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I. The Rise of Labubu’s Popularity
Labubu, the “ugly-cute” doll created by Hong Kong illustrator Kasing Lung and promoted by Pop Mart, has taken the world by storm, becoming a phenomenal IP in the designer toy industry. In 2024, its THE MONSTERS series generated 30.4 billion yuan in revenue for Pop Mart, a year-on-year increase of 726.6%, with the company’s overall revenue in Q1 2025 growing by 165%-170%. Labubu’s explosive popularity is no accident, driven by the following key factors:
1. Capturing Emotional Value
Labubu’s distinctive design—pointy ears, nine jagged teeth, a fuzzy body, and a mischievous gaze—breaks away from the traditional “sweet and cute” doll stereotype, resonating with Gen Z’s preference for “anti-standardized” aesthetics. Kasing Lung once stated that Labubu represents “the hidden side of young people’s inner selves” (South China Morning Post, 2024), making its quirky, non-conformist design a vehicle for self-expression and stress relief. In today’s “loneliness economy,” Labubu’s blind box mechanism, which delivers unboxing surprises, collection achievements, and social media sharing satisfaction, has become an “emotional vessel” for young consumers.
2. Social Media and Celebrity Endorsement Boost
Social media’s viral spread has provided fertile ground for Labubu’s global reach. The #LabubuHaul hashtag on TikTok has garnered over 1 billion views (TikTok Analytics, 2025), with user-generated unboxing and customization videos amplifying brand influence. Celebrity endorsements have further fueled the trend, with figures like BLACKPINK’s Lisa, the Thai princess, and Rihanna spotted hanging Labubu on luxury bags from Hermès, LV, and more (Vogue, 2024), positioning it as a “luxury companion” and “social currency.” This “luxury mix-and-match” trend not only elevates Labubu’s cultural capital but also establishes it as a cross-cultural fashion symbol.
3. Scarcity and Secondary Market Speculation
Labubu’s limited-edition strategy creates scarcity, mirroring the “hunger marketing” tactics of luxury brands. Originally priced at 99 yuan, blind boxes can fetch up to 23 times their value in the secondary market, with rare hidden editions reaching thousands of dollars (Sohu News, 2024). In 2024, a life-sized Labubu doll was auctioned for 1.08 million yuan, earning the nickname “plastic Moutai” (China News, 2024). This high premium attracts investors, with collectors like “Fish Belly Idealist” achieving 34-fold returns through Labubu collections (Weibo, 2024), further driving market fervor.
4. Globalization and Localization Strategies
Pop Mart’s global expansion has provided robust support for Labubu’s international success. In 2024, its overseas revenue surged by over 10 times, with North America seeing 895%-900% growth and Europe 600%-605% (Pop Mart Investor Relations, 2024). Labubu integrates into diverse markets through localized designs (e.g., Thailand’s Loy Krathong limited edition and Paris Louvre art collaborations) and elevates its “accessible luxury” status through partnerships with brands like Gucci and Nike (WWD, 2024). Efficient supply chain optimization, such as the “three continents, five warehouses” model, ensures global demand fulfillment (Pop Mart Supply Chain Report, 2024).
II. The Rise of Handbag Pendants
Over the past two years, handbag pendants have emerged as a hot item in the fashion world. From Fendi’s Bag Bugs to Dior’s personalized charms and Labubu’s cross-category pendants, these small accessories adorn luxury bags from Hermès, Chanel, and others, serving as a fashion code for individuality. The rise of handbag pendants is characterized by the following:
1. Personalization and Identity Expression
Handbag pendants offer a low-cost way to personalize. Compared to luxury bags costing tens of thousands, a pendant priced at a few hundred yuan provides an accessible way to stand out. For instance, Thailand’s Princess Ubolratana adorned her LV bag with a Labubu (Vogue Thailand, 2024), and Filipino influencer Bryan Boy showcased multiple Labubus on his Hermès bag (Instagram, 2024), highlighting unique taste.
2. Luxury Mix-and-Match Trend
Handbag pendants disrupt the “aloof” image of traditional luxury through playful mix-and-match aesthetics. Labubu’s “ugly-cute” style contrasts with Hermès’ elegance, appealing to young consumers and elites alike as a way to “break elite barriers” in fashion (Fashionista, 2024).
3. Social Media Display Needs
Handbag pendants’ compact, eye-catching nature makes them ideal for social media. On Xiaohongshu, the #Labubu topic has over 1.55 billion views, with derivative topics like “doll clothes” exceeding 50 million (Xiaohongshu Analytics, 2025). Consumers showcase pendant pairings to fulfill “flaunting wealth” and group identity needs.
III. Commonalities Between Labubu and Handbag Pendants
Labubu’s meteoric rise and the handbag pendant trend share several key similarities:
1. Driven by Emotional Consumption
Both cater to Gen Z’s emotional needs. Labubu’s blind box mechanism and “ugly-cute” aesthetic satisfy desires for personalization and stress relief, while handbag pendants offer instant emotional gratification through affordable customization. In an “atomized” society, consumers increasingly seek emotional connection through small, frequent purchases.
2. Social Currency Attributes
Both Labubu and handbag pendants serve as “social currency,” facilitating group identity and self-expression. Collectors and pendant enthusiasts build cultural symbols and community belonging through social media sharing.
3. Scarcity and Collectible Value
Both rely on limited releases and secondary market premiums to create scarcity. Labubu’s hidden editions and luxury pendants’ limited runs command high resale values, attracting investors and collectors with financial attributes akin to luxury goods.
4. Cross-Industry and Mix-and-Match Fashion Logic
Both break cultural barriers through collaborations and mix-and-match trends. Labubu’s partnerships with Vans and Gucci, and its role as an Hermès bag accessory, mirror the “trend + luxury” fusion of handbag pendants (Elle, 2024).
IV. Underlying Economic Phenomena
The Labubu and handbag pendant trends reflect several economic phenomena:
1. The Rise of Emotional Economy
In the post-pandemic era, consumers prioritize “emotional value” over “cost-effectiveness.” Labubu and handbag pendants, by fulfilling emotional needs (e.g., stress relief, self-expression), have become symbols of “spiritual consumption.” Economist Gao Shanwen’s “scar effect” suggests that post-pandemic consumers are less risk-tolerant, favoring low-cost, high-satisfaction emotional purchases (China Economic Review, 2023).
Case Study: Low-Cost, High-Satisfaction Emotional Consumption
Consumers lean toward low-cost purchases for high emotional returns. For example, young people may hesitate to spend tens of thousands on a new Hermès Birkin but are willing to invest a few hundred yuan in a Labubu pendant or Fendi Bag Bugs to adorn existing bags. This not only lowers the consumption barrier but also enables self-expression through personalized pairings. For instance, Shanghai office worker Xiao Li shared on Xiaohongshu how she used a 300-yuan Labubu pendant and DIY “doll clothes” to transform an ordinary Coach bag into a unique fashion piece, earning thousands of likes and fulfilling social validation needs (Xiaohongshu, 2024). Similarly, Dior’s “DIOR CHARMS” series (priced at 2,000-5,000 yuan) is popular among middle-class consumers who decorate existing bags, avoiding the high cost of new purchases while showcasing taste and trendiness (Dior Official, 2024). This “micro-transformation” consumption model is particularly popular among Gen Z, who seek “instant gratification” through small investments.
2. The Globalization of IP Economy
Labubu’s success marks China’s IP transition from “manufacturing dividends” to “cultural premiums.” Pop Mart’s global strategy and localized operations offer a replicable model for Chinese designer toy brands, proving the global competitiveness of “Chinese design” (Forbes, 2024). The handbag pendant trend highlights the potential of IP derivatives, spawning ancillary industries like “doll clothes.”
3. Scarcity-Driven Speculative Market
The secondary market speculation for Labubu and handbag pendants reflects a scarcity-driven economy. Like luxury goods’ limited-release strategies, Labubu maintains high premiums by controlling supply, attracting investors. However, this also brings risks like price distortions and counterfeiting, warranting caution against market bubbles (Bloomberg, 2024).
4. Social Media-Driven Consumer Culture
Social media’s amplification mechanisms have boosted the Labubu and handbag pendant craze. User-generated content (UGC) and celebrity effects create a “dual-driver” model, propelling subcultures into mainstream appeal. This reflects the intersection of “sharing economy” and “attention economy” in modern consumer culture (Harvard Business Review, 2024).
V. Risks and Outlook
Despite the strong momentum of the Labubu and handbag pendant trends, challenges remain. Global shortages, purchasing conflicts, and rampant counterfeiting erode brand value, requiring Pop Mart to strengthen supply chain management and intellectual property protection (Reuters, 2024). Additionally, speculative secondary market activities may lead to bubble risks, necessitating caution against irrational consumption in the long term (Bloomberg, 2024).
Looking ahead, Labubu’s success provides a blueprint for Chinese IPs to go global, with more local brands likely to lead trends through cultural resonance and global operations. Handbag pendants, as an extension of accessible luxury consumption, are poised to thrive under the drive for personalization and social needs. Both phenomena highlight the immense potential of emotional and IP-driven economies, but sustainable growth depends on balancing brand authenticity with market regulation.
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