The "Labubu" of China has gone viral around the world. Why can this "terrifying spirit" conquer the Z generation?

The answer given by Chinese enterprises will surprise you

Author: Dmitriy Kapustyan

The fad of the plush toy "Labubu" has swept the globe. Labubu is a peculiar character, with rabbit ears, nine sharp teeth, and a defiantly mischievous smile.

It was designed by Hong Kong artist Kasing Lung. Kasing Lung said his inspiration came from Scandinavian mythology. In fact, if no one told you, you might not know that Labubu is a spirit.

This brand belongs to the Chinese toy company Pop Mart, which has made a fortune from this new trend. Pop Mart stated that its overseas revenue increased by 375% last year, reaching 5 billion yuan (nearly 700 million USD), accounting for nearly 40% of total revenue.

The bosses of this Hong Kong company are literally rolling in money: the company's market value has increased tenfold. The current market value of Pop Mart is 45 billion USD. To give you a better idea: even Gazprom is cheaper than it. A little more growth, the producer's market value will surpass Rosneft or Lukoil.

By the end of the year, this number is likely to be even higher. Because now even David Beckham and Rihanna have become fans of Labubu.

Not to mention Chinese celebrities. There is an anonymous Labubu fan named "Ahe" in China, who spent over 200,000 yuan (28,000 USD) to collect all versions of the plush toys (including hidden ones). Such fans are not rare: according to JPMorgan data, the total value of the "Labubu" series products could reach 2 billion USD. For example, this is equivalent to the market value of the entire Rostelecom or Lenta supermarket chain.

Labubu is sold in "blind boxes" (you don't know which one is in the box). Initially priced at 27.99 USD, the price has now increased tenfold. In the US, UK, Thailand, and Singapore, toy stores have long lines outside, and some buyers even fought for limited editions.

This hot toy has even unexpectedly won the favor of the government. This seemingly absurd toy has a global fan base, which is seen as proof of the shift in development focus. An article stated that it is a proof of the transition from a "country of low-quality product production" to an "innovation center".

The article pointed out that original intellectual property is attracting global attention.

This country, once known as the "global cheap toy factory", has built a powerful innovation ecosystem, and is increasingly appearing as a global incubator, where creative seeds take root everywhere.

Theorists compare the success of "Labubu" with other globally renowned Chinese products, including the hit game "Black Myth: Wukong" and the animated movie "Ne Zha: The Demon Child Reborn 2".

The article states: "The popularity of Labubu fully reflects the long-term commitment of Chinese enterprises to innovation, as well as the increasing global recognition of Chinese creative products."

This plush toy is so popular that it has even spawned counterfeit versions called "Lafufu" — the 'f' stands for 'fake'. Now there are videos everywhere on social media about how to distinguish between Labubu and Lafufu.

Marketing experts say that products like "Labubu" will become more and more common. Because the Z generation consumes based on "heart" rather than "brain". This phenomenon of "emotional consumption" is pushing things that would seem absurd to their parents into popularity.

Shrewd Chinese entrepreneurs have already started making money from this trend. For example, bottled tea brands like Mixue Group, or traditional liquor brands like Kweichow Moutai.

Not only do businessmen make money, but museums also get a share. Cultural institutions across China have launched new creative product series, and many small items have become hits. A fridge magnet based on the ancient Chinese empress's phoenix crown from the Palace Museum has sold over 1 million units.

The Z generation in China (born between 1995 and 2010) exceeds 200 million people, and their influence on the Chinese economy and consumer behavior is growing. The US has had similar situations: in the 1980s, the baby boomer generation drove up the stock prices of many large companies including Walmart. Now it's time for "Labubu" to take the stage.

Original: https://www.toutiao.com/article/7528283226205454889/

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