POPMART.
Why are Labubus, those ugly-cute doll-like characters sold in blind boxes, so loved that they transcend any dreams marketers have of success?
The simple answer is virality and scarcity, according to Kane Koh, marketing lecturer at RMIT University.
"This is evident in the abundance of user-generated content on platforms like Instagram and TikTok,” Dr Koh told AdNews.
“For example, there are viral TikTok’s of unboxed Labubus being observed through a baggage scanner.
“Combined with a 'chronically online' demographic within Australia’s multicultural society, this creates a market highly receptive to such fast-moving trends.”
“This is also amplified by the blind box format, where each purchase offers a random item from a specific collection.
“This approach adds hedonic value with a touch of gambling and creates social value by encouraging peer trading and user-generated content on social media, often in hopes of completing a set or acquiring a rare variant.”
Pop Mart, the company behind Labubus,is launching a new store at Melbourne Walk on Saturday, July 19.
The Chinese toy company currently owns more than 550 stores in 30+ countries and regions, more than 2,500 Roboshops and e-commerce reaching consumers in more than 90 countries.
Despite its global reach and popularity, the rareness of its popular trinkets has created buzz, interest and discourse across the market.
The company has reported total sales, primarily domestic, of 4.49 billion yuan ($624.6 million) in 2021.
In 2024, overseas sales alone surpassed that to hit 5.1 billion yuan, up 373% from a year ago, while mainland China sales climbed to 7.97 billion yuan, according to CNBC.
Overall revenue (unaudited) for the first quarter of 2025 recorded a period-on-period increase of 165%-170% as compared to the first quarter of 2024.
The CEO of Pop Mart, Wang Ning, is recognised as one of the youngest billionaires in China, with a net worth of $22.7 billion, according to First Post.
Pop Mart Australia appointed independent advertising agency Rasic and Partners to engage its brand and marketing awareness.
When it comes to audience engagement in Australia, co-founder Dejan Rasic said the target audience is vast.
“There is strong engagement with young people who are tuned in to pop culture and big on self-expression,” Rasic said.
“Naturally, it resonates with Gen Z and Millennials, but it has also grown in popularity with older audiences.”
Dr Koh said that user-generated content on social media, including TikTok, reveals the audience as mainly Gen Z and millennials.
“When we think of toys, we typically associate them with children as the primary target demographic,” Dr Koh said.
“While that may be true in general, Pop Mart’s actual audience appears to be Gen Z and millennials, as evidenced by the user-generated content online reflecting their usage and commentary.
“This is further apparent in the attendees of Pop Mart's store openings across Australia.”
The brand's most popular toy, The Monster’s ‘Labubu’ doll, is inspired by Nordic mythology, designed by Kasing Lung, an artist born in Hong Kong, based in Belgium and sold globally.
Despite the cultural phenomenon of the doll, the product is considered a rarity. It is regularly sold out online and across Pop Mart stores with unpredicted restock periods.
“Labubu is to Gen Z and Y as what Furby was to Gen X. Different eras, but the same type of engagement: induced scarcity,” Dr Koh said.
“Pop Mart excels at generating demand by cultivating the perception that its products become difficult to find over time.
“This perception eventually became reality as a cult following of dedicated hobbyists and opportunistic scalpers buy out certain product lines, such as those from the Monster series.”
NSW Fair Trade recently warned Australian shoppers on social media of fake Labubu products, unanimously known as Lafufu.
Scammers or scalpers are becoming increasingly common in Australian brands or through e-commerce.
“As demand surges due to the artificial scarcity created by blind boxes and limited-edition models, the brand becomes vulnerable to scalping, where opportunistic buyers purchase in bulk to resell at inflated prices,” Dr Koh said.
“It’ll be interesting to observe how Pop Mart addresses this potential concern, to avoid incidents like those involving Pokémon products, where entire shelves were cleared out by scalpers, disrupting genuine consumer access and brand equity.”
Pop Mart are launching a new store in the Sydney CBD at the end of the year, which Dr Koh said may be the key to brand growth.
“Pop Mart has already established both a physical and digital retail presence, employing a mix of direct and indirect distribution across high-traffic areas in Melbourne, Sydney and Brisbane CBDs,” Dr Koh said.
“A potential growth avenue lies in leveraging pop-up events to launch limited-edition products or seasonal product line extensions, enhancing exclusivity and consumer buzz.”
The Pop Mart store in Melbourne Walk will be themed around the Skullpanda brand, with brand and marketing awareness via media agency Rasic & Partners.
“This is very much the start of a bigger Australian play,” Rasic said.
“We are working on new store launches, more immersive experiences, content collaborations and fan-led campaigns.
“It is an exciting time to be involved with the brand.”
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