He spent $50,000 on Labubus but now the craze is dying

China’s pop‑culture export engine, epitomised by the blind‑box craze, has entered a decisive inflection point. The rapid rise and now‑waning enthusiasm for Pop Mart’s flagship Labubu monsters illustrates how a single viral moment can propel a domestic brand onto the global stage, yet also expose the fragility of growth that depends on fleeting consumer hype. As the world watches Beijing’s cultural commodities sector, the Labubu slowdown offers a prism through which to assess the broader sustainability of China‑originated consumer trends, the strategic calculus of state‑backed firms, and the implications for China’s soft‑power ambitions.

From viral novelty to global franchise: the Labubu ascent

The Labubu line, launched in 2019, quickly transcended its status as a simple toy to become a cultural phenomenon. Pop Mart’s blind‑box model—sealed packages containing a random figure—reinvigorated the nostalgia of childhood surprise, a sentiment echoed by marketing professional Katelynn Carlson, who described the experience as “opening gifts as a child.” This emotional hook, combined with the scarcity inherent in blind boxes, drove collectors to pay premium prices on secondary markets and even commission bespoke accessories, such as the jagged‑tooth replica worn by a North Carolina collector known as Ensito.

Celebrity endorsement amplified the brand’s allure. High‑profile figures, including Kim Kardashian and Blackpink’s Lisa, were photographed with Labubu dolls, turning the collectibles into fashion statements. Demand surged to the point where Pop Mart temporarily withdrew the toys from UK stores after reports of customer altercations, and a single fan reportedly paid more than $150,000 for a life‑size Labubu. By the end of September 2026, Pop Mart operated 500 shops across more than 30 countries and maintained 2,000 vending machines worldwide, underscoring the scale of its international footprint.

The economics of a viral moment: revenue peaks and the first signs of fatigue

Pop Mart’s meteoric growth was underpinned by a revenue surge that, at its height, positioned the Beijing‑based firm above traditional US toy giants Hasbro and Mattel. However, the company’s recent financial disclosures reveal a sharp contraction. Global sales in the three‑month period ending September fell by as much as 50% year‑on‑year, with the decline most pronounced outside mainland China. US revenues contracted by at least 70%, indicating that the overseas market, once a key growth engine, is now receding.

Analysts attribute this downturn to the erosion of the exclusivity that initially fueled the craze. As ChoZan researcher Ashley Dudarenok notes, Pop Mart’s ramped‑up production diluted the scarcity that made Labubu collections feel special. The proliferation of the dolls across retail shelves—“a whole series of Labubus sitting there,” observed Ensito—has transformed the product from a coveted rarity into a commonplace commodity, undermining the psychological drivers of the blind‑box model.

Consumer behaviour: the shift from hype to curated collecting

Interviews with collectors illustrate a broader evolution in consumer attitudes. Early adopters, such as Ensito, invested heavily—spending over $50,000 to amass a collection of more than 400 Labubu figures—and even altered their personal appearance to signal affiliation with the community. Yet, as the novelty waned, these same individuals recalibrated their engagement. Ensito now pivots toward other trends like Hello Kitty and squishies, while Melbourne‑based creator Lawrence Yu, after two years of intensive Labubu chasing, describes himself as “more selective,” limiting future acquisitions to items he genuinely appreciates.

Conversely, a segment of collectors remains attached to the brand for intrinsic reasons unrelated to trend dynamics. Hedy Khaled, a Liverpool resident, maintains a collection of 70 Pop Mart figurines despite acknowledging the hype’s cooling. Carlson emphasizes that the enduring appeal lies in the joy the toys bring, not the viral buzz, suggesting that a core fan base may sustain modest demand even as mass appeal diminishes.

Competitive pressures and the diversification of blind‑box markets

The contraction of Labubu sales coincides with the rise of alternative blind‑box offerings. Brands such as Sonny Angels, miniature glow‑in‑the‑dark Smiski figurines, and Miniso’s Disney and Marvel blind‑box lines have captured consumer attention. Miniso, originating from Guangzhou, operates over 8,000 global outlets and leverages the blind‑box format to sell a wide array of licensed characters, underscoring the model’s adaptability beyond Pop Mart’s proprietary IP.

Market participants, including Miniso executive Vincent Huang, argue that brand origin matters less than the shopping experience, design quality, and perceived value. This sentiment reflects a broader shift toward experience‑driven consumption, where the novelty of the blind‑box mechanism is repurposed across diverse franchises, diluting Pop Mart’s unique position in the niche.

Strategic implications for China’s cultural export agenda

Pop Mart’s trajectory offers a case study in the challenges confronting China’s cultural export strategy. While the company’s rapid expansion and near‑$24 billion valuation demonstrate the potential of domestically cultivated IP to achieve global scale, the reliance on viral momentum raises questions about long‑term viability. The firm’s attempts to transition from product‑centric to story‑centric branding—evidenced by the establishment of a Beijing theme park and the announcement of a Labubu film—mirror the playbooks of Western entertainment conglomerates that prioritize narrative before merchandise.

Nonetheless, as ChoZan analyst Dudarenok observes, Pop Mart is “working in reverse,” attempting to generate affection for characters without an existing celebrity or narrative scaffolding. The forthcoming year will test whether the company can cultivate a sustainable franchise ecosystem comparable to Disney’s, or whether it will remain dependent on episodic hype cycles. The outcome will inform Beijing’s broader policy on supporting creative industries as instruments of soft power and economic diversification.

Outlook: navigating the post‑viral landscape

Looking ahead, Pop Mart faces a dual imperative: reinvigorate its flagship Labubu line through authentic storytelling and diversify its portfolio to mitigate the risks of single‑product dependence. The firm’s existing network of retail outlets and vending machines provides a distribution backbone that can be leveraged for new IP launches, yet success will hinge on delivering compelling narratives that resonate across cultural boundaries.

For investors and policymakers, the Labubu episode underscores the importance of assessing the durability of consumer‑driven growth in China’s export‑oriented sectors. While the immediate sales slump signals a correction, the underlying infrastructure—global retail presence, manufacturing capacity, and a proven ability to spark viral trends—remains a strategic asset. The broader lesson for China’s creative economy is clear: converting fleeting viral moments into enduring cultural capital requires a deliberate shift from scarcity‑based hype to story‑driven brand building, a transition that will shape the nation’s soft‑power trajectory in the coming decade.

This article was produced with AI-assisted research and editorial support. Reporting is based on the source material cited below. Sources: BBC News China; bbc.co.uk; Global1.News (09 November 2026).

By Prof. Marcus Chen, Staff Writer