Beyond the blind box: The emotional economics of Labubu

Erhan Kilincarslan - Reader in Accounting and Finance, University of Huddersfield

Jiafan Li - Lecturer in Accounting, University of Huddersfield

The Labubu Phenomenon

Founded in 2010 by Wang Ning, toy company Pop Mart has grown into a global force through its intellectual property (IP) portfolio, including The Monster (featuring Labubu), Molly, SkullPanda and Crybaby. In 2024, Pop Mart’s revenue soared to RMB13.04 billion ($1.82 billion), up 106.9% year-on-year. With a market value over $38 billion, Pop Mart now exceeds the combined worth of the U.S. toy giants Mattel and Hasbro. 

At the heart of this success is the “blind box” model: consumers purchase sealed boxes containing an unidentified character (priced around $9-10). Each series typically features six regular characters and one “secret” character, with only partial hints printed on the packaging to fuel speculation and collectability. This gamified uncertainty encourages repeat purchases as collectors hunt for the rarest pieces. Many turned to secondary markets, where exclusive editions are traded at substantial premiums. The frenzy is real: in May, a human-sized limited-edition Labubu sold at auction in Beijing for $150,324, turning what was once a toy into a cultural asset.

Why Labubu Works: 3 Intersecting Forces

1. Culturally neutral, emotionally specific

Labubu’s success is partly rooted in its culturally neutral design, intentionally crafted to avoid strong associations with any particular nation, language, belief system or custom. This “borderless” aesthetic enables instant recognition and broad appeal across global markets. Artist Kasing Lung, born in Hong Kong and raised in the Netherlands, has been collaborating with Pop Mart since 2019 as the creator of The Monster series. His design for Labubu draws inspiration from Nordic folklore, rather than a single dominant or localised cultural narrative – a deliberate move that resonates deeply with today’s young global consumers. 

Unlike Hello Kitty, the most iconic figure of Japanese’s kawaii (cuteness) culture, Labubu embodies a different sensibility:  the “ugly-cute”, a mix of  quirky, playful, expressive, and slightly rebellious traits. The aesthetic offers a refreshing alternative to conventional notions of cuteness, aligning with the values of Gen Z and Alpha, who often seek to express “individuality” through possessions that also carry social recognition. For these younger consumers, Labubu’s offbeat charm serves as both a personal statement and a culturally intelligible symbol within their peer networks. 

2. Emotional economy: comfort, community, and thrill

Young consumers are increasingly drawn to brands that offer memorable experiences and shareable stories, signalling the rise of the “emotional economy”. This shift moves beyond the classic “lipstick effect”, the tendency to seek small luxuries during downturns, toward a deeper valuation of what marketers call the 4E model: Experience, Exclusivity, Engagement, and Emotion. Labubu fits this model perfectly, offering Gen Y and Z a sense of emotional support, from childhood nostalgia and comforting companionship to temporary escape from adult life’s pressures. 

The blind box model adds to a strong community dimension, creating opportunities for fans to connect, trade and share their finds, which is especially meaningful in a digital world where many feel disconnected. Just as vital is Pop Mart’s cultivation of authenticity, a key driver of Labubu’s success. Through its “IP incubation and operation” strategy, Pop Mart partners with emerging artists and designers to co-create culturally resonant characters that bring joy to diverse global fanbases. For example, the IP Crybaby embodies emotional openness through the concept “Healing Through Tears” and its core message: “Everybody Cries Sometimes!”, promoting both emotional release and resilience.

Beyond emotional comfort, the blind box delivers the “unboxing thrill”, a gamified experience that mimics gambling in its uncertainty, but at an affordable price in a sealed box looking for happiness and excitement. This thrill is amplified by FOMO (fear of missing out), as countless unboxing videos on TikTok, Instagram, and YouTube highlight rare finds and fuel collectors’ desire. Gen Y, Z and even Alpha fans queue for hours and travel long distances looking for rare or limited editions, seeing the effort as worthwhile for the happiness it sparks. 

The model also taps into a deep human instinct to collect. In some cultures, like Thailand, collecting figurines, including religious amulets, has long cultural roots. Pop Mart amplifies this instinct through series where a secret edition may appear only once in every 144 boxes, encouraging repeated purchases. However, the addictive nature has drawn scrutiny: in China, regulators have banned blind box sales to children under eight. This policy signals broader ethical concerns and may prompt global policymakers to consider similar oversight.

3. Social media virality and influencer power

Social media, especially TikTok, now dominates trendsetting and cultural influence among younger generations. As true digital natives, Gen Z increasingly treat social platforms as search engines, turning to short-form video content to check reviews, product insights, and recommendations before making purchases. In fact, 70% of Gen Z discover new brands via social video content each month, and 53% prefer introductions from social influencers over traditional ads. 

This behaviour plays a key role in the rise of Labubu’s popularity. Viral unboxing videos, aesthetic showcases, and playful content featuring the figure, often shared by influencers and celebrities like Rihanna and Kim Kardashian, spark initial curiosity that quickly snowballs into full-blown fandom. Once engaged, new collectors dive deeper sharing their hunts, displaying rare finds, and connecting with others through online trading communities. In this way, social media doesn’t just only drive sales, it builds a lasting emotional ecosystem around Pop Mart’s characters. 

The Road Ahead

Pop Mart’s future rests on its ability to consistently replicate the winning formula: cultural neutral design, deep emotional resonance, and social media virality – not just for Labubu, but across its evolving portfolio of IPs. Yet sustaining the “Labubu feeling” in today’s attention-scarce, emotionally saturated economy will require more than repetition. It demands ongoing innovation, authenticity and a deep understanding of how digital-native consumers seek connection, meaning and identity through brands. 

More broadly, Labubu’s rise signals a shift in global consumer culture, where emotional value, aesthetic distinctiveness, and community-driven narratives are overtaking traditional product utility. For brands and artists, the Labubu phenomenon offers both inspiration and a cautionary tale: emotional economies can flourish but also call for ethical design and sustainable engagement.

Meanwhile, the phenomenon raises important questions. What are the broader consequences of overproducing environmentally unsustainable goods that primarily serve emotional fulfilment? For policymakers, the popularity of blind-box mechanism, with its gambling-like appeal, particular among young consumers, needs closer scrutiny. As the emotional economy continues to expand, it will be crucial to examine the fine line between emotional satisfaction and over-dependence.