China’s global influence today leans heavily on a nuanced blend of soft power that often surpasses its use of traditional hard power. China’s strategy is distinctive in that its soft power is closely linked to its economic strength and technological capabilities, along with cultural initiatives to broaden its influence in a more subtle and enduring way that goes beyond economic coercion, military strength, or financial dependencies of the world on China.
Going beyond military intervention, economic sanctions, trade tariffs, and threats, it is the “soft power” that now extends beyond traditional cultural exports to include designer toys. Labubu, a collectible elf-inspired toy designed by Hong Kong artist Kasing Lung and brought to widespread fame by the Chinese company Pop Mart, has turned into a cultural sensation, showcasing China’s capacity to influence global consumer behavior and perceptions through innovative pop culture and retail strategies. China is achieving faster product launches by combining advanced manufacturing systems with real-time data-driven decision-making. Factories use smart manufacturing technologies—such as automation, robotics, and AI-powered analytics—to streamline every stage of production. AI analyzes daily sales performance from stores and online platforms, enabling companies to instantly detect shifts in consumer demand and preferences.
Global Spread and Cultural Impact
Labubu dolls have become sought-after collectibles in cities worldwide, with long lines at Pop Mart stores in Los Angeles, London, Tokyo, Milan, and Bangkok. Special limited-edition releases frequently sell out almost immediately, and localized versions—like the Singapore-exclusive “Merbubu”—demonstrate how the brand connects with regional cultures while maintaining its Chinese heritage. Labubu’s influence is also magnified by celebrity fans, including Blackpink’s Lisa, Rihanna, Dua Lipa, Kim Kardashian, David Beckham, etc., who post about the dolls, driving frenzies across Asia and beyond.
Financial Figures and Market Impact
Labubu’s tremendous success has propelled Pop Mart to become a major global player, with a market capitalization surpassing that of Mattel and Sanrio, best known for Barbie, Hot Wheels, Fisher-Price, UNO, etc. As of mid-August 2025, Pop Mart’s market capitalization stood at approximately 424.75 billion Hong Kong dollars (around US$ 54 billion). In contrast, Mattel’s market capitalization is about US$ 5.7 billion. This means Pop Mart’s market cap is roughly 9 to 10 times larger than Mattel’s as of mid-2025.
Pop Mart’s revenue from markets outside China soared by 375.2 percent to CNY 5.07 billion (US$ 703 million) in 2024, with Citigroup research estimating that the company’s revenue in the US increased by approximately 895 percent to 900 percent. This rapid growth is further supported by a wide range of other collectible figures, such as Baby Molly, Crybaby, Dimoo, Pucky, and over 30 additional characters available on the company’s US website.
In the first half of 2025, Pop Mart experienced a 396.5 percent increase in net profit and a 204.4 percent rise in revenue compared to the previous year, with Labubu accounting for over one-third of the company’s total revenue. Sales from the Americas skyrocketed by 1,142 percent, while revenue grew by 258 percent in Asia (excluding China) and 729 percent in Europe year-over-year.
Rare Labubu editions have achieved record-breaking prices at auctions; notably, in June 2025, a four-foot-tall mint-green Labubu sold for US$170,000 in China, highlighting the toy’s value among international collectors and the expansive influence of the Pop Mart brand. By mid-2025, the Labubu product line had grown to include over 300 varieties, with prices ranging from US$ 15 for smaller figures to nearly US$ 1,000 for the larger “mega” editions. However, the popularity has also led to widespread counterfeiting with toys called Lafufu, prompting increased enforcement efforts by Chinese authorities.
In August 2025, Pop Mart’s CEO Wang Ning announced that daily global sales of Labubu were expected to exceed 10 million units by September. Currently, Pop Mart operates around 40 stores in the US and approximately 400 locations in China. It plans to double the number of stores in the US. On June 18, 2025, Alibaba and AliExpress debuted Labubu in the US through a livestream event, which resulted in an immediate sell-out. Similarly, JD.com’s global pre-sale of Labubu 3.0 saw over 300,000 units sold within just one week, offering both authenticity and access to rare editions. This combination of viral blind box culture, themed product releases, and speedy cross-border delivery has helped make Labubu a mainstream sensation in the US market.
Conclusion
Labubu has evolved into both a commercial powerhouse and a symbol of Chinese cultural innovation and manufacturing excellence. Its worldwide popularity marks a new chapter in China’s soft power strategy, transforming the perception of “Made in China” from simple production to impactful cultural influence through products like Labubu. Although the US-China trade war and associated tariffs have created obstacles for numerous Chinese products, Labubu’s popularity has remained notably strong despite these challenges. Pop Mart has responded to tariff pressures by diversifying its supply chain, modifying pricing approaches, and rapidly expanding into markets outside the US as well. High demand from fans, especially within the Gen Z demographic, has sustained robust sales even as average effective tariffs on Chinese imports into the US have increased by 51.8 percent. This resilience manifested by Chinese Labubu highlights how Chinese brands are not only navigating challenges posed by geopolitical pressures but are also redefining global consumer culture by blending creativity with smart market expansion.
