to consistently deliver value and meet consumer demand.' From scouting more than 350 artists worldwide to growing 13 IPs with each's annual revenue exceeding 100 million yuan, Pop Mart has a clear goal: to keep its IPs alive and constantly evolving. Once aspiring to be 'Disney of China', the company is now working to become 'Pop Mart of the world'. 'Labubu isn't Pop Mart's first red-hot IP,' Yu said. 'Nor will it be the last.' – Xinhua
CNBC
15-06-2025
- Business
- CNBC
China's personal delivery market is on the rise. Only some are already making money
China's large labor force and internet ecosystem have supported fleets of couriers delivering an increasing range of products on demand. U.S.-listed BingEx has taken a unique strategy by dedicating one delivery person for each order, becoming "a pioneer in the dedicated courier service industry," Deutsche Bank analyst Jessie Xu said in a June 10 report that initiated coverage on the stock with a buy rating. By using the Chinese company's app, someone in China can have their suitcase transported across town, or have the courier buy a specific cake and deliver it to a party. The business operates under the brand "FlashEx" or "Shan Song," which means "delivery in a flash" in Mandarin. The brand's name has become a local way to describe the service, just like Kleenex. FlashEx "started recording positive unit operating profit from 3Q23 and has been profitable since then," Deutsche Bank's Xu said, pointing out that most of its competitors still operate at a loss in the one-on-one courier business. On-demand delivery has become a competitive market that logistics companies and e-commerce platforms have expanded into, often with heavy subsidies and piling several orders onto one courier. But even Alibaba expects consumers will want to buy on demand, and in the last several weeks has rolled out a channel for people to buy food, clothes and other products on e-commerce platform Taobao — and get it delivered in as quickly as 30 minutes. Most of FlashEx's competitors are subsidiaries of larger companies with other business lines. U.S.-listed Dada , which was previously a Walmart-backed supermarket delivery business separate from was absorbed into the Chinese e-commerce giant over the last few years. Dada reported loss from operations rose to 2.16 billion yuan in 2024, up from 2.11 billion yuan a year earlier. Earlier this year, launched a campaign in on-demand delivery to compete with food delivery giant Meituan. Both companies reported operating losses for "new" initiatives in the first quarter. Chinese logistics giant SF Holdings has a small intra-city on-demand delivery unit, which contributed to just over 3% of total revenue last year. The segment's revenue rose by 22% from a year ago, while its net profit more than doubled to 132 million yuan . The on-demand delivery market is expected to grow by an average of 13% a year through 2028, a slowdown from 20% annual growth from 2019 to 2023, Xu said in the report. "This growth should be supported by the rapid expansion of Online-to-Offline (O2O) retail, food delivery services, and increasing demand for personalized delivery options." But personal, one-on-one courier services still represents only 4% to 5% of that delivery market, Xu said, predicting 10% annual growth in the next three years. She pointed out that as of the end of 2024, FlashEx had 2.8 million riders serving over 100 million registered customers in 295 cities. U.S.-traded shares of BingEx closed at $3.87 a piece on Friday, for 21% upside to Deutsche Bank's price target of $4.70. However, the stock has plunged more than 50% so far this year after the company grappled with more competition and tepid Chinese consumer spending in the last several months. "FlashEx has strategically exited some 2B businesses since 2H24, as the company is focused more on" unit economics," Xu said. "Management made it clear that the company will not chase pure volume market share gains at the cost of profitability. … This set a positive tone for the company's sustainable growth and profitability in the mid-to-long run." — CNBC's Michael Bloom contributed to this report.
