Labubu vs. Beanie Babies: A Deep Dive into Two Collector Crazes

Introduction

In the late 1990s an unassuming $5 toy called the Beanie Baby became a cultural phenomenon in the United States. Thirty years later another plush creature—the Labubu monster from Hong Kong–born illustrator Kasing Lung—sparked similar scenes of long queues, resale frenzy and celebrity endorsements across East Asia and beyond. Though both phenomena revolve around cute plush toys, they emerged in very different economic and media environments. This report compares these collectible booms, digging beneath headline‑grabbing resale prices to examine design philosophy, marketing strategy, fan communities, regional reach, secondary‑market speculation and what these fads reveal about the psychology of modern collecting.

Origins and design ethos

Beanie Babies (1993–1999)

• Creator – Ty Warner launched Beanie Babies through his Chicago‑based company Ty Inc. in 1993. The toys were intentionally under‑stuffed so they could be posed, and each came with a heart‑shaped swing tag featuring a poem and “birthday” penned by Ty employee Lina Trivedi ^[source]. Such personalisation endowed the animals with personalities and encouraged emotional bonding.
• Design philosophy – Ty emphasised low price (US$5), huggable texture and simple animal designs. Warner’s early marketing relied on distributing small quantities to mom‑and‑pop stores and “retiring” designs to create scarcity ^[source]. The deliberate rarity and the stories printed on the tags were central to the toys’ allure ^[source].
• Origin story & mythology – Warner cultivated mystery around himself and his company; he rarely gave interviews and created an aura of Willy Wonka‑like secrecy ^[source]. Collectors often attributed magical value to retired animals, and Ty fanned the speculation by stockpiling retired toys worth US$100 million to maintain scarcity ^[source].

Labubu (2015 – present)

• Creator – Labubu originated in 2015 as part of “The Monsters” picture‑book series by Kasing Lung, a Hong Kong artist raised in the Netherlands. Lung drew on Nordic fairy tales and mythology to create an elf‑like creature with pointed ears, jagged teeth and a mischievous grin ^[source]. Pop Mart discovered the character at a toy convention and began mass‑producing it in 2019 ^[source].
• Design philosophy – Labubu deliberately balances cuteness and creepiness—a style fans call “ugly‑cute.” The creature’s oversized eyes, serrated smile and furry body evoke both kawaii sweetness and gothic edge ^[source]. Lung insisted on preserving this oddity despite suggestions to make the design “prettier” for Western markets ^[source]. He also built a narrative universe around Labubu and its friends (Zimomo, Tycoco, etc.), giving fans stories to explore ^[source].
• Name & mythology – Lung chose the whimsical name “Labubu” partly because it is unique and easily searchable ^[source]. The character’s ambiguous gender and mischief‑but‑kind‑hearted persona invite diverse identification ^[source]. Pop Mart’s collaboration with Lung maintains the artist’s creative input while adapting the character to mass production ^[source].

Marketing and distribution strategies

Beanie Babies

Strategy	Evidence	Effect
Scarcity via retirement	Ty limited stores to 36 of each animal per month and frequently “retired” characters, creating supply shortages [source].	Collectors perceived retired toys as valuable investments, fuelling resale speculation and long lines outside small shops [source].
Storytelling & personalisation	Each Beanie Baby had a poem and birthday on its tag [source].	Buyers attached emotional narratives to their toys, heightening sentimental value and community bonding [source].
Early internet adoption	Ty launched one of the first business‑to‑consumer websites in 1995 and printed the URL on tags [source]. Fans shared rumours of discontinued animals online, and eBay auctions allowed people to flip Beanies for 10× their retail price [source].	Beanie Babies became one of the first products to go viral on the early internet; by 1998 they accounted for up to 10 % of eBay’s sales [source].
Community media	Mary Beth Sobolewski founded Mary Beth’s Beanie World magazine, which published price guides and organised conventions [source]. Fans queued to meet her and have magazines signed [source].	The magazine and its price lists amplified FOMO and gave collectors a forum to share knowledge, creating a sense of belonging and reinforcing speculation.

Ty’s blend of scarcity, personal storytelling and early internet marketing turned simple plush animals into speculative assets. However, the bubble collapsed when overproduction and changing tastes flooded the market ^[source].

Labubu

Strategy	Evidence	Effect
Blind‑box “gacha” model	Pop Mart sells Labubu figures in sealed boxes where the specific design is a surprise, with ultra‑rare “secret” variants [source]. New series launch frequently, and production runs are deliberately limited [source].	The lottery‑like experience encourages repeat purchases and heightens excitement, turning each release into an event; rare figures resell for US$3,000–7,000 [source].
Social‑media virality	Unboxing videos and #Labubu posts on TikTok and Instagram generate millions of views; Pop Mart hosts livestreams and surprise drops [source]. Engagement on Pop Mart’s TikTok rose by 4,873 % from 2023–24 [source].	Online buzz amplifies FOMO, and fans stay glued to screens for limited‑time drops. Hashtags and UGC (user‑generated content) turn collecting into a social game [source].
Influencer & celebrity endorsements	K‑pop star Lisa (Blackpink) shared Labubu plushies on Instagram in 2024, igniting frenzy across Southeast Asia [source]; celebrities like Rihanna, Dua Lipa and David Beckham were later seen with Labubu charms [source].	Star power vaulted Labubu from niche designer toy to fashion accessory; fans emulate celebrities, and mainstream media ask “What is Labubu?” [source].
Product diversification & collaborations	Pop Mart releases seasonal themes and cross‑brand partnerships (e.g., Labubu × Coca‑Cola, One Piece, Pronounce fashion shows) [source]. A 1.3 m Labubu sold for ¥1.08 million (~$150k) at auction [source].	Diversification keeps collectors engaged across price points; high‑end collaborations elevate Labubu into art and fashion contexts, boosting status and secondary‑market values.
Community building	Pop Mart organises swap events and maintains physical stores and vending machines where fans can gather; it also runs fan forums and exchange policies [source].	Fosters a positive community that partially offsets blind‑box frustration and encourages repeat interaction.

These strategies have paid off. Pop Mart’s revenue doubled to ¥13.04 billion (≈US$1.81 billion) in 2024, and the company’s market cap (~US$40 billion) now rivals or exceeds Western toy giants like Hasbro and Mattel ^[source]. The Monsters (Labubu’s line) alone generated over ¥3 billion in sales, representing roughly 23 % of revenue ^[source].

Fan communities and cultural resonance

Beanie Baby fandom

• Community media and conventions – Mary Beth’s magazine organised conventions in London, New York and Chicago where collectors queued to meet her and have copies signed ^[source]. The gatherings connected parents and children; Mary Beth observed that the hobby “bridged generations” and gave families something in common ^[source].
• Internet message boards and price guides – Early websites and mailing lists allowed collectors to exchange rumours about retirements and monitor price changes ^[source]. The Beanie Baby Handbook sold millions of copies and stoked unrealistic predictions of perpetual price increases ^[source].
• Speculative mindset – Many collectors viewed Beanies as investments rather than toys. Some families drained savings or purchased entire runs expecting future profits. The craze peaked when divorcing couples fought over Beanie Baby collections in court, illustrating how deeply the toys penetrated daily life ^[source].

Labubu fandom

• Global, digital-native community – Labubu’s core fans are Gen Z and millennials comfortable with digital platforms. TikTok and Instagram function as community hubs where collectors show unboxing videos, customise outfits, and even create miniature furniture for their Labubus ^[source]. Pop Mart reposts UGC and encourages creativity ^[source].
• Fashion and lifestyle integration – Labubu is not merely a toy; fans wear Labubu charms on designer handbags and create Labubu‑themed outfits. Life‑sized Labubu figures appeared on the runway at Milan Fashion Week 2024 ^[source]. Carrying a Labubu keychain became a marker of street‑fashion savvy.
• Cross‑regional communities – In China, Labubu fever led to long lines, smuggling across borders and even a Pop Mart theme park ^[source]. In Thailand, the Tourism Authority invited Labubu to act as an “Amazing Thailand Experience Explorer” mascot ^[source]. Japanese fans embrace Labubu’s busukawa (ugly‑cute) aesthetic and hunt for exclusive editions ^[source]. Western fans camp outside Pop Mart stores, and UK outlets temporarily halted sales after fights broke out in stores ^[source].
• Community swaps & speculation – Pop Mart hosts swap events and online trading nights. Fans rely on Discord and Facebook groups to trade duplicates and discuss new series. The blind‑box model and limited supply have fuelled a secondary market akin to sneaker culture; bots and resellers queue digitally and flip rare Labubus at 10–100× markups ^[source].

Economic and social forces

The Beanie Baby bubble

During its peak (1995–98), the Beanie Baby boom intersected with a period of economic optimism and the early internet. Ty Inc.’s strategy of retiring animals created artificial scarcity. Because Ty limited distribution to small shops, supply shortages intensified FOMO.

The early internet amplified speculation: Ty’s website was among the first corporate sites, and eBay allowed ordinary people to auction Beanies for multiples of their retail price ^[source]. At one point 10 % of all eBay transactions involved Beanie Babies ^[source]. Mainstream media reported stories of collectors paying thousands of dollars for rare Beanies or splitting collections during divorces, fuelling a feedback loop of hype and greed. However, the bubble soon burst. Overproduction, numerous spin‑off lines and Ty’s decision to “unretire” some toys diluted scarcity ^[source]. Speculators were left with piles of worthless plushies, though a few rare pieces still fetch modest sums.

Labubu’s boom in the 2020s

Labubu arrived in a very different economic and social landscape. Pop Mart targeted young consumers in China who had disposable income and were accustomed to blind‑box gacha mechanics from mobile games and Japanese capsule toys ^[source]. Social media ecosystems turned each product drop into a shareable event. Pop Mart’s revenue doubled to ¥13.04 billion (≈US$1.81 billion) in 2024 ^[source], and the company’s market cap (~US$40 billion) exceeds those of some Western toy conglomerates ^[source].

The secondary market is robust: limited‑edition Labubus retail for US$13–16 but can resell for US$700 ^[source]; a mint‑green four‑foot Labubu sold for US$172,800 at a Beijing auction ^[source]. Pop Mart’s “The Monsters” line contributed over ¥3 billion (~23 % of revenue) in 2024 ^[source]. The company uses scarcity and hype to maintain growth: UK sales were temporarily paused after fights erupted over limited stock ^[source].

Because the Labubu craze is still unfolding, it is unclear whether it will culminate in a bubble or mature into a stable collector culture. Two 2025 developments hint at speculative excess:

1. Meme‑coin speculation – In June 2025 a community launched a LABUBU meme coin on the Solana blockchain. The coin’s price jumped more than 10× within days but then crashed over 91 %, revealing a pump‑and‑dump pattern ^[source]. The project had no official connection to Pop Mart, yet it used the brand’s popularity to lure retail investors ^[source]. The fiasco underscores how internet‑era speculation extends beyond physical toys into digital assets.
2. Investor frenzy & auctions – Pop Mart auctions and limited releases drive prices to extremes. For example, a Labubu plush sold for US$150 k at auction in 2025 ^[source]. Such headlines attract investors hoping to flip toys like sneakers or NFTs. Yet unlike the 1990s, digital communities quickly spread warnings about fakes and speculation; Pop Mart also encourages fan swaps to maintain goodwill ^[source].

Internet‑era differences

The Beanie Baby craze unfolded during the early days of the World Wide Web. In 1995 only 1.4 % of Americans were online ^[source]; most collectors discovered Beanies through word of mouth or print media. Nonetheless, Ty’s website and eBay were revolutionary at the time. eBay allowed peer‑to‑peer auctions, enabling price discovery and speculation. The network effect was limited, however, by dial‑up connections and a smaller user base.

The Labubu boom is a product of the fully networked social media era. TikTok, Xiaohongshu and Instagram provide instant, global reach. Celebrities and influencers can trigger demand spikes by posting a single photo. Fans film unboxing videos, customise displays and trade duplicate figures via digital platforms. Pop Mart leverages algorithmic recommendation by hosting live‑shopping events and surprise drops, blurring the line between commerce and entertainment ^[source]. The result is a viral loop: scarcity drives FOMO; FOMO fuels content creation; content attracts new collectors, sustaining demand. Secondary‑market prices now move in real time across Discord servers and resale apps. Additionally, the creation of a Labubu meme coin shows how digital culture can spawn derivative financial instruments, compounding both opportunity and risk.

Psychology of collecting, nostalgia commerce and identity

Both phenomena reveal common psychological drivers:

• Scarcity and FOMO – Human brains assign higher value to scarce objects. Ty exploited this by retiring animals, while Pop Mart uses blind boxes and limited runs. The result is FOMO (fear of missing out), prompting collectors to buy multiple units or line up for hours.
• Storytelling and emotional connection – The heart‑shaped tags on Beanie Babies told simple poems, enabling children to project personalities onto the toys ^[source]. Labubu’s backstory as a misunderstood little monster adds narrative depth ^[source]. Both cases show that consumers are buying stories and feelings as much as physical objects ^[source].
• Community and identity – Collectors often seek belonging. Mary Beth observed that Beanie conventions gave families something to share and bridged generations ^[source]. Labubu collectors express creativity through custom outfits and TikTok videos, and carrying a Labubu charm signals membership in a subculture. In both cases, identity formation—being a “Beanie Baby mom” or a “Labubu girl”—is as important as the object itself.
• Speculation and investment – The promise of future profits lures people into speculative bubbles. Beanie Baby investors paid thousands of dollars during the bubble’s peak, only to face collapse when supply overwhelmed demand ^[source]. Labubu’s secondary market and memecoin show similar speculative patterns, though the modern internet accelerates the boom‑and‑bust cycle.
• Nostalgia and youth culture – Beanie Babies tapped 1990s optimism and parental desire to share childhood delights with their children. Labubu appeals to Gen Z’s love of quirky, off‑beat aesthetics and the broader nostalgia economy that embraces vintage, kawaii and “creepy‑cute” icons. Both fads highlight how consumer culture commodifies nostalgia and childhood innocence for profit.

Which craze will endure?

Predicting longevity is precarious, but several factors suggest that Labubu may sustain cultural relevance longer than Beanie Babies:

• Evolving product ecosystem – Pop Mart continuously releases new Labubu series, collaborates with fashion brands and museums, and offers products across price tiers ^[source]. This adaptability keeps the IP fresh. In contrast, Ty’s attempt to sustain Beanie Babies through spin‑offs (Beanie Buddies, Beanie Kids) diluted the brand and failed to recapture the magic.
• Digital‑native community – Labubu’s fandom thrives on UGC and social media virality. Fans create content and culture around the toy, giving it a life beyond physical ownership. Such participatory culture can extend longevity by embedding the brand in daily digital rituals. The Beanie Baby community, though passionate, relied on print magazines and local conventions, which could not scale as fast.
• Global cross‑cultural appeal – Labubu resonates across China, Japan, Southeast Asia and is now entering Western fashion circles ^[source]. Its “ugly‑cute” aesthetic appeals to diverse tastes, and collaborations with global brands expand its reach. Beanie Babies enjoyed widespread popularity in North America but never achieved the same global cultural cachet.
• Artistic integrity – Kasing Lung retains creative control and continues to paint and exhibit his characters, adding artistic legitimacy ^[source]. This connection to the art world may protect Labubu from being dismissed as a mere fad. Ty Warner’s secrecy, while effective during the bubble, left the brand without a relatable creative narrative.

However, caution is warranted. Labubu’s boom may eventually plateau if overproduction or consumer fatigue sets in. The memecoin incident shows that speculation can undermine trust ^[source]. Pop Mart must balance scarcity with accessibility to avoid alienating fans.

Conclusion

The stories of Beanie Babies and Labubu illustrate how plush toys can become mirrors of their eras. The Beanie Baby craze captured late‑1990s America, when scarcity marketing, early e‑commerce and simple narratives created a speculative bubble that eventually burst. The Labubu phenomenon, born in China and nurtured through global social media, taps into Gen Z aesthetics, influencer culture and gamified purchasing. Both booms reveal how modern collectors seek not just objects but belonging, identity and stories. They also show how quickly speculative fervour can distort value.

Ultimately, the psychological drivers—scarcity, storytelling, community and investment—are timeless. What changes is the technology and cultural context that amplify them. Whether Labubu becomes a lasting cultural icon or another footnote in the history of collectible fads will depend on Pop Mart’s ability to evolve the brand while respecting the artistic core that made a jagged‑toothed elf resonate around the world.