As legacy brands scramble for cultural relevance in a fragmented global market, a quiet shift is underway. It is not being driven by heritage houses or digital disruptors, but by an unlikely little figure: Labubu, a character at the heart of China-based POP MART’s The Monsters universe. Chances are, you have seen this wide-eyed, bunny-eared, nine-toothed figure in photos on social media or dangling from high-end handbags in cities across the globe. Once a niche art toy, Labubu has become a global cultural commodity, propelled by a fan economy that blurs the line between collectible and luxury symbol.
Conceived by Hong Kong-based artist Kasing Lung, The Monsters first appeared in a Nordic mythology-inspired picture book trilogy in 2015. By 2019, Chinese character-entertainment company POP MART – which generated a reported $1.8 billion in 2024 from franchises like Crybaby, Hacipupu, Mega, and The Monsters – had transformed these characters into a line of vinyl collectibles. In the process, the Monsters franchise, alone, brings in over $419 million in annual sales (as of 2023, according to POP MART’s annual report), and Labubu is the breakout star.
Labubu is more than a top-selling toy. She is the latest case study in how character-based intellectual property (“IP”) can generate scalable, culturally resonant brand equity; a model that not only “mirrors the logic of fashion and luxury branding,” according to luxury analyst Marcel Melzig, but also appears to increasingly challenge it.
The Embrace of Character IP
Distinct from the traditional toy, Labubu operates in The Monsters IP universe like a brand emblem in the luxury segment, signaling identity, taste, and cultural affiliation. Limited-edition blind-box vinyl figures and bag charms with Labubu’s face on them regularly resell for five to ten times their $27.99 retail price. POP MART’s releases often sell out within seconds, while pop-ups in global fashion capitals draw crowds that rival anticipated sneaker drops and limited edition luxury collabs.
The viral character is also a departure from the legacy licensing model that dominates much of entertainment IP, as POP MART retains end-to-end control over the character and corresponding distribution and merchandising. This vertical integration allows the 15-year-old Beijing-based company to operate more like a fashion house than a toy company. Its model is simple but powerful: scarcity is engineered through limited runs, randomized drops, and secret editions that spark urgency and speculative buying; narrative depth is built through an expanding universe that fosters long-term fan attachment; and emotional resonance – rather than functional use – drives demand.
Not alone, Labubu’s rise – along with that of Sanrio’s Hello Kitty and newer icons like Sonny Angel – reflects growing consumer appetite for character IP that merges storytelling, status, and merchandise.
Surging demand for Labubu also highlights the power of Asian celebrities in shaping global taste. After all, Labubu’s leap into global cultural relevance cannot be decoupled from BLACKPINK’s Lisa, who posted photos of her Labubu keychains clipped to luxury handbags back in April 2024. The result was astounding: There was an almost-instantaneous spike in demand and resale prices; Labubu had crossed into a new register of cultural capital.
From Toy to Cultural Commodity
Whether dangling as charms on Birkin bags or appearing in celebrity street style photos, Labubu operates much like any luxury accessory – signaling taste, cultural fluency, and social belonging. In other words, these pieces are not simply toys or collectibles; they serve as culturally coded symbols. “Yes, it’s a doll. You don’t have to like it. But you should try to understand it,” Harry Bainbridge, Head of Strategy at Highsnobiety, recently explained. “It’s also a new symbol of cultural knowledge. Roll your eyes all you want. It’s global fandom. It’s status, exclusivity, even taste. It’s the gold dust brands are desperate for.”
The market is responding accordingly. Labubu is increasingly targeted by counterfeiters and offered up for sale alongside traditional markers of luxury like Van Cleef & Arpels jewelry, Rolex watches, and Hermès bags.
Ultimately, this peculiar little character points to a larger shift underway: What Melzig describes as “IP-first, fan-driven” brand ecosystems, built for global scale and emotional resonance. Labubu suggests that the future of branding no longer resides solely in the usual places (on handbags, sneakers, and jewelry) but extends to characters that transcend language and geography, create deep emotional connections, and scale horizontally without losing their essence.