Monstrous success: How a Chinese toy sensation is thriving despite trade barriers
- Alice
- 3 days ago
- 3 min read
Published May 2, 2025
Subramania Bhatt (Subbu), Founder and CEO of China Trading Desk, recently joined CGTN’s internationally broadcast podcast Chat Lounge to analyse the meteoric rise of Labubu, a China-made designer toy that has sparked a global craze from Asia to North America.
Appearing alongside Helen Han, Co-founder and Secretary General of Beijing Club for International Dialogue, and Professor Liu Baocheng, the Director of the Center for International Business Ethics at University of International Business and Economics, Subbu explored the cross-cultural marketing, emotional branding, and digital strategy that have powered Labubu’s international success.
Subbu explained that Labubu’s appeal stems from its playful yet rebellious design—a blend that resonates with young adults in highly structured societies like Singapore and China. In his words, “Labubu is not just a toy, but a form of emotional release in times of social pressure and economic uncertainty.”
Its popularity underscores the rise of the emotional economy, where purchases are driven not by utility but by identity, self-expression, and psychological comfort. Subbu noted that while some editions sell for over $99 USD in the secondary market, the typical price range of $20–30 USD represents an affordable luxury, mirroring the “lipstick effect”—a phenomenon where consumers reduce major expenditures but continue to indulge in smaller, emotionally gratifying purchases.
As the creator of Labubu, PopMart has executed a highly strategic international expansion, achieving a staggering 900% sales growth in the United States and 600% in Europe. Subbu highlighted several key tactics that contributed to this:
• Aggressive rollout of retail stores and vending machines worldwide
• Development of original IP alongside global artist collaborations
• Consistent localisation and narrative branding
• Targeted campaigns aimed at Millennials and Gen Z
• Viral marketing across social media platforms, supported by influencers and storytelling
"PopMart reflects a new generation of Chinese companies that are excelling at global brand building and fast consumer feedback cycles,” said Subbu. “Their operations within China’s advanced e-commerce and social media ecosystems give them unmatched agility, similar to the dynamics of fast fashion.”
According to Subbu, Labubu’s success is not merely cultural but operational. Although it originated in China, the character is based on Nordic mythology, demonstrating the company’s understanding of universal design language rather than overt cultural export.
He sees this as a signpost for China’s shift from OEM (Original Equipment Manufacturing) to OBM (Original Brand Manufacturing)—creating global IPs that can carry soft power and cultural influence. “Think of what Studio Ghibli is to Japan or what K-pop is to Korea,” Subbu remarked. “Chinese brands can achieve the same global presence through emotional storytelling and nuanced cultural design.”
He encourages Chinese brands to target the growing segment of ‘kidults’—young professionals who crave playfulness and comfort as they navigate adulthood, social anxiety, and evolving identities.
From the perspective of China Trading Desk—a company that helps Chinese brands grow internationally—Labubu represents a blueprint for success in today’s globalised market. Subbu advocates for:
• Building globally appealing IPs rather than relying on domestic culture alone
• Creating standardised franchise and licensing systems to scale internationally
• Offering limited editions tied to local and global cultural calendars
• Enhancing interactive storytelling and community-driven fandoms
"Labubu’s success illustrates the power of emotional resonance, platform agility, and cultural adaptability," said Subbu. "For China’s consumer brands, this is the time to evolve from being product-driven to becoming emotionally and culturally fluent."