If you walked through any major global city, scrolled through TikTok, or glanced at luxury designer handbags over the past couple of years, you could not escape it: a small, furry monster with nine pointed teeth, oversized ears, a devious grin, and a chaotic expression staring back at you.

Her name is Labubu. Created by Hong Kong artist Kasing Lung in 2015 as part of “The Monsters” series and commercialized by Chinese designer toy titan Pop Mart, Labubu evolved from a niche art figure into one of the most explosive pop-culture phenomena of the mid-2020s. At the peak of her popularity, people lined up around city blocks for hours, fought over limited-edition drops, paid 500% resale markups on StockX, and clipped plush versions of the elf onto thousand-dollar Hermès Birkins and designer totes.

Yet almost as rapidly as Labubu conquered fashion runways and social algorithms, the fever cooled. Resale prices tumbled, store queues dissolved, and the internet moved on to its next fix.

So, what actually happened to Labubu? How did an oddball monster become a multi-billion-dollar global obsession, and why did the hype machine inevitably burn itself out?

1. The Anatomy of a Craze: Micro-Influencers to Mega-Stars

Labubu had existed peacefully in the designer-toy world for years. Collector circles loved her “creepy-cute” aesthetic—a sweet spot between Tim Burton fantasy and Japanese kawaii culture. But the true explosion occurred in mid-2024.

The catalyst? K-pop megastar Lisa of BLACKPINK.

When Lisa posted photos on her Instagram stories carrying a Labubu plush keychain, she triggered an unprecedented global domino effect. Overnight, Labubu transitioned from an art-toy collectible to an essential fashion accessory. The key innovation was turning the figurine into a bag charm. A standard vinyl figure sits on a shelf at home; a bag charm travels to cafes, offices, airports, and Instagram grids.

Suddenly, adults worldwide were buying into “bag charm flex culture.” Labubu became social currency. Soon after, influencers, fashion editors, and fellow celebrities jumped aboard. Pop Mart stores from Bangkok to London and New York reported instant sell-outs. In Thailand, the phenomenon became so intense that Labubu images were incorporated into good-luck amulets, and government tourism boards leaned into the monster to boost local travel.

2. Dopamine on Demand: The Blind Box Strategy

Pop Mart did not succeed purely on aesthetic luck; they relied on psychological mechanics. Labubu was predominantly sold in blind boxes—opaque packages where buyers do not know which specific variation they are purchasing until they rip open the foil.

This model triggers three distinct psychological mechanisms:

• The Variable Reward Loop: The thrill of uncertainty releases dopamine in the brain in the exact same manner as a slot machine. Buying a single box rarely satisfies; the surprise drives immediate repeat purchases.
• The Zeigarnik Effect & Completionism: Collections usually contain 12 standard designs plus a 1-in-72 hyper-rare “Secret” figure. Unfinished collection sets trigger a psychological discomfort that compels buyers to keep spending until the set is complete.
• Manufactured Scarcity: Pop Mart deliberately restricted supply on popular lines like the Exciting Macaron series. When an item is nearly impossible to purchase at retail value, its perceived social value skyrockets.

For months, this flywheel was unstoppable. Pop Mart’s financial reports saw revenue double, turning the company into a global retail force and elevating its founder into China’s top billionaire ranks.

3. Over-Saturation, “Lafufus,” and the Market Flood

Every viral trend carries the seeds of its own decline, and Labubu reached critical saturation points quickly.

The Flooded Supply Chain

To meet overwhelming global demand and capitalize on record profit margins, Pop Mart scaled up factory production significantly. While this solved short-term inventory shortages, it destroyed the core element driving the craze: exclusivity. When everyone on the subway has a Labubu hanging from their bag, the item loses its status as a flex.

The Knockoff Invasion

The sheer speed of Labubu’s virality created a gray-market vacuum that fake manufacturers immediately filled. Dubbed “Lafufus” across social media, low-quality counterfeit versions flooded street markets, Amazon, and online storefronts. The market became oversaturated with cheap imitations, diluting the brand’s premium appeal.

Resale Bubble Pop

At the height of the craze, mystery boxes retailing for around $20 to $27 were reselling online for $100 or more, while rare secret figures commanded hundreds. However, as secondary market supply outstripped organic demand, prices collapsed. Boxes that once fetched extreme premiums began selling below retail price on aftermarket apps. Once fast-fashion flippers and scalpers realized quick profits had evaporated, speculative buyers vanished.

4. Trend Fatigue: The Modern Lifecycle of Micro-Fads

The story of Labubu is fundamentally a story about how fast culture moves in the digital era.

In previous decades, toy fads like Beanie Babies or Tamagotchis took years to build momentum and years to unwind. Today, TikTok algorithms accelerate cultural lifecycles into fast-forward mode. A trend can go from obscure to omnipresent to exhausted in a 12-month span.

Labubu suffered from extreme algorithm-driven burn-out. When every second video on social feeds features unboxing reactions, haul reviews, and bag-styling guides, audience fascination turns into aesthetic fatigue. Consumers who bought in purely due to FOMO (Fear of Missing Out) quickly moved on to the next viral obsession.

5. Where Does Labubu Go From Here?

Does the end of the hyper-fever mean Labubu is dead? Not quite.

Labubu is transitioning from a speculative viral frenzy into a stable, mature brand property. Pop Mart has actively diversified its portfolio, redirecting focus toward other popular character IPs like Hirono, Skullpanda, and Dimoo, while pursuing international brick-and-mortar flagships and media adaptations.

Much like Hello Kitty, Bearbrick, or KAWS, Labubu doesn’t need to maintain 400% annual hype to survive. The casual trend-chasers have moved on, leaving behind a dedicated core fan base of art-toy enthusiasts and collectors who genuinely love the character for its artistic design rather than its resale value.

WTF happened to Labubu? She didn’t fail—she simply went through the natural evolution of viral pop culture. Labubu proved that even a chaotic little elf with pointed teeth can rule the global fashion world, if only until the internet finds its next shiny distraction.

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