Core Insights - Labubu has become a phenomenon in the 2025 consumer market, with a unique mint-colored version recently auctioned for 1.08 million yuan, highlighting its global appeal [1][4] - The demand for Labubu has led to significant price increases in the secondary market, with limited editions selling for over 10,000 yuan in China [4] - The popularity of Labubu is driven by psychological factors such as dopamine-driven uncertainty rewards, collection urges, and social currency among consumers [11][16][18] Market Performance - In 2024, Pop Mart opened 38 new stores in mainland China, and its membership grew from 26 million in 2022 to over 46 million by the end of 2024, indicating strong consumer interest [9] - The THE MONSTERS series, featuring Labubu, generated revenue of 3.04 billion yuan in 2024, a staggering year-on-year growth of 726.6% [20][35] - Pop Mart's overall revenue reached 13.038 billion yuan in 2024, with overseas markets contributing 5.066 billion yuan, a 375.2% increase [35] Consumer Behavior - The appeal of Labubu is not solely based on aesthetics; many consumers find the design quirky and even unattractive, yet they are still drawn to the product [11][18] - The "uncertainty reward" mechanism, akin to gambling, encourages repeated purchases as consumers seek the thrill of obtaining rare items [13][14] - Labubu has become a form of social currency, with collectors showcasing their rare finds on social media, enhancing their social status [18][30] Marketing Strategies - Pop Mart employs scarcity marketing, with only 0.69% of hidden variants available, creating a sense of urgency and desire among consumers [31] - Collaborations with popular brands and events have amplified Labubu's visibility, leading to viral marketing successes [34] - The brand's international appeal is bolstered by a diverse team of designers, many of whom have global backgrounds, making Labubu attractive to a wide audience [34] Future Outlook - Despite its current success, there are concerns about the sustainability of Labubu's popularity, as consumer trends can shift rapidly [39] - Analysts predict that Pop Mart's revenue could reach 22.601 billion HKD in 2025, with a net profit of 6.5 billion HKD, reflecting continued growth [38] - The company faces challenges in maintaining its momentum and avoiding the pitfalls of market saturation and changing consumer preferences [39][42]

Core Viewpoint - The article discusses the rise of Labubu as a popular collectible toy, emphasizing the interplay of aesthetic trends, social media influence, and consumer psychology in driving its success [5][15]. Group 1: Aesthetic Trends and Consumer Behavior - Labubu's appeal lies in its "ugly-cute" design, which resonates with the current aesthetic preferences of young consumers [4][6]. - The evolution of aesthetic standards is influenced by power dynamics, where brands like LV shape perceptions of beauty through marketing [5]. - The popularity of Labubu is partly attributed to endorsements from celebrities, such as members of the K-pop group Blackpink, which enhances its desirability [6][7]. Group 2: Psychological Mechanisms Behind Collecting - The dopamine-driven "uncertainty reward" mechanism plays a crucial role in the excitement of unboxing toys, similar to gambling behavior [8][9]. - The collection of toys often follows a series format, triggering the "Zeigarnik effect," where incomplete tasks create a sense of discomfort, motivating further purchases to achieve completion [10]. - Social currency and the desire for recognition drive consumers to showcase their collections on social media, reinforcing their purchasing behavior [11][12]. Group 3: Market Dynamics and Future Outlook - The secondary market for Labubu toys allows consumers to buy and sell rare items, sometimes at significant markups, creating a closed-loop commercial model [14]. - Despite current popularity, the article suggests that Labubu may not maintain its appeal indefinitely due to the fast-paced nature of consumer trends and the need for brands to innovate continuously [15][16]. - The emotional compensation provided by collectible toys reflects a broader societal trend of seeking connection and fulfillment in a rapidly changing world [17][19].