Introduction:
When designer toys meet the “ugly-cute” trend, a LABUBU toy priced at just 99 CNY (approx. 13.60 USD) can skyrocket in value on the secondhand market by several multiples. The frenzied buying scenes are jaw-dropping. It has not only shaken up the entire designer toy market but has also helped Pop Mart build a massive toy empire. We deep dive into the marketing secrets behind this “monster,” and how it became a new obsession for young consumers—unleashing a wealth storm of plastic collectibles.
Blind Boxes: The Mysterious Box That Keeps Young People Hooked
Pop Mart’s rise is inseparable from the unique blind box sales model. A blind box is a sealed package where buyers cannot see the toy inside—it’s all based on luck, which stimulates the desire to buy again and again. Data shows that about 70% of designer toy consumers will make at least three or more purchases trying to get their desired figure.
You may wonder—why are people cutting back on daily expenses, yet going wild over a blind box that only costs around 50 CNY (approx. 6.90 USD)? The reason lies in the psychology of collectors and the thrill of surprise. It’s like saying, “Just one more and I’ll stop”—a promise rarely kept.
Pop Mart’s blind box sales have grown at an astonishing rate each year. From 2015 to 2019, annual sales grew by an average of 2.4 times. Even during the pandemic, blind box sales still surpassed ten million units. Pop Mart’s vending machines in malls and subway stations became roaming “money trees.” In 2024 alone, its robot stores generated nearly 700 million CNY (approx. 96 million USD) in revenue.
In fact, Pop Mart didn’t start as a designer toy brand. In 2010, founder Wang Ning opened a Pop Mart retail store in Beijing, selling stationery, cosmetics, and miscellaneous items—none of which had a core competitive advantage. The business model of reselling agent goods with a price margin didn’t do well.
The turning point came in 2015, when Pop Mart became the agent for the Japanese Sonny Angel blind box series—8cm tall figurines with hundreds of designs, randomly drawn. The product went viral, with monthly sales surpassing 60,000 units.
Inspired by this, Pop Mart cleared out its miscellaneous stock and pivoted to focus on designer toys, deciding to develop its own brands and IP. In 2016, it exclusively licensed the “Molly” IP, created by Hong Kong designer Kenny Wong. This big-eyed, adorable girl quickly became a phenomenal hit, contributing 89% of company revenue in 2017.
Even more crucially, in 2019, Pop Mart acquired global intellectual property rights to Molly, fully turning it into their own “baby” and golden goose.
IP Is the Hard Currency—Blind Boxes Are Just the Tool
Pop Mart understands that the blind box is merely a method to attract consumers; what truly accumulates commercial value is the intellectual property (IP).
From 2017 to 2019, the company’s gross margin on IP climbed to 65%, and net profit surged from millions to hundreds of millions. After going public in 2020, Pop Mart invested even more in incubating and acquiring IPs. In 2024, revenue from artist IPs alone exceeded 11.1 billion CNY (approx. 1.52 billion USD).
Beyond Molly, Pop Mart also built new IPs like LABUBU and “The Monsters.” LABUBU in particular saw its third-generation version, priced at 99 CNY, sell out immediately upon launch in 2024. Its hidden variant reached 2,799 CNY (approx. 385 USD) on the secondhand market, and some fans spent thousands trying to draw a figure with only a 1-in-144 chance.
Pop Mart has turned IP into a global cultural symbol. In Asia, its products represent “cuteness.” In Western markets, they transform into punk or rebellious styles. By aligning with local culture, the company precisely “feeds” regional tastes and creates a universal language for young people.
LABUBU: The Darling of Designer Toys with Master-Level Marketing
LABUBU is one of Pop Mart’s star IPs. With its unique design and rich backstory, it quickly captured the hearts of young people. The little monster figure is sometimes cute, sometimes rebellious—hugely popular among trendsetters and collectors.
But LABUBU’s breakout success is not just about looks—it’s about how cleverly it’s marketed. Pop Mart has designed a multi-layered marketing strategy for LABUBU:
- Limited Releases to Create Scarcity
LABUBU products are often launched in limited quantities. Some hidden variants have odds as low as 1 in 144, creating an elusive “rare find” appeal that fuels repeated purchases and intense collector enthusiasm. - Cross-Industry Collaborations to Enrich Content
Pop Mart frequently collaborates with fashion, art, and entertainment industries to launch co-branded LABUBU figures. Whether working with famous designers or streetwear labels, LABUBU becomes more than a toy—it becomes a fashion statement. - Community Engagement to Build Fan Belonging
Pop Mart values community-building, organizing offline exhibitions, pop-up shops, and fan meetups to foster closeness between the brand and its users, enhancing loyalty.
They also maintain active presence on platforms like Weibo, Douyin (TikTok China), and Xiaohongshu (RED), posting behind-the-scenes content and encouraging fan-made art, fostering interaction and boosting participation.
- Multi-Channel Retail to Reach Wider Audiences
In addition to physical stores, Pop Mart has established online malls and blind box vending machines to accommodate diverse shopping habits, enabling fans to “impulse buy” anytime. - Storytelling Content to Deepen Brand Impressions
Every LABUBU figure has its own backstory. Pop Mart uses comics, animations, and other storytelling formats to build emotional connections and strengthen brand loyalty.
This type of marketing turns LABUBU into more than a toy—it becomes a carrier of youth culture and emotion. Fans are willing to invest time and money, and even participate in content creation and promotion, forming a virtuous cycle.
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.