TL;DR: Labubu's strategy offers key lessons for entrepreneurs on demand creation and brand scaling.
Labubu, a $15 blind-box toy from Pop Mart, became a global sensation by leveraging smart strategies like mystery packaging, limited editions, celebrity endorsements, and IP protection. Its success is a masterclass on scaling demand through scarcity, emotional engagement, and cross-industry opportunities. Founders can apply these lessons by fostering exclusivity, crafting viral marketing campaigns, and exploring media potential for their products.
• Blind-box tactics: Create excitement by introducing mystery purchases.
• Controlled scarcity: Use limited production to spark urgency and value.
• IP security: Protect intellectual property to avoid knockoffs.
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In the strangest entrepreneurial twist of the decade, a $15 creature, not from outer space but from the shelves of Chinese retailer Pop Mart, shattered both toy industry norms and Hollywood’s imagination. The culprit? Labubu. This pint-sized, fuzzy collectible sparked store brawls, sold out globally in minutes, and even attracted the film rights hustle of Sony Pictures, who are betting millions on its cinematic potential. But why did a blind-box toy take the world by storm, and what does it mean for entrepreneurs? Let’s dissect this frenzy from my perspective as a serial entrepreneur who treats startups as strategy-driven experiments.
What Makes Labubu a Business Phenomenon?
Labubu’s journey from an indie toy to a globally recognized brand represents one of the most dramatic value escalations in consumer goods. Created by Hong Kong artist Kasing Lung in 2015, the character initially lived in books but saw meteoric growth once Pop Mart introduced the idea of blind-box packaging in 2019. By 2025, this wasn’t just about toys, it was about status, scarcity, and community. You know you’re onto something when collectors camp overnight to join your tribe or, in extreme cases, break into literal fistfights over your products.
- Blind Box Strategy: Customers don’t know which Labubu they’re getting until it’s opened. This gamifies purchasing and creates a gambling-like thrill, especially for completists looking for rare figures.
- Celebrity Endorsements: Instagram posts from K-pop icon Lisa and Rihanna gave Labubu a halo effect, blending toys into accessories for high fashion.
- Controlled Scarcity: Limited production runs for certain editions turned Labubu into an asset class of its own, with rare figures auctioning for $170,000.
- Media Convergence: By acquiring movie rights, Sony has now positioned Labubu as a transmedia juggernaut instead of a passing trend.
For entrepreneurs, this presents a blueprint on how to exploit emotional engagement, community-driven marketing, and scarcity strategies to scale demand. It isn’t magic, it’s remarkably deliberate.
What Business Lessons Can Founders Extract From Labubu’s Rise?
Labubu is not “just another collectible toy.” Its success is a case study in consumer unpredictability, behavioral economics, and leveraging cultural zeitgeists. Here are the business principles I think every founder can glean from this toy tempest:
- Embrace the Unknown with Blind-Box Formats: Pop Mart structured its offering in a way that mirrors games of chance, which heightened excitement. This model is now creeping into DTC brands, from subscriptions to cosmetics.
- Scarcity Isn’t Greed, It’s Strategy: Artificial scarcity forces customer action. When people see only 100 units of something ever made, they can’t “think it over.” Either buy now or risk missing out.
- Virality Needs Intentional Choreography: Celebrity endorsements amplified Labubu’s desirability almost overnight. But Pop Mart didn’t leave this to chance, they seeded their products in the hands of trendsetters strategically.
- Fence Off Your Intellectual Property Early: Before taking off globally, Pop Mart aggressively secured Labubu’s IP globally. Without this step, copycats (which inevitably came) could have derailed their success early. I can’t stress this enough to founders: protect your intellectual property.
- Cross-Channel Potential Is Key: Toys may launch from shelves, but media owns long-term cultural space. Pop Mart locked this downstream revenue by selling film rights to Sony and starting collaborations with global brands like One Piece. Founders need to ask themselves if their primary product could evolve into a category or media sensation someday.
These are not overnight tactics, they’re methodical actions sequenced for maximum yield. Whether you’re shipping physical products or SaaS, the mechanics remain similar, especially for capturing customer obsession at scale.
How Can Founders Mimic This Success Without Brawls?
Not every entrepreneur has the luxury of wrangling megastar endorsements or commanding auction-room frenzy, but there are actionable steps grounded in Labubu’s playbook:
- Engineer Mystery Into Your Offering: Could you create a blind-box style product in your domain? For instance, cosmetics brands have begun shipping “mystery boxes” to drive engagement.
- Create Demand Through Exclusivity: Use limited-time or invite-only launches to ignite FOMO. Even digital products can benefit, think how Clubhouse grew by leveraging exclusivity.
- Collaborate With Micro-Influencers: While megastars like Rihanna might stay out of reach, micro-influencers who resonate authentically with your niche audience can turn your product viral locally.
- Repurpose for Media: Whether it’s educational guides that double as interactive content or software that integrates into gamified workflows, rethink how your product exists beyond its default form.
For example, in my current venture, Fe/male Switch, we embed gamified modules inside entrepreneurial education. This isn’t so different from Labubu transitioning from a toy to “entertainment IP.” Mastering multiple lanes matters because it builds resilience into your business streams.
What Are the Risks of Following the Labubu Model?
While Labubu’s story glimmers with cultural success, it’s not all gold. There are notable risks, especially for digital-first entrepreneurs looking to replicate similar strategies:
- Over-hyping Can Backfire: If scarcity feels disingenuous or manipulated (without real value), it leads to backlash that’s hard for small brands to recover from.
- Knockoffs Are Your Biggest Threat: Whether you sell physical goods or software, counterfeit innovators will chase profitability as soon as demand scales. Your IP framework needs to be bulletproof.
- Operational Chaos: Physical goods, especially those in limited runs, require supply chain resilience. Pop Mart runs a tight ship; most startups struggle to fulfill skyrocketing demand.
- Celebrity Endorsement Fatigue: Consumers are savvy. If your influencer partnerships don’t feel organic, they can hurt rather than help.
Entrepreneurs should prepare to weather these storms with deliberate planning. The rewards are amazing, but shortcuts in execution erode trust, and trust is expensive to rebuild.
Final Thoughts for Entrepreneurs
Labubu wasn’t random. It was a perfectly timed mix of scarcity, cultural cachet, and product portability across multiple verticals. For founders, the real value of this case lies in its roadmap: balance hype with substance, expand product meaning into new verticals, and deploy emotional engagement strategies that turn “customers” into fans.
Whether you’re building a blind-box toy, SaaS, or media-driven platform, ask yourself this: Does my product have a constellation, or is it just orbiting one market? Think multilayered, think in phases, because when it hits, you want to be scaling up, not scrambling.
FAQ on Labubu's Entrepreneurial Success and Business Lessons
What is Labubu, and how did it start?
Labubu is a collectible character created by Kasing Lung. Initially featured in books, it became a global phenomenon after Pop Mart’s blind-box strategy launched it in 2019. The toy’s scarcity and nostalgic appeal drove massive demand. Explore entrepreneurial strategies for collectibles.
Why is the blind-box strategy so effective?
Blind-box sales inject mystery into purchasing, gamifying the shopping experience. This format builds excitement and emotional attachment among buyers, especially completist collectors. It’s a strategic tool many industries are adopting. Dive into product psychology with DTC brands.
How did Labubu integrate celebrity endorsements?
Labubu gained mainstream visibility through deliberate partnerships with influencers like Lisa (BLACKPINK) and Rihanna. These endorsements positioned the toy as a trendy, luxury accessory. Successful influencer adoption boosts cultural relevance for niche products. Learn how trendsetters impact product virality.
What role does scarcity play in driving demand?
Pop Mart created value by limiting production runs for rare Labubu editions. Controlled scarcity accelerates consumer choices, creating FOMO (Fear of Missing Out). Smart scarcity isn’t greed, it’s marketing. Explore impactful marketing scarcity strategies.
How can intellectual property protection save startups?
Pop Mart aggressively secured Labubu’s global IP, preventing copycats from undermining its success. Entrepreneurs must prioritize safeguarding unique products early. Discover IP frameworks for startups.
Should founders consider cross-channel strategies like Sony did?
Sony positioned Labubu beyond a toy, acquiring movie rights to grow it into a transmedia franchise. Founders should assess whether their products have broader category potential. Learn about scaling beyond product categories.
Can entrepreneurs replicate Labubu’s success without celebrity backing?
Yes. Instead of megastars, partner with micro-influencers trusted by niche communities. Engineer mystery into offerings with blind-box variations tailored for your audience. Check practical methods for influencer collaborations.
What risks can arise from following Labubu’s model?
Over-hyping and artificial scarcity can backfire, damaging startup trust. Additionally, counterfeit products and operational challenges demand proactive defenses. Develop operational resilience for lasting impact.
How can startups embed emotional engagement like Labubu?
Labubu excelled by creating nostalgia-driven connections with its fans. Focus on crafting brand narratives and gamified experiences that resonate deeply. Explore gamification in startup education.
What sectors or industries can adopt Labubu’s playbook?
Beyond toys, industries like cosmetics, subscription-based services, and niche fashion brands can use blind-box strategies, limited editions, and robust media tie-ins to replicate success. Unlock insights to scale your product strategy.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.