Labubu. What can this cute ugly toy teach us about modern consumerism in a lipstick economy?

When the economy is uncertain and consumer priorities shift, the rise of unlikely cultural icons can tell us more than any trend report. Enter Labubu; a mischievous, wide-grinned, overpriced designer toy character - and I recently bought three.

Labubu isn’t your standard mainstream character. Created by Hong Kong artist Kasing Lung and available through collectible art toy shop POP MART (and some black-market street vendors) for around AUD $80, with its oddball proportions, expressive features and cult following, it’s part of the booming designer toy scene - a niche world of vinyl collectibles. 

Labubu’s runaway success offers a window into deeper insights about consumer psychology and emotional spending, in fact, Labubu may be one of the most powerful - if unassuming, examples of the lipstick economy in action. 

Labubu - the newest designer toy.

The lipstick economy: a quick primer

The lipstick effect refers to a well-documented economic phenomenon where consumers, during times of financial stress, still purchase small and affordable luxuries rather than big-ticket items. Coined during the early 2000s and revisited during the 2008 global financial crisis (and again during COVID-19), it explains why lipstick sales often rise during recessions. People still seek emotional rewards during hard times, but at a lower cost. Plus, lipstick brightens your face and makes everyone feel better.

Today, this idea has broadened beyond cosmetics to include anything that delivers small joy or self-expression without breaking the bank. Think $60 candles, niche skincare, indie clothing brands made from 100% merino wool and yes, designer vinyl figures like Labubu.

Why Labubu hits the sweet spot

So why has Labubu captured hearts and wallets in such a big way? 

It’s a low-stakes but luxury item. Most Labubu toys retail between $80-$100, making them affordable splurges. In economic downturns, consumers may avoid large discretionary spending but still want a "treat" for themselves or their kids - a concept central to the lipstick effect. Labubu isn’t a functional necessity, but it provides emotional value, and that’s the currency that matters right now, especially when holidays are out of reach.

It’s personal and emotional. Each version of Labubu tells a story; from forest-dwelling elf to pirate to glow-in-the-dark ghost. Fans connect emotionally with the character’s charm, often seeing parts of themselves reflected in its quirky persona. This personalisation and storytelling turns a toy into a meaningful purchase.

In PR and branding, this highlights the power of emotional storytelling. The brands winning today aren't selling products, they’re selling identity and belonging.

It fuels anticipation and community. Labubu drops are often limited-edition, blind-boxed, and released via exclusive channels to create FOMO. Social media buzz, trade groups, and fan content fuel the community. The brand really became mainstream when Rihanna was spotted with one on her bag - no brand endorsement, just a candid moment with a bag charm she thought was cute.

This is critical for PR professionals. In a crowded media landscape, products that build anticipation and community engagement outperform those that rely solely on traditional push marketing.

From toys to trends: broader lessons for brands and PR

This is why I spent four hours on a city adventure, chasing down a Labubu at every POP MART store in Sydney with my two girls. Because Labubu is more than just a cute face, it’s also a case study in emotional marketing and modern consumer dynamics. I don’t normally buy into toy trends, my kids certainly didn’t suggest it, but in this instance the fun was well worth the price tag.

Here are my five key takeaways for anyone interested in marketing, brand, and PR and how to navigate promotion in a conservative economy:

1. Emotional value = functional value

In uncertain times, people spend on what makes them feel good, not necessarily what’s most logical. Emotional comfort is a currency. Brands should lean into campaigns that speak to resilience, comfort, nostalgia, and joy. My purchase is a classic example of this. I would never normally spend that kind of money on a toy, but we aren’t going away on holidays, we are all working hard and I wanted my kids to be rewarded and feel cool. That’s how I got my reward. 

Think: “How does your product help people feel better - not just do more?”

2. Create collectibility

Whether you sell coffee, jewellery, or financial advice, consider how your brand can deliver joy in bite-sized moments. Micro-luxuries are thriving, and consumers are willing to invest in them if they feel exclusive and special.

3. Visual identity is power

Labubu’s visual appeal is central to its success. In an era of infinite scroll, a distinct and instantly recognisable aesthetic breaks through the noise. Every business should invest in bold, consistent branding that photographs well, is relatable and tells a story.

4. Nurture community, not just customers

Labubu thrives because of its community and fandom, not just buyers. People share photos, swap toys, and attend fan meetups. That level of engagement builds brand equity faster than any ad campaign.

PR pros should look at ways to turn consumers into advocates: think co-created content, UGC campaigns, fan shoutouts, and community-led storytelling and endorsement. 

5. Own the narrative, not just the product

Labubu has been able to supersede its status as a toy, into a full-blown universe. The character has a backstory and a mythology. Brands that succeed in good and bad economies tap into myth-making. They make people feel like they’re part of something.

Amanda Lacey

Interested in PR, brand and consumer culture? Subscribe to our newsletter.