As popular as ever is the "blind-box" business model for Labubu, a smiling little monster
The best way to start a summer collecting craze is for someone to spend a lot of money on something ridiculous. A few summers ago, the "Bored Apes" non-fungible tokens (NFTs) demonstrated this. An infant-sized Labubu doll that brought £1.02 million (123,000) with fees at an auction in China last month will be a good investment this year.
For the uninitiated (and, to be honest, too busy), a Labubu is a "cute" little monster with furry rabbit-like ears and sharp teeth. It is more commonly seen by acolytes hanging from the purses of pop stars Dua Lipa and Rihanna as a "plushie" (soft toy) key ring. But I hope you find one in a store. With prices significantly higher than the 17+50 listed on the official website of their manufacturer, Pop Mart (where they are sold out), their retail space has shrunk to online marketplaces.
In 2015, Labubu was created by artist Kasing Lung, who is based in Hong Kong. With an Instagram post, Lisa from the Korean girl band Blackpink is credited with starting this summer's collectible craze. Authorities have prohibited a Chinese bank from using them as enticement to draw in new clients since her post last year. Additionally, in May, Pop Mart, a Hong Kong-listed company, ceased selling Labubus in British stores after fans reportedly got into fights over the limited supply. And that was before they knew exactly what they would be purchasing, assuming they managed to reach the cash register.
A key factor in Labubu's successful sales (and Pop Marts' share price, which has increased by 178 percent this year) has been the "blind-box" business model, which states that you won't know what you've purchased until you open the box. It not only promotes repurchases in the hopes of eventually acquiring the particular one you desire, but it also fuels online marketplaces where prices soar, which in turn creates demand for Labubus from collectors looking to sell a few monsters themselves. That provides Pop Mart with every motivation to release new editions in the interim.
Will the Labubu frenzy last?
The problem is that the Chinese authorities will crack down no matter how big your smile is. As reported by the Financial Times, a report published last month in the state-run Peoples Daily newspaper quoted legal experts who advocated for stronger regulation of blind boxes on the grounds that they "risked inducing addictive behavior among minors."
At least for the time being, the Labubu invasion is still going strong despite the summer's constant heat and chaos. It might fade away or develop into a variety of side projects and spin-offs. We'll find out eventually. I know which I would prefer, though, if you were to offer me Labubu or shares in Pop Mart. Then, who would be smiling?
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