What Labubu at Harrods means for foreign brands: lessons from a Chinese toy powerhouse going global

When a ¥69 (£7.40/$9.50) toy becomes the talk of Harrods, sells out in seconds, and gains viral traction across London, Paris, and Bangkok - it’s a good idea to pay attention. That toy is Labubu, a mischievous character from Chinese toymaker POP MART. Its recent pop-up at the luxury department store isn’t just a win for collectible figurines, it’s another signal that Chinese brands are stepping confidently onto the global stage -and succeeding.

For foreign brands eyeing China, or simply watching the evolution of consumer trends worldwide, the Labubu story offers some powerful lessons and reflections. Here's what this phenomenon tells us - and why it matters.

1. Chinese brands are now influencing tastes outside of China

POP MART’s rise from niche Chinese toy brand to a coveted label in European luxury stores reveals a broader shift: Chinese consumer brands are no longer just looking inward or imitating the West - they are innovating, exporting, and building emotionally resonant IP that travels across borders.

Whether it's smartphones, cars, fashion, food, or toys, China’s new generation of brands is shaping global consumer desire with original storytelling, design innovation, and increasingly sophisticated brand building.

For foreign brands, this is a wake-up call: your next global competitor may not be from Paris or New York — but from Shenzhen or Shanghai.

2. Emotion > Product: the rise of "emotional value" in consumer choices

Labubu isn’t just cute. It’s comforting. It taps into a consumer need for emotional escape, nostalgia, and self-expression. In an anxious, fast-paced world, people are buying feelings - and Labubu delivers them in spades.

As categories become increasingly commoditised, brands should be asking themselves are we selling just a product, or are we offering emotional value? Can our brand be a source of joy, identity, or even therapy? Especially in younger markets, this shift is changing how people connect with brands.

3. Localisation matters more than ever

POP MART’s international strategy wasn’t “copy-paste” from the mainland. Instead, they took time to understand each market. From launching a Merlion-themed Labubu in Singapore to tailoring pop-up experiences in Harrods, they’ve made their global expansion feel local.

The lesson? One-size-fits-all doesn’t work anymore. For foreign companies entering China, success comes not from brand awareness alone, but from cultural resonance. For those already in the market, Labubu is a reminder that localization isn't a box to tick - it's the growth strategy itself.

4. Collaboration is the new luxury

POP MART has worked with fashion insiders, luxury buyers, and influencers, from Lisa of BLACKPINK to Dover Street Market. Labubu’s rise wasn’t just organic, it was engineered through smart collaborations that blurred the line between toy and fashion accessory.

Status is no longer about price, but cultural currency. When a small figurine is styled with Hermès, it gains symbolic weight, and so do the brands that collaborate with it. Brands need to think less in terms of verticals, and more in terms of cultural moments and crossover appeal.

5. Scarcity + story = social capital

Labubu isn’t just popular - it’s scarce. The “blind box” model, the limited editions, the creator signings - these drive urgency, collectability, and social capital. Having a rare Labubu is increasingly like a limited sneaker drop or a vintage watch.

But at ¥69, it illustratees that exclusivity doesn’t always have to come with high prices. Sometimes it’s about the experience of access - storytelling, surprise, and participation.

The big picture: China isn’t just a market, it’s a training ground and increasingly a cultural force.

For years, foreign brands looked at China as a lucrative market to crack. Now, China is also an exporter of culture, creativity, and consumer influence. From Labubu to Luckin Coffee, Chinese brands are shaping what people buy, how they buy it, and what they expect from the brands they love.

For foreign companies, the question is no longer just how do we sell in China? but also: How do we compete with - or learn from - China’s next wave of global brands?

Labubu is just one small, mischievous character, but it represents something much bigger: a new era of brand influence, one that’s playful, emotional, borderless - and unmistakably Chinese.