Have you heard of Labubus? I hadn’t until a Salary Transparent Street Facebook reel appeared in my timeline. Fascinating stuff. The Labubu craze, a global phenomenon driven by Pop Mart’s collectible “blind box” toys, offers valuable lessons for young people seeking their calling and career, particularly in understanding economic behavior, navigating fads, preparing for product development roles, and launching their own businesses. 

• The Psychology of Scarcity and FOMO: Labubus are sold in “blind boxes,” where buyers don’t know which figure they’ll get, creating a variable reward system akin to gambling or social media engagement.
  • Limited releases and rare figures (e.g., 1-in-72 chance for a “secret” Labubu) fuel fear of missing out (FOMO), driving demand and inflating resale prices, with some figures fetching thousands of dollars.
  • This shows how scarcity, real or artificial, can manipulate perceived value, a tactic used in industries from sneakers to NFTs.
• The Lipstick Effect and Emotional Spending: During economic uncertainty, consumers often turn to affordable luxuries for comfort, a phenomenon dubbed the “lipstick effect.”
  • Labubus, priced at $20–$30, fit this mold, offering Gen Z and Millennials a “little treat” for instant gratification when long-term goals like homeownership feel unattainable.
  • Young people should recognize how economic downturns shape spending habits, prioritizing emotional “micro-luxuries” over big-ticket items.
• Social Media as a Demand Amplifier: Labubu’s rise was turbocharged by TikTok (1.3 million #Labubu videos) and celebrity endorsements from stars like Lisa of Blackpink, Rihanna, and Dua Lipa.
  • This underscores the power of social media in creating viral demand and how influencers can turn niche products into global sensations.
  • Understanding herd mentality and social signaling—where consumers buy to express identity or belong to a community—is critical for predicting market trends.
• Fad Lifecycles and Risks: Fads like Labubus often follow a boom-and-bust cycle, as seen with Beanie Babies or Pokémon cards.
  • While Labubus generated $400 million in revenue for Pop Mart in 2024, their long-term staying power is uncertain.

• Designing for Emotional Connection: Labubu’s “ugly-cute” aesthetic and mischievous personality, rooted in Nordic mythology, resonate with consumers seeking individuality over mainstream appeal.

  • Product developers should learn to craft products with unique stories or emotional hooks, as Pop Mart does with characters like Labubu or CryBaby, which tap into “emotional consumption.”
• Mastering Scarcity and Exclusivity: Pop Mart’s use of blind boxes, limited-edition drops, and collaborations (e.g., with Coca-Cola or Vans) creates anticipation and exclusivity.
  • Aspiring product developers should study how scarcity tactics, like sneaker drops or Supreme’s model, drive hype and learn to balance supply to maintain demand without alienating consumers.
• Leveraging Cross-Industry Trends: Labubu’s success as a bag charm aligns with the 2024 bag charm trend, showing how products can piggyback on adjacent fads.

  • Developers should stay attuned to cultural shifts across fashion, tech, and entertainment, using tools like trend reports (e.g., WGSN) or platforms like Pinterest to identify opportunities for product integration.
• Iterating and Diversifying: Pop Mart continuously releases new Labubu collections (e.g., “Big into Energy”) and expands into jewelry or accessories, keeping the brand fresh.

  • Product developers need skills in rapid iteration, using consumer feedback and market data to evolve offerings, which requires proficiency in agile methodologies or design thinking.

• Identifying Niche Markets: Labubu began as a niche collectible but grew into a mainstream hit by appealing to “kidults” (adults with childlike hobbies) and leveraging Gen Z’s focus on self-expression.

  • Entrepreneurs should research underserved markets using tools like Google Trends, Reddit, or X to identify passionate communities ripe for innovative products.
• Building Hype Through Scarcity and Storytelling: Pop Mart’s blind box model and Labubu’s backstory as a mischievous monster created a compelling narrative and scarcity-driven demand.

  • Entrepreneurs can emulate this by launching limited runs or crafting authentic brand stories, using platforms like TikTok Live or Instagram Reels to engage audiences.
• Harnessing Social Media and Influencers: Labubu’s virality owed much to organic celebrity endorsements and TikTok unboxing videos.

  • Entrepreneurs should budget for influencer partnerships, targeting micro-influencers (10K–50K followers) for cost-effective reach, and create shareable content (e.g., unboxing experiences) to spark organic buzz.
• Scaling Globally with Local Adaptation: Pop Mart’s success in North America and Europe came from adapting pricing (e.g., $28 in the US vs. $13.50 in China) and opening experiential stores in cities like Bangkok.

  • Entrepreneurs should study global consumer preferences, using e-commerce platforms like Shopify or Etsy for initial reach, and consider local partnerships for physical expansion.
• Managing Risks of Fads: The Labubu craze may fade like Beanie Babies, as some fans exhibit addiction-like buying behavior, raising concerns about sustainability.
  • Entrepreneurs must diversify revenue streams (e.g., Pop Mart’s jewelry venture) and avoid over-relying on a single product.

  • Financial planning, including cash flow management, is crucial to weather fad-driven volatility.

• Idea Validation: Test product concepts through surveys or MVPs (minimum viable products) on platforms like Kickstarter. Use X or TikTok to gauge interest via polls or teaser content.
• Business Plan: Outline a lean business model, focusing on low-cost production (e.g., dropshipping or 3D printing) and digital marketing. Free templates are available on SCORE.org.
• Funding: Bootstrap initially or seek micro-loans, grants, or crowdfunding. Avoid heavy debt, as fad-based businesses face high risks.
• Legal Setup: Register as an LLC or sole proprietorship, depending on local laws, and secure trademarks for unique designs. Platforms like LegalZoom can streamline this.
• Marketing: Build a brand presence on TikTok, Instagram, and X, using hashtags and trends to gain visibility. Invest in basic SEO for an e-commerce site.
• Mentorship: Join entrepreneurial communities like Startup Grind or find mentors via LinkedIn to navigate challenges.

The above ideas might be unfamiliar to young people so parents, teachers, counselors, and mentors must help them understand the concepts and connect them with others who can help.

• Embrace Experimentation: Like Kasing Lung, who transitioned from children’s books to collectibles, explore multiple creative outlets to discover what resonates.
• Combine Creativity and Commerce: Labubu’s success blends art (design) with business (scarcity marketing). Careers in creative industries (e.g., design, media, marketing) thrive at this intersection.
• Stay Resilient Amid Trends: Fads are fleeting, but skills like trend-spotting, storytelling, and consumer engagement are evergreen. Build a versatile skill set to pivot across industries.

• Seek Community: Labubu’s fan tribes show the power of shared interests. Join professional or hobbyist communities to find purpose and collaboration opportunities.

One learning point for young people is to develop the ability to respond to quickly changing situations and opportunity. That will take significant preparation because they will want to have the intellectual capital from which they can draw to support high-speed decision-making. 

What does that high speed decision-making process look like? That’s a blog for another time.

See below for a book