By South China Morning Post | Created at 2025-03-31 23:03:15 | Updated at 2025-04-02 09:59:53
1 day ago
In the decade since Hong Kong-born artist Lung Ka-sing created Labubu, an adorable, toothy elfin creature, it had remained a niche favourite in art circles until late 2024, when it became a mainstream sensation across mainland China and other parts of Asia.
While its sudden popularity is often attributed to Lisa, a member of the South Korean girl group Blackpink, who was spotted carrying various iterations of the doll, the real force behind the Labubu boom is Pop Mart, the Chinese blind-box company that became the brand’s sole mass-market distributor in 2019. China’s unparalleled toy production value chain, which can quickly turn designs into mass-produced items, also contributed to its success.
These conditions allowed Lung’s idea for a fluffy, rabbit-eared elf with serrated teeth and a mischievous grin to reach millions of fans. According to Pop Mart founder Wang Ning, the company adopted the material of Sofubi, a type of figure made from soft vinyl, to make the figures’ faces more engaging. It is a key attraction that has helped Labubu stand out.
It is one thing for a talented artist to create something original, but quite another to turn that design into a successful brand. Consider Ub Iwerks, the genius cartoonist who drew the first Mickey Mouse. His Steamboat Willie design was appealing, but it took the corporate muscle of Walt Disney to transform it into a pop culture phenomenon for a global audience.
To be sure, Pop Mart’s annual revenue of less than US$2 billion is tiny compared with Disney’s US$90 billion, and the toymaker’s ability to consistently mint new intellectual property (IP) destined for posterity remains to be seen. There are already signs that the Labubu fad has started to cool off. Still, the partnership between Pop Mart and Labubu’s creator has shown that sustainable growth is possible using original cultural products in a process that aligns commercial and artistic interest.
Pop Mart reported that revenues from The Monsters line, to which Labubu belongs, surged over 720 per cent year on year to 3 billion yuan in 2024, making the brand the largest contributor to the blind-box retailer’s revenues. This exceeded Molly, another popular toy line based on a character designed by Hong Kong artist Kenny Wong.
Pop Mart’s revenues more than doubled last year, with a gross profit margin of 67 per cent, making the Hong Kong-listed firm the hottest pick for investors. Its stock price has more than quadrupled in the last 12 months, and its global expansion has been impressive, with overseas revenues surging 375 per cent last year, far exceeding the 52 per cent growth it saw in China.
