Culture and trends
0

What Brands Can Learn from Labubu’s Million Dollar Empire with Gen Z

labubu toys
Written by
Carla Pelosoff
Published on
July 9, 2025
Last updated
July 9, 2025

What this article covers

Subscribe to our newsletter

Subscribe to receive the latest blog posts to your inbox every week.

Subscribe

By subscribing you agree to with our Privacy Policy.

Combine Gen Z’s “f*ck it” mindset with their nostalgia for simpler times... And you get the viral Labubu toy. It’s cute, it’s modelled after illustrator Kasing Lung’s characters and it’s clipped onto every young adult’s everyday bag. And it’s not cheap.

You’ve probably been told countless times that, as they venture into adulthood, Gen Z is experiencing financial insecurity like no generation before them. 

So why are they spending hundreds on a little doll, of all things?

Gen Z: Growing Up Too Fast

Growing up is never easy for any generation, but we have to give it to Gen Z - they were coming of age through particularly unprecedented times.

Born into a hyper-digital world, they faced unfiltered access to the internet, social media-fueled comparison culture, cyberbullying, and a pandemic that stole key developmental years. 

Instead of throwing crumbled up confession notes at their crush in class, they slid into their DMs. Instead of friend hang-outs at the cinema, they had Zoom calls and Netflix Party. 

Now, entering adulthood, Gen Z is navigating financial instability and a climate crisis painting a bleak vision of their future. 

So can we really blame these young adults for craving an escape? Even if that means falling into the trend of splurging on a tiny toy with serrated teeth…

Brands that understand how Gen Z was shaped can create products that feel less like “just stuff” and more like lifelines.

The Rise of “Kidulting” and Healing the Inner Child

@soukilps This is called healing 🧸🎀 What was your favorite toy as a child? @Littlest Pet Shop #nostalgia #childhood #lps #lpstiktok #lpstok #lpscollector #lpscollection #childhoodtoys ♬ original sound - brooklyn⁷

Antonin Fiacatier, Editorial Director at YPulse, shared some data from his research at YMS:

“87% of European 18-24-year-olds purchased toys or games in the last year.”

Labubu is part of a larger “kidulting” trend; a wave of young adults reclaiming the joy of childhood through toys, cartoons, and play. But this isn’t a sign of immaturity; rather of self-healing.

Social media is full of content around “healing your inner child,” a therapeutic framework embraced by Millennials and Gen Z who feel they were forced to grow up too fast.

So, Labubu isn’t just cute… it’s cathartic. It symbolizes softness in a harsh world.

The brands that win with Gen Z are the ones that meet emotional needs, not just functional ones.

From Picture Book to Pop Culture Icon

@popmartuk LABUBUs are back! 🎉 You can now enter THE MONSTERS draw every week from Friday 7:00PM - Sunday 7:00PM via the link below: 🎟️ https://popmart.runfair.com/gb Save this post to sign up this weekend! ✍️ #popmart #popmartuk #popmartglobal #toystagram #collectibles #blindboxes #themonsters #labubu ♬ original sound - POP MART UK

Created in 2015 by Hong Kong-born artist Kasing Lung, the mischievous little Labubu debuted in a Nordic mythology-inspired picture book. It became a collectible figurine through a collaboration with Beijing-based Pop Mart, part of their “The Monsters” series.

In 2024, that series pulled in nearly 3 billion yuan (€390 million) in revenue, a 726.6% year-on-year jump. That surge was fueled by Labubu’s global fandom, especially among teens and young adults. Today, Labubu dolls are clipped to backpacks, belts, and handbags as part accessory, kind of an emotional support token.

Labubu has become a status symbol that blends fashion, fandom, and feeling; all essential currencies in Gen Z’s world.

If you can create something Gen Z wants to wear, share, collect, become obsessed with… you’ve cracked the code.

Chaos Meets Comfort: Why Gen Z Spends on Labubu

You’d think Gen Z, under constant financial stress, would be pinching pennies. Instead, they’re embracing a “f*ck it” mindset when it comes to micro-luxuries or “little treats.” Especially ones that remind them of simpler times.

According to our 2025 Youth Trends Report:

76% of UK Gen Zers and 71% of US Gen Zers make impulse purchases to relieve stress.”

That’s why Labubu’s $30 price tag hasn’t been a barrier (mind you, Gen Z are collecting these toys, so the overall price is much more), it’s a much needed dopamine hit.

Add in the thrill of Pop Mart’s “blind boxes” (mystery packaging where you don’t know which version of Labubu you’ll get), and suddenly the purchase becomes an exciting experience

Unboxing mystery boxes has become a trend on TikTok, flooded with surprised, overjoyed and sometimes disappointed reactions from Gen Zers.

Gen Z isn’t just buying into the product, they’re buying into the experience. 

When you create that emotional experience, a solo purchase turns into a Gen Z community ritual. 

Sell Joy, Not Just a Product

So what can brands learn from Labubu’s monster-sized success?

Tap into Gen Z’s emotional needs

Don’t just highlight features: speak to feelings like safety, nostalgia, or belonging.


Turn your product into an experience

Whether it’s through mystery, gamification, or shareable rituals, create excitement around the act of buying or consuming the product.


Make it social and shareable

Build in reasons to post, show off, collect, or connect, because virality is Gen Z’s love language.

Labubu proves that even in uncertain times, brands that offer small, accessible bursts of happiness can build big, loyal followings.

If your product can spark joy in the middle of chaos, you’ll always have Gen Z’s attention (and spend).

At Pion, we enable brands like Adidas, Wagamama and Prime Video to run exclusive discounts to closed-consumer groups, to boost their reach and brand loyalty.

{{ctaDark}}

Want to become Gen Z’s new favourite guilty pleasure? 

1,000+ brands trust Pion

Ready to see how Pion can supercharge your sales targets?