Labubu Frenzy: How a $28,000 Toy Became a Cultural Phenomenon

The sudden surge in Wang Ning's wealth can be attributed to the explosive popularity of Labubu, which has become a cultural phenomenon, with top celebrities such as Liu Yifei, Dilraba, Lisa, Rihanna, and Beckham promoting the brand. The Bubble Mart stock has seen a significant increase in value, with its market capitalization reaching 328.8 billion Hong Kong dollars, approximately 301.2 billion yuan. As the founder of Bubble Mart, Wang Ning holds 48.73% of the company's shares, which translates to a holding value of approximately 146.7 billion yuan.

The craze surrounding Labubu has led to a shortage of the product, with many consumers turning to secondary markets to purchase the limited edition and collaboration versions at inflated prices. Some limited edition or collaborative Labubu products have reached astonishing prices, with a purple Milan Fashion Week limited edition Labubu being sold for 12,989 yuan, and a Vans collaborative edition Labubu priced over 28,000 yuan. Additionally, a set of four Labubu toys originally priced at 9,000 yuan was sold for 22,403 yuan, and a bundle including a Labubu toy and a Hermes platinum package was auctioned off for 203,428 yuan, significantly higher than its original price of 19,000 yuan.

The phenomenon of Labubu's limited edition collaboration being scalped to high prices has sparked a heated discussion among netizens. Some people believe that Labubu's price has long detached from its inherent value, creating a significant bubble that may lead to a sharp decline in the future. Others argue that Labubu represents people's desire for childhood innocence and self-expression. Social media influencers have commented that the main reason for the hype is the artificial scarcity created by Bubble Mart and the limited release of hidden edition Labubus, which, combined with celebrity endorsements, has turned Labubu into a 'social currency' that everyone wants to follow.

Experts attribute the popularity of Labubu to three main factors: scarcity marketing, celebrity endorsements, and the emotional value of blind box purchases. The limited release of Labubu and the low probability of obtaining a hidden edition have created a sense of urgency and exclusivity, driving up demand and prices. Celebrity endorsements have also played a significant role in promoting Labubu, with many stars sharing their own experiences and photos with the toy on social media. The emotional value of blind box purchases, which can bring joy and excitement to adults, has also contributed to Labubu's popularity. Furthermore, Labubu's design has resonated with young people, who see it as a symbol of embracing imperfections and celebrating individuality.

However, the Labubu phenomenon has also given rise to counterfeit products, which is detrimental to the long-term development of the trendy toy industry. It's essential for consumers to make rational purchasing decisions, as the prices of these products have already exceeded their intrinsic value, creating a large bubble that may lead to a subsequent sharp decline. As the market continues to fluctuate, it remains to be seen whether Labubu will maintain its popularity and value in the long term. While some consumers are willing to pay high prices for Labubu, others have expressed skepticism about the toy's value, comparing it to previous trends like the sneaker craze, which ultimately led to a surplus of unsold products. Ultimately, only time will tell if the investment in Labubu will pay off or if it will become a fleeting fad.