Authored by Akanksha Kaul (Strategy Consultant), and Utpal Kaushik (Management Consultant) at Avalon Consulting.
The Evolution of Hype
It’s been more than 4 centuries since the first recorded speculative mania in human history, yet the anatomy of a hype remains the same. In 17th-century Holland, during the infamous Tulip Mania, the Dutch were betting their life savings for Tulips. These exotic flowers were fabled to bring fortune. At times a single bulb of a rare variety could be priced equal to a posh estate by the canal, until the bubble burst. Prices crashed, many were left with expensive, albeit beautiful flowers. Hype is not a recent phenomenon; it’s older than commerce itself. Back then it was flowers, today it’s a wide-eyed grinning monster toy. The Labubu craze is sweeping the globe, a hot traded commodity for people of all ages and an inspiration for many conspiracy theories, only adding to its popularity.
What’s peculiar about hypes isn’t the objects themselves, but the psychology behind it. Hype is fundamentally a form of widespread psychological manipulation. It takes advantage of basic human biases, such as our inclination to follow the herd, our need for social acceptance, and the fear of missing out. The most successful hypes manufacture emotions, create artificial scarcity that triggers our loss aversion, and build communities where being left out can feel isolating.
What has evolved though is the sophistication and orchestration of these hypes. In the past, tulip mania spread through actual networks of traders and speculators, staying within Dutch borders. Modern technology has enabled hypes to become far more widespread and globalized. Within hours, a single YouTube Shorts video or well-placed Instagram story can reach millions of people, turning local trends into worldwide movements.
This begs the question – does creating global-scale mass hype require just viral content or does it demand understanding the intricate mechanics of modern attention economies?
The Anatomy of Labubu’s Explosive Growth
Let’s examine the most successful recent instance of planned worldwide hype: Labubu, the mysterious collectible that enthralled millions of people and brought in hundreds of millions of dollars, exposing the advanced machinery that powers modern hypes.
Labubu’s success wasn’t accidental—it was perfectly orchestrated. The genius began with transforming purchasing into an experience. The blind box format turned buying into a mini lottery, tapping into the same mechanisms that make slot machines addictive, encouraging repeat purchases as collectors chased rare designs they couldn’t buy directly.
The brand understood that modern consumers crave belonging as much as products. Labubu created community through shared collecting experiences—unboxing videos became social currency, building communities, and creating a movement. Owning a Labubu meant earning social prestige.
Strategic celebrity endorsements amplified this exponentially. When Lisa, Dua Lipa, and Rihanna were spotted with Labubu accessories, it elevated the toy from collectible to fashion statement. Pop Mart maintained tight distribution control and introduced limited editions that routinely sold out, creating high-demand, low-supply environments.
Their scarcity model paid off spectacularly. A six-foot-tall life-sized Mint Green Labubu, sold for approximately $150,000, at an auction in Beijing, corroborating Labubu’s status as a lasting collectible with real value. This speculative secondary market creates a positively reinforcing feedback loop where high auction prices drive consumer interest, increasing demand for primary releases.
Why Timing Made All the Difference
However, this is not a straightforward playbook that you can repeat if you follow all the right steps. There is no guarantee that a hype will succeed because it depends on mass sentiment. Humans can be considered rational on an individual level, but in a collective setting, they can be rather capricious. This is why, for a successful hype, context and timing become very important.
In 2013, when Google Glass landed, only tech elites had access to it, but the world wasn’t ready for wearable AR technology. So, even though the product itself was groundbreaking and Google had followed all the typical steps out of a hype playbook, it produced confusion and fear rather than excitement.
Facebook’s Meta rebrand in 2021 demonstrates another timing failure. Despite massive metaverse investment, the concept was too abstract for mass audiences and came at a bad timing, when Facebook was losing trust in face of the public amidst heavy regulatory scrutiny.
So, what made the timing right for Pop Mart?
Labubu emerged at the perfect intersection of economic, cultural and technological forces. Economic uncertainty had younger consumers embracing “little treat” culture—small, affordable luxuries providing immediate gratification when larger goals felt distant. The short-form video boom created ideal conditions for viral spread. The algorithmic revolution was crucial—TikTok, Instagram Reels, and YouTube Shorts began rewarding engagement over follower count, meaning compelling unboxing videos could reach millions regardless of follower count.
Demographically, timing was just right. The first wave of Gen Z had entered the workforce with disposable income and digital influence, while Millennials are now in their prime earning years. Both generations, native to social media and comfortable with online communities, were perfectly positioned to embrace the Labubu phenomenon. When consumers saw collectible toys fetching six-figure sums, they viewed $20 blind-box purchases as not just fun, but potentially lucrative and culturally prestigious.
The Incredibly Potent Micro Hypes
Sophisticated brands do not use Hype in a “cash and dash” way, but strategically integrate hype elements into long-term brand building. These companies harness the psychological drivers that create moments of “micro hype” while avoiding the habituation trap that destroys it. They create anticipated moments of excitement that strengthen rather than exhaust their brand equity.
This strategy turns hype into a long-term competitive advantage rather than a desperate marketing gimmick. These brands create real anticipation supported by reliable value delivery rather than creating artificial urgency. The objective is not to create viral moments that burn bright and fade.
Several leading brands exemplify this mastery. Apple creates predictable innovation cycles that generate massive excitement without artificial scarcity. Their annual iPhone releases create anticipated excitement by consistently delivering meaningful improvements, while keynote events become shared cultural moments that transcend the products themselves.
Nike revolutionized sneaker releases through fair gamification—their SNKRS app lottery system transforms purchasing into achievement-based gaming, while storytelling connects each release to athlete narratives. Starbucks perfected “little treat” psychology sustainably through seasonal emotional anchoring like the Pumpkin Spice Latte, creating nostalgia and tradition rather than urgency.
Even anti-hype brands like Patagonia demonstrate sustainable demand through value-driven scarcity—products are limited because they’re made sustainably, not artificially.
Indian brands have also masterfully applied these principles with impressive financial results. Cred has transformed the mundane act of paying credit card bills into a gamified experience with rewards, exclusive access, and a premium community feel, driving 66% revenue growth to ₹2,473 crore in FY24 and achieving a $3.7 billion valuation. Instead of creating artificial scarcity around products, they’ve built exclusivity around membership itself.
The Future of Strategic Hype
The relationship between hype marketing burnout and habituation reveals why hypes always inevitably die down. When consumers are repeatedly exposed to superlative claims and manufactured excitement, their psychological response systems adapt by filtering out these signals as noise.
This pattern has been observed repeatedly, starting with Beanie Babies, which at one point had $1.4 billion in annual sales, but lost over 90% of their value in a matter of years, and continuing with NFTs, whose trading volume fell from $4.9 billion in January 2022 to less than $500 million by the end of the year.
Whichever route you choose, it’s critical to realize that consumer habituation to hype is a sign of market maturity rather than an issue that needs to be resolved. It indicates that your audience isbecoming sophisticated and demanding better communication quality. The most effective hype isn’t created; rather, it’s earned via strategic timing, constant value delivery, and a thorough comprehension of cultural moments. Brands that achieve this balance in our hyperconnected world will produce more than just viral moments, but lasting movements. In a world where everyone can manufacture attention, those who sustain it will lead.