What Brands Can Learn from the Labubu Fad
Decoding the Labubu phenomenon, the “Little Treat” Culture, and the gamble-fication of everything
Every generation deserves its own Cabbage Patch Kids and Troll dolls, and Gen Z has seemingly embraced the “ugly cute” Labubu as their collectible of choice. This mischievous, wide-grinning little monster, originally created by Hong Kong-based artist Kasing Lung, was made into a series of plush bag charms by Chinese toy company Pop Mart in 2019. They are sold in limited-edition blind boxes, meaning buyers never know which specific design they’ll get until they open the box. In other words, every Labubu unboxing guarantees a quirky cute charm, but the surprise is half the fun.
Over the course of 2024, Labubu evolved from a niche collectible into a full-blown cultural fad, driven by TikTok virality, celebrity endorsements, and street style appeal. Over 1.3 million TikTok videos under the #Labubu hashtag, usually of the unboxing type, have flooded the social feeds, capturing audiences with the thrill of surprise and amplifying its reach. Pop stars like Lisa, Dua Lipa, and Rihanna cemented the toy’s status as a must-have “it” accessory.
In addition, Pop Mart is savvily leveraging the “drop” strategy usually deployed by streetwear brands to market Labubu, including launching high-profile collabs like Coca-Cola and “Exciting Macaron” that routinely sold out, sparking long lines at retailers like Urban Outfitters and even mall fights among loyal fans, and creating a booming resale market on platforms like StockX and eBay.
There’s certainly some 90s nostalgia at play for Millennials as well. As one collector told the BBC, collecting Labubu dolls provides “real escapism for millennials as it’s like reverting back to your youth with these toys and collectables.”
In short, Labubu has transformed from a cute oddity into a viral collectible craze. Its U.S. rise was driven by the perfect storm of TikTok hype, celebrity influence, 90s nostalgia, and, most importantly the thrill of the chase — a recipe that not only sells toys, but also reveals deeper consumer trends at play.
Welcome To The “Little Treat” Era Of Indulgence
The Labubu phenomenon ties into a broader consumer mindset often dubbed the “little treat” culture. This idea of indulging in small, affordable luxuries as a form of joy and self-care, whether it’s grabbing a fancy Starbucks drink, a scented candle, or a cute collectible to brighten your day, are particularly appealing to Gen Z and Millennial consumers, partly as a defense mechanism against the increasingly chaotic world that we now live in.
At a time when recession indicators are everywhere, of course people are forgoing extravagant splurges for these accessible little treats. This is especially true for younger consumers that are feeling the pressures of economic and social uncertainties. Many young adults feel long-term goals like buying a house or retiring comfortably are increasingly out of reach, so they focus on short-term gratification.
This is an extension of the “Impulse Economy” that we covered in our Outlook 2025 report. After all, when the future feels uncertain, buying a $20 treat (aka the typical cost of a Labubu blind box) that offers a much-needed dopamine hit seems like a no-brainer in these trying times. A recent McKinsey study underscores this generational shift: 59% of Gen Z consumers plan to splurge on little treats like beauty products and snacks in the coming months, compared to only 35% of Gen X and 20% of Boomers. Millennials are close behind Gen Z at 53%.
This propensity for tiny indulgences is reshaping how brands market to younger consumers. For example, beauty brands are infusing products with dessert and candy themes to tap into that sense of playful indulgence. Glossier launched a Black Cherry makeup collection complete with cherry emoji visuals and saw sales shoot 115% above projections in two weeks, effectively turning a makeup purchase into a fun treat. Similarly, Dove went a step further by partnering with cookie brand Crumbl to create cookie-scented body washes, which went viral on TikTok and drove massive sales.
Even luxury fashion houses are embracing “little treats”: Prada, Burberry and Louis Vuitton have opened pop-up restaurants and cafes where people can enjoy a fancy coffee or cocktail in a chic setting for a small taste of a high-end brand without damaging the wallets. It’s a clever twist on the classic “lipstick effect,” where consumers buy affordable luxuries in downturns instead of big ones. All of this signals that the impulse economy is in full swing. Brands across food, beauty, and retail are repositioning small purchases as acts of emotional self-care, not mindless spending.
Importantly, brands should also acknowledge the evolving definition of a “treat” — not every reward needs to be transactional. “Little treat” culture isn’t just about indulgence — it’s about intentional self-care within your means. Whether it’s a biweekly manicure or simply a walk in the park, these tiny pleasures can be meaningfully uplifting. Therefore, brands that can create joyful, low-lift experiences, even around simple or everyday items and experiences, stand to attract and deepen consumer loyalty.
Gamble-fication: Everything Is a Bet
Part of Labubu’s addictive appeal is its blind box format — essentially a real-world loot box. Buying a Labubu is a bit like playing a mini slot machine: you pay first, then reveal your prize. Psychologically, this taps into the same excitement as gambling or opening a trading card pack hoping for a rare. The uncertainty and anticipation are by design, and Labubu unboxing can feel like scratching off an accessible lottery ticket. It’s the “gacha” model from Japanese arcades and trading card companies, now repackaged for a global audience of TikTok shoppers.
In short, the line between gaming and gambling has never been thinner. Labubu and other blind-box collectibles apply these game design principles to physical retail. Each new series has “common” designs and one or two “secret rares.” Because you can’t buy the rare outright (short of finding it on eBay later), fans are incentivized to buy multiple blind boxes, effectively chasing the rare in a manner akin to pulling the lever on a slot machine repeatedly.
This gamble-fication of everything extends well beyond toys and games. Look at the rise of legal sports betting in the U.S. in just the past few years. Since a federal ban was lifted in 2018, sports wagering has become a mainstream hobby, heavily marketed during sports broadcasts and integrated into media. As of early 2025, 38 states plus D.C. have legalized sports betting, and the amount of money Americans are wagering is staggering. In 2024 alone, U.S. bettors placed nearly $150 billion in legal sports bets, generating a record $13.7 billion in revenues for sportsbooks.
More importantly, the mindset of gambling is leaking into categories far beyond sports betting, as brands and platforms increasingly look to gamify everyday consumer interactions and turn them into something resembling a bet — where risk, reward, and uncertainty are part of the appeal. For example, major movie theaters are hosting regular mystery screenings, while brands like Burger King introduced app-based games with prizes, badges, or randomized coupons that reward regular engagement. Netflix has experimented with “Play Something” randomization features, leaving your next watch up to chance.
This cultural shift is driven in part by the normalization of gambling through mainstream sports betting apps, but it’s being amplified by the rise of crypto-based betting platforms, where users can place decentralized wagers on nearly anything — from the presidential election to the papal conclave. Even the revamped MoviePass wants movie buffs to bet on box office results and use their on-platform earnings to exchange for movie tickets.
The crypto betting boom makes the online world feel like one giant casino, with meme coins and NFTs acting as lottery tickets for millennials and Gen Z. Platforms like Stake.com, often promoted by Twitch streamers and even celebrities, have surged in popularity, allowing users to wager with Bitcoin or stablecoins on digital slots and games. Popular betting platform Polymarket experienced significant growth in 2024, with trading volume surpassing $9 billion and active traders reaching 314,500 in December.
As this betting mindset becomes culturally ambient, it’s rewiring how younger consumers especially perceive uncertainty, reward, and control. For brands, this raises big questions: How do you engage an audience that increasingly views purchases, predictions, and participation as games of chance? Labubu’s runaway success is emblematic of a cultural moment where many forms of consumption are intentionally blurring into games of chance.
While introducing a bit of chance or competition can turn passive shoppers into active participants, the key is to keep it fun and fair. Brands need to ensure that even the “losing” outcomes in a brand game have some value, just as every Labubu blind box has a cute toy, even if it’s not a rare one.
What It Means for Brands
For brands and marketers, the success of Labubu and the rise of little-treat, gamble-infused consumer behavior carry several clear lessons. In a landscape where attention is hard to earn, creating an experience around your product can make all the difference.
Labubu’s rise was a masterclass in building cultural relevance through collectibility. Scarcity and novelty (limited releases, secret items) fuel desire, but it’s the community engagement that sustains it. Brands can create their own “viral collectible” moment by fostering fandoms — think limited drops, special editions, or collaborations that get people sharing and trading. The goal is to make your product more than a commodity; it should feel like part of a lifestyle or club that customers want to join.
Looking ahead, the notion of a “collectible moment” may expand with technology: we might see brands blending physical and digital collectibles (think AR treasures or NFT tie-ins) to create even more immersive hunts. The ethos of the little treat will likely persist as economic uncertainty lingers. On the flip side, the saturation of bet-like brand interactions could lead to fatigue if every purchase in life starts to feel like a gamble. To avoid backlash, a gentler approach will fare better in the long run over coercive tactics.
Ultimately, the craze for Labubu bag charms, the rise of little-treat culture, and the gamble-fication of consumer experiences all point to one thing: people are seeking moments of surprise and delight in their consumption. Brands that can provide those moments will flourish in 2025 and beyond.
