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Khaleej Times
21-07-2025
- Business
- Khaleej Times
How Gen Alpha is rewriting the rules of luxury fashion
Just when it seems like the world has finally figured out the inner worlds of Gen-Zers, along comes Gen Alpha. Born roughly between 2010 and 2024, Gen Alpha is the first cohort to be raised entirely in the digital age, by tech-savvy, hyper-connected parents. Although a sizeable chunk of this group may not be earning their own money yet, they influence — and are influenced by — their millennial parents' shopping decisions, giving them early exposure to luxury brands. According to data by US-based media company Razorfish, 'Older Gen Alpha consumers between the ages of 9 and 13 like to shop and influence purchases, with 68 per cent owning a luxury product by the age of 10'. And luxury brands are taking note. Maire (Mo) Morris, CEO, Morris Global Consulting - Fashion & Lifestyle Experts, says that from her experience of working with luxury clients across the GCC and Europe, she's seen 'a clear strategic pivot in 2024–25 where Gen Alpha are almost the co-creators and brand storytellers in a way.' She adds: 'In the UAE market, Gen Alpha is not just influencing, it's driving luxury purchase decisions, especially in affluent families. Take Harvey Nichols new 'Luxury Family Lounge' for instance, which offers styling services to parents and their kids as a luxury family experience — complete with branded snacks, game tablets and a mini catwalk, turning shopping into a luxury experience for the whole family.' Digital natives explore virtual luxury Gen Alpha and Gen-Z are both children of the Internet, but there is a distinct difference in the way they consume it. Fashion pundits point out that while the latter tends to prefer platforms like TikTok, Snapchat and Instagram, the former's favourite haunts online are Roblox, Minecraft, Zepeto, and Fortnite. They create digital avatars and engage in everything from trying on virtual luxury fashion items to something slightly more mundane like completing school assignments. They are also more likely to choose brands that invest in new-age technology like augmented reality, virtual reality and artificial intelligence. Hence, it's no surprise that brands like Gucci, Burberry, Prada and Balenciaga have explored in-game marketing or partnered with such popular platforms to deliver interactive, virtual experiences like 'virtual fitting rooms and fashion shows'. Luxury marketing is undergoing a 'radical transformation', points out Morris, as it moves away from celebrity-driven campaigns to 'immersive, co-creative, and gamified engagement'. 'Prada's collaboration with Minecraft this year is a great example of gamified luxury targeting Gen Alpha where in-game achievements were rewarded with discounts. And Moncler's 2025 tie-up with Pokémon was a strategic hit across the GCC and Asia, blending nostalgia for millennial parents and cool-factor appeal for kids,' she says. 'And from a consulting perspective, my team is now developing content pipelines for YouTube Kids and Roblox integrations as part of the 2025-26 strategy roadmap for our GCC luxury brands.' 'Brands are very aware of the importance of these games and technologies, if they want to engage with the younger cohorts,' explains Marguerite Le Rolland, Global Insight Manager — Fashion, at the market research company Euromonitor International. Rolland authored an article titled Generation Alpha: How Fashion Players Can Target Tomorrow's Consumers, where she cites other examples of fashion brands experimenting with virtual stores – like, Spanish retailer Mango's Mango Teen products in Roblox's Outfit Shopping Mall, where 'the platform's users can try on and purchase digital garments'. 'When I look at all the metaverses and gamification experiences, it seems to speak more to the Gen Alphas who are much more into these platforms,' she adds. Amit Keswani, Chief Omni-channel Officer, Chalhoub Group, explains: 'Brands are prioritising personalisation, exclusive events and purpose-driven storytelling to build deeper, more authentic connections with younger, values-driven audiences. On our side, we have prioritised these exclusive viewings with styling lounges where we invite customers behind closed doors and offer them a variety of brands, all done in an intimate setting to understand customers better.' 'Gen Alpha's affinity for gamified e-commerce, virtual try-ons, and AI-curated content is pushing brands to innovate far beyond traditional touchpoints,' he adds. Blurring the line between real and virtual When we speak, Rolland points out that although Gen Alpha likes such virtual experiences, they also want their online world to spill over into the real world as seen in the case of the Minecraft franchise, which now includes a movie, merchandise and an immersive experience in cities like London and Dallas. 'So, in fashion, experiential shopping is super important and it needs to be visually stunning, engaging and easy to share on social media. We'll see more investments in these real-life experiences which Gen Alpha typically responds well to,' she adds. It might be unfair to generalise an entire generation, but Gen Alpha generally gravitates toward brands that are seen as cool, sustainable and inclusive of diverse body shapes, sizes and skin tones. And as Rolland points out, they do not hesitate to express their disappointment online if they feel like brands don't represent them well enough. Breeding brand loyalty Morris explains that luxury companies understand that 'early exposure to a brand's world builds long-term loyalty'. 'Balenciaga's Fall 2024 activation with Fortnite, where they launched a real-life capsule collection that mirrored the in-game items, wasn't just about selling skins (or, virtual outfits or costumes) — it was about embedding the brand into the cultural memory of an 11-year-old who'll make their first designer sneaker purchase by 16.' Rolland also points out that more luxury fashion brands will transform into lifestyle brands by branching out into sectors like hospitality, food service and bespoke travel. This strategy is not targeted at Gen Alpha and is more of a 'short-term decision to boost revenue streams, to diversify, and limit risks', but it will nevertheless influence younger customers by delivering brand-driven experiences that have great recall value. For instance, a 10-year-old might be too young to buy Tiffany jewellery, but she will definitely remember having a lovely time at Tiffany's Blue Box Cafe as a child. Sarah Silsbury, a Dubai-based stylist, personal shopper and image consultant who has curated looks for leading brands in the UK and UAE, too, agrees. 'Tiffany & Co.'s 'Return to Tiffany' silver range acts as a gateway collection, designed to capture a younger audience early in their luxury journey, giving them that first taste of the Tiffany magic without the hefty price tag,' she explains. 'It still feels special, still carries that iconic blue-box moment, but it's more within reach. The hope, of course, is that once they're in, they'll stick with the brand as they grow up and eventually come back when they're shopping for engagement rings and proper grown-up jewellery.' Silsbury also explains that most of her clients have Gen Alpha kids, who they end up shopping for. 'Gen Alpha is younger and often exposed to luxury through their family's purchasing habits. There are lots of 'mini-me' collections now — brands like Gucci, Dior and Balenciaga have all launched kidswear that mirrors adult collection,' she says.
Arabian Business
16-05-2025
- Entertainment
- Arabian Business
Labubu: What the ‘Monster' doll says about modern consumerism, emotional spending, social media hype
A new trend has taken social media by storm – the Labubu, designed by Hong Kong artist Kasing Lung and marketed by Chinese company Pop Mart. This whimsical 'monster' doll has gaining popularity around the world. Usually seen hooked on designer handbags, the Labubu seems to exemplify the power of scarcity-driven hype, emotional spending and the shifting dynamics of consumer behaviour. 'Its limited availability, serialised drops, and distinctive character design echo the exclusivity and hype strategies used in streetwear and sneaker culture. Collaborations with fashion brands and appearances on social media by niche influencers have further embedded Labubu in the fashion-collector psyche,' Maire (Mo) Morris, CEO, Morris Global Consulting, said in an exclusive interview with Arabian Business. According to marketing company Fabric Academy, 'At the heart of Labubu's appeal is psychology. These toys tick off several cognitive boxes that fuel consumer desire. First: the surprise. Sold in 'blind boxes', Labubus tap into the psychological principle of variable reward – the same mechanism that keeps us addicted to slot machines and Instagram likes.' 'When supply is low, perceived value skyrockets. It's basic behavioural economics, but boy does it work. Add in resale culture and collectors dropping serious cash for ultra-rare versions, and you've got a recipe for obsession,' it explained. From folklore-inspired character to global phenomenon The Labubu doll has transcended its origins to become a global cultural phenomenon. The journey began with artist Lung's fascination with Nordic folklore and his desire to create a character that embodied both mischief and charm. Initially introduced in 2015, the character gained significant traction following a collaboration with Pop Mart. This partnership propelled Labubu into the realm of collectible art toys. The allure of Labubu seems to be not only in its design but also in its embodiment of a broader cultural narrative, resonating with themes of individuality and nostalgia. The 'monster'-like doll retails for around $25. However, with the skyrocketing demand, the dolls are oftentimes out of stock in store. Resellers have been quick to jump on the trend, with a single doll selling for up to three times the retail price. Mad Kicks UAE, a resale store for sneakers and streetwear, stock the Labubu figures for AED300 a piece and a price tag of AED1,500 for the 'blind box' which comes with six different pieces. Morris explained that the Labubu collection has influenced fashion collections and streetwear in recent seasons, in numerous ways: Graphic print and character merchandising: Brands, especially in Asian markets and global streetwear, are releasing capsule collections featuring character-driven prints — not only Labubu but similar figures from Pop Mart and BE@RBRICK. This is particularly evident in brands like CLOT, BAPE, and 8ON8, which blend character art into fashion-forward silhouettes. Design playfulness: The whimsical proportions and cartoonish aesthetic of Labubu are influencing accessory design, knitwear, and appliqués, especially in FW collections. Designers are incorporating childlike motifs and surreal elements to appeal to Gen Z and younger millennials, who value playfulness and irony in their fashion. Retail and drop strategy: Pop Mart's lottery and blind-box mechanics are mirrored in how some streetwear brands have begun to experiment with 'mystery' or gamified product drops, increasing the thrill of acquisition. 'Blind boxes' fuels scarcity-driven demand Central to Labubu's success is the strategic use of scarcity. Sold primarily in blind boxes, each containing a random figure and entices consumers with the possibility of obtaining rare editions. This uncertainty fuels repeat purchases and fosters a sense of urgency as collectors strive to complete their sets or acquire limited-edition pieces. Several infuencers, celebrities and fashion enthusiasts have been seen with Labubu figures, further driving consumer demand. Thousands of unboxing videos have surfaced online of consumers 'unboxing' their blind boxes in an attempt to secure a rare. The blind box model, combined with limited releases and exclusive collaborations, creates a marketplace where demand often outpaces supply, driving up both the perceived and actual value of the toys. For instance, 'The Monsters' series collaborated with Coca-Cola for a limited edition, with demand severely outpacing supply. Several of these can be found on resale websites for a premium. The impact of the scarcity is evident in the secondary market, where resale prices can soar. The figures have also prompted a spark in accessory-related business such as acrylic casing, novelty car seats, doll clothing, storage racks and more. Even among the collection, certain Labubu figures have been known to fetch prices significantly higher than their retail value, reflecting the demand and the emotional investment of collectors. This phenomenon underscores the economic principle that scarcity, when coupled with desirability, can lead to inflated valuations. Emotional spending and consumer behaviour Labubu's appeal extends beyond its physical attributes, it taps into the emotional psyche of its consumers. For many, acquiring a Labubu seems to be more than a mere transactional act. The excitement of unboxing, the sense of belongingness to a community of collectors and the anticipation to discover a rare figure are all factors that contribute to the emotional value associated with the toy. The emotional connection often leads to spending behaviours that transcend rational economic considerations, as individuals invest in the toy not just as a product but as a symbol of personal identity and social affiliation. 'Consumers are increasingly motivated by the collectibility and narrative around products, even in fashion. They want to 'own a story,' not just an object. Labubu offers lore, rarity, and aesthetic distinctiveness — aligning with the 'emotional ROI' mindset,' Morris said. The influence of social media has played a big role in the recent spike in popularisation of the Labubu figures. Platforms like Instagram and TikTok have amplified the figure's visibility with influencers and celebrities showcasing their collections and fuelling the desire among fans. This virtual endorsement creates a feedback loop, where the visibility of Labubu on social media platforms drives further interest and consequently higher sales. The Labubu hashtag on TikTok currently houses over 1.3 million videos, featuring celebrities, influencers, fashion enthusiasts and more. Beyond its status as a collectible, Labubu has emerged as a cultural icon and, for some, a financial asset. The toy's integration into fashion, with figures adorning luxury bags and accessories, elevates its status from mere plaything to a statement piece. Collaborations with high-profile brands and appearances at events like Milan Fashion Week have cemented Labubu's position in the fashion space. 'Luxury fashion is increasingly absorbing elements of pop culture and collectibles to remain culturally relevant. The Labubu phenomenon is unlikely to dominate high fashion in terms of runway presence but could influence the luxury sector in three strategic ways,' Morris explained. Collaborative crossovers: As seen with Loewe x Spirited Away or Gucci x Doraemon, luxury houses are open to character collaborations that drive cultural capital. A Labubu x luxury brand limited capsule could easily generate hype in East Asian markets where these dolls command cult status. Emotional luxury: High-end fashion is moving beyond exclusivity into emotional resonance. Labubu evokes a sense of belonging, identity, and emotional memory, which aligns with luxury's newer paradigm: storytelling over logos. Collectible packaging and merchandising: Expect to see luxury adopting collectible-style packaging (think mini figures, charm accessories, or blind-box gift incentives) inspired by Labubu's rise, especially in fragrance, beauty, and holiday gifting collections. A cultural symbol or a potential financial asset? From an investment perspective, certain Labubu figures have appreciated significantly in value. Collectors view these rare editions as assets that may yield returns over time, similar to art or vintage collectibles. The dual role – as both a cultural symbol and a potential financial asset – adds layers of complexity to Labubu's appeal, attracting a diverse demographic ranging from fashion enthusiasts to investment-savvy collectors. 'I think it's stemming from a confluence of visual nostalgia, underground aesthetics, and hybrid cultural crossover appeal. This duality aligns with key fashion subcultures — particularly those in Japan, Korea, and parts of China — where cute-meets-creepy has long been a compelling aesthetic,' Morris explained. According to reports from China's local media, Labubu's success last year drove The Monsters' revenue to 3 billion yuan ($415.2 million), a 726.6 per cent increase from the previous year. The growth spike has led to the franchise now constituting to 23.3 per cent of Pop Mart's total revenue, making it the company's largest Intellectual Property (IP). Pop Mart released the financial report for Q1 2025 in April, which revealed year-on-year revenue growth of 165-170 per cent. The heightened demand has spiked the company's stock price 12.5 per cent from its previous high within one week of the announcement. Revenue figures for the first quarter reveal a sharp surge across all markets – domestic sales in China grew by 95 per cent to 100 per cent, international sales jumped by 475 per cent to 480 per cent, and North America led the charge with a staggering 895 per cent to 900 per cent increase. 'I think Labubu will evolve from a trend into a subcultural staple, not always at the centre of fashion, but a persistent reference point in the language of collectibles, pop fashion, and identity-driven consumer behaviour,' Morris concluded.
