Stephanie: Hello! Welcome to the new CBN x ASEAN Watch. I’m your host Stephanie Li.

Sharon: Hello, I’m Sharon Hu, your ASEAN correspondent.

Stephanie: Thank you Sharon for joining the CBN as a regular guest. So, you know I’m a heavy user of Xiaohongshu, and recently I came across so many posts by users from Hong Kong, South Korea, Malaysia, Singapore, etc, and they all feature a super-adorable toy named Labubu.

For example, a couple of TV stars from Hong Kong that I follow have posted photos with the fluffy rabbit, some with captions saying it's almost impossible to get their hands on the toy. This cheeky, toothy rabbit has apparently became a highly sought-after, must-have item, taking the region by storm.

Sharon, since you’re the ASEAN expert, could you unpack the cultural and commercial success story of Labubu for us?

Sharon: My pleasure. Let me first introduce this viral toy for the audience in case they haven’t got the chance to know it.

Labubu is an elf character recognizable for several notable features: the pointy ears, the sharp teeth that protrude from its mouth, small stature, and mischievous smile. It is part of a group of creatures called “The Monsters.” Its creator was inspired by the fairy tales of Europe and created Labubu along with the other Monsters first as characters in a children’s book. The character is featured in a number of items sold by Pop Mart, a Chinese toy company.

Stephanie: Who created Labubu?

Sharon: The creator is Kasing Lung, a Belgium-based artist. Originally born in Hong Kong, Lung moved to the Netherlands at a young age. It was in 2015 that he published “The Monsters” story series. Lung has since become a prominent artist and has had exhibitions all over the world.

Stephanie: That kind of explains the enormous enthusiasm among fans in Hong Kong.

Sharon: But there’s so much more to that. Labubu’s rise is a perfect storm of design, celebrity power, and strategic localization. Let’s start with its iconic look. Its “evil yet innocent” persona—those pointy ears, sharp teeth, and mischievous grin—create a “cute-cringe” effect that resonates with young people across the region. Unlike traditional plush toys, Labubu feels fresh and rebellious, which is a breath of fresh air in a market saturated with cutesy characters.

Stephanie: That’s a great point! I remember seeing Labubu hanging from bags in Bangkok and even in temples. What role did celebrity endorsements play?

Sharon: Massive! When BLACKPINK’s Lisa posted photos of herself with Labubu, it became a social media sensation. Her massive following in Southeast Asia, combined with the royal seal of approval from Princess Srirasm of Thailand, turned Labubu into a status symbol overnight. Even the Thai tourism board named it the “Magical Thailand Experience Officer,” which further amplified its appeal.

Stephanie: Southeast Asia seems to be the top destination for Chinese toy brands. Is that so?

Sharon: It’s true. And there are three factors to that end. First, cultural proximity. Southeast Asia’s large Chinese diaspora and historical ties to Chinese culture make it a natural testing ground for IP localization. Second, demographic dividend. 60% of Southeast Asia’s population is under 35, with massive spending power on youth-driven products. Third, strategic positioning. Brands like Pop Mart use Southeast Asia as a springboard to Europe and the U.S., leveraging its lower entry barriers compared to mature markets. The “Magical Thailand Experience Officer” is a prime example, merging cultural ambassadors with commercial appeal.

Stephanie: And the economics! I’ve done some research, and found that one doll can cost upwards of about HKD118 while a collection of six can cost you above HKD700 but these are conservative estimates. Collections can go above HKD2,300 sometimes. Some second-hand vintage or limited edition is even selling for HKD10,000 apiece, which was originally sold for about HKD600. Why did consumers go wild for these?

Sharon: It’s a mix of scarcity, collectibility, and emotional investment. Pop Mart masterfully played the scarcity card with hidden editions, driving up demand. For many young people, owning Labubu isn’t just about the toy—it’s a form of self-expression and a hedge against the pressures of modern life. Plus, the secondary market frenzy turned it into a “financial asset,” with some rare pieces soaring 50-100 times in value.

Take the Labubu x PRONOUNCE-BE FANCY NOW collaboration: Officially priced at 599 yuan, it sold out in minutes and prices tripled on secondary markets, peaking at 1,900 yuan—partly thanks to its debut at Milan Fashion Week, which introduced the brand to global collectors.

Stephanie: Labubu really ignites the frenzy of Chinese cultural IPs in Southeast Asia, showing our growing cultural confidence.

Sharon: Absolutely! Labubu’s global appeal isn’t just about “cool design”—it’s also tied to cultural confidence. Companies like Pop Mart are betting big on Chinese originals. Take the recent collaboration with “Ne Zha 2.” The film’s global box-office success—over 1.35 billion yuan—and its tie-ins with Labubu mystery boxes have sparked frenzy across Asia. Even in Southeast Asia, fans are lining up for limited-edition Ne Zha toys, proving that “Made in China” IPs can dominate global markets when paired with storytelling and quality.

Stephanie: So, what can other Chinese designer toy brands learn from Labubu’s success?

Sharon: For one thing, deep localization is key. Pop Mart didn’t just translate their products; they tailored them. For example, they released Labubu-themed clothing in Thailand and collaborated with local influencers. They even fusion Thai boxing into exclusive collections, resonating with local culture. And in Singapore, they created a Merlion edition that spoke directly to the community.

Another lesson is leveraging digital platforms. Shopee and TikTok became key battlegrounds. Pop Mart ran targeted ads and live streams during peak shopping events, turning mystery boxes unboxing into a cultural phenomenon. In Vietnam, Labubu’s sales on Shopee, Lazada, and TikTok Shop surged 665% in Q2, from 52 million VND to over 145 million VND.

Last but not lease, embrace emotional consumption. Young Asians are increasingly seeking“soft commodity”s—products that provide comfort and identity. Labubu’s storylines, which include complex character relationships and “evil-good” dualities, offer endless fodder for fan theories and social medi a sharing.

Stephanie: It’s fascinating how a simple toy can become a cultural touchstone. What about the challenges ahead for Chinese designer toys?

Sharon: Balancing “Made in China” with “Created for the World” will be crucial. While Labubu’s success is heartening, many brands still struggle with intellectual property and regional cultural nuances. But if they can replicate Pop Mart’s blend of creativity and data-driven strategies. Pop Mart’s recent move to set up a regional headquarters in Singapore highlights their ambition to scale globally.

Beyond logistics and IP protection, there’s the risk of “cultural appropriation” backlash. While Labubu’s “evil-yet-innocent” design resonates, other brands might struggle to balance Chinese heritage with local sensibilities. Take Weishi Culture, a Dongguan-based toy manufacturer for example, its metal puzzle toys fuse Chinese intangible cultural heritage craftsmanship with modern aesthetics, but overly traditional designs could alienate younger, trend-focused consumers.

Another hurdle is building sustainable IP ecosystems. Pop Mart’s reliance on single-hit IPs like Labubu and Molly raises concerns about long-term growth. To counter this, companies are investing in content creation—like cartoon adaptations—and collaborating with local artists to foster organic cultural integration.

Stephanie: It’s clear that Southeast Asia is no longer a frontier but a core battleground for Chinese toy brands. What’s your take on their future?

Sharon: The key is to move beyond “Chinese elements for export” and embrace true hybridization. Look at how Pop Mart tailored Labubu’s Thai editions with Thai boxing motifs or partnered with Singapore’s Merlion legend—it’s about co-creating meaning with local cultures.

As one Indonesian fan put it: “Labubu isn’t foreign to us—it’s part of our street culture now.” If brands can replicate this balance of global creativity and hyper-local relevance, the sky’s truly the limit.

Stephanie: Wow, there’s so much to look forward to! Thank you so much again for sharing your wonderful thoughts and observations with us today. For more exchanges on the fascinating business world in ASEAN, stay tune for the next episode of CBN x ASEAN Watch. Until then, keep it crunchy!

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC

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