One Doll, ₩50 Trillion Market Cap… The Success Equation of 'Pop Mart' That Created the 'LABUBU' Boom
Walking down the street these days, you'll see a doll hanging from the bags of teenagers and twenty-somethings as if by appointment. A bizarre yet cute character with fluffy fur, large rabbit ears, and pointed teeth. It's 'LABUBU' from the Chinese toy brand **'Pop Mart'**.
LABUBU has become more than just a doll; it's a 'cultural phenomenon'. And Pop Mart, which has surpassed a market capitalization of ₩50 trillion with this small character, has risen to become a global company. What exactly is their formula for success?
The 'LABUBU' Phenomenon: A Syndrome Beyond a Simple Trend
Currently, LABUBU's popularity is beyond imagination.
- 'Must-Have Item' for Global Celebrities: Its popularity soared as world-renowned figures like BLACKPINK's Lisa, pop star Rihanna, and David Beckham endorsed it on social media.
- Appearance of 'Doll Smuggling': As it became difficult to obtain LABUBU in China, there have even been cases of people being caught smuggling dolls bought overseas to resell them at high prices.
- Skyrocketing Resale Prices: A limited edition product (original price approximately ₩110,000) collaborated with the fashion brand 'Vans' saw its resale price soar to a whopping ₩2.85 million.
- Overheated Popularity: In London, UK, even physical altercations broke out over LABUBU purchases, to the extent that Pop Mart temporarily suspended local sales due to concerns about overheating.
Pop Mart's Success Equation: How Did They Captivate the World?
How did Pop Mart, which started in a small shopping mall store in Beijing in 2010, manage to build a global character empire? The secret lies in the following:
- Evolution from 'Concept Store' to 'IP Giant':
Initially, Pop Mart was a 'concept store' that collected and sold toys from around the world. However, in 2016, they completely changed their business direction by acquiring the IP (Intellectual Property) of the character 'Molly' from a Hong Kong designer and creating their own products. LABUBU was also discovered and acquired by Pop Mart from Hong Kong designer Kasing Lung's fairy tale character and commercialized. In other words, **discovering and acquiring promising IPs and making them globally successful 'IP business'** is their core strategy. - 'Random Box' Strategy to Stimulate Purchase Desire:
An indispensable part of Pop Mart's success is its 'random box (blind box)' sales method.- Stimulating Collection Desire: They release a single character in various designs to stimulate fans' desire to collect.
- Providing 'Fun of Drawing': By packaging the contents unknown, they provide the fun and thrill of playing a 'random draw game'.
- Inducing Repeat Purchases: Fans repeatedly purchase until they get the desired design or to collect the entire series.
Thanks to this strategy, 85% of Pop Mart's total sales currently come from its own IPs.
LABUBU's Secret to Popularity: Why Are Gen Z So Enthusiastic?
Among countless characters, why is LABUBU in particular receiving such immense love?
- The Charm of 'Imperfection': LABUBU is a benevolent fairy in the fairy tale who "always tries to help but always gets in the way." This 'imperfect' appearance resonated more genuinely with Gen Z, who are tired of a world full of filters.
- Targeting 'B-Grade Aesthetics': Not a refined and perfect beauty, but a crooked smile and bizarre expression. This unique B-grade aesthetic that straddles the line between 'cuteness and oddity' precisely targeted the tastes of the younger generation who value individuality.
- Celebrity Effect and Scarcity: Coupled with the endorsements from celebrities mentioned earlier and the limited edition strategy, LABUBU has become more than just a doll; it has become a 'hip item I want to own'.
Result: Stock Price Rises 6-fold, Market Cap Exceeds ₩50 Trillion
Driven by these successful strategies, Pop Mart recorded explosive growth. Its overseas sales in Q1 this year surged by 480%, and its stock price jumped 6-fold in a year, surpassing a market capitalization of ₩50 trillion. JP Morgan evaluated that "LABUBU is emerging as a super IP surpassing Hello Kitty," predicting that Pop Mart's rapid growth will continue.
Starting from a small character shop, Pop Mart stole the hearts of Gen Z worldwide and built a giant business empire. Their success story is the best example of what synergy can be created when a well-crafted IP meets a meticulous strategy.
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