
The Labubu Mystery Box Revolution: What Tech Startups Can Learn from a $22.7B Toy Craze | The Current Thing #7
How is Labubu reshaping UGC and gamification? What can tech startups learn from Pop Mart? Find the answers in this issue of The Current Thing.

See that? It’s not the growth chart of your dreams. It’s Google Trend’s Interest Over Time graph for “Labubu”. Labubu dolls are taking the internet by storm and driving incredible growth for their parent company, Pop Mart.
With over 2 million monthly searches and resale listings growing by 80%, these peculiar dolls are a treasure trove of marketing lessons. They can also be a blueprint for building irresistible digital products.
Let's dive into why millions of people are obsessed with these mystery boxes and how tech startups can harness the same psychological triggers.
The Labubu Phenomenon: More Than Just Toys
Labubu dolls have cracked the code on modern consumer behavior through a deceptively simple concept: you never know what you're getting until you open the box. Each figure, priced between $22 and $500+, comes sealed in packaging that hides the specific design inside. This "blind box" approach has created a perfect storm of compulsive buying, social trading, and viral content creation.
Blind boxes aren’t original to Labubu - or PopMart. They’ve been a staple of Japanese consumer culture for decades, originally distributed through Gashapon (ガシャポン) vending machines. Previous blind box phenomena have included Sonny Angels, as well as figurine lines from top brands such as Sanrio. But Labubu is something else.
In April of last year, K-pop superstar Lisa was seen carrying a Labubu doll and global demand exploded overnight. Secondary markets like Whatnot watched their seller counts double monthly, with limited editions selling out in seconds.
The numbers tell the story. TikTok's #Plushies hashtag has racked up 8 billion views, while StockX has seen 300% monthly GMV growth in the collectibles category. But here's the kicker: rare editions are reselling for 500% markups. This isn't just about toys—it's about tapping into fundamental human psychology around scarcity, surprise, and social status.
The Psychology of Labubu
Research reveals that emotional attachment to collectible items allows brands to charge 40% price premiums. Labubu succeeds because it transforms simple toys into "emotional trophies" that represent self-expression and the thrill of chance.
The mystery box model exploits several powerful psychological levers. Unpredictability triggers dopamine-driven reward systems—the same mechanism that makes slot machines addictive. The designer toy market is growing 26% year-over-year, compared to just 3.7% for traditional toys, precisely because of this element of surprise.
Scarcity creates fear of missing out (FOMO), driving collectors to purchase multiple boxes hoping to find rare variants. Social proof amplifies this through community status signaling—owning a rare Labubu becomes a badge of honor in collector circles. The completionist psychology kicks in as people feel compelled to "catch them all," leading to 120% search surges for specific variants.
How Startups Can Apply Mystery Box Mechanics
Gamified app experiences can integrate mystery boxes directly into user journeys. Instead of traditional rewards, apps can offer randomized digital assets, benefits or exclusive content for engagement milestones. Pop Mart's own app brilliantly blends physical collectibles with digital unlocks, boosting both retention and cross-selling opportunities.
Data-driven personalization takes this further by using AI to tailor mystery box odds based on user behavior. Imagine offering higher rare-item probability for top spenders, or using ethnographic research to inform theme design that resonates with specific user subcultures.
One of the forces behind Labubu’s virality is the incredible volume of user-generated content that shows customers unboxing their Labubus. Unboxing becomes a shareable moment of discovery. Likewise, you can use strategically placed share buttons and social features to trigger automated word of mouth - or as we usually call it, a “virality loop”.
Limitations & Controversy
The mystery box model can be understood as a lite form of gambling. Mystery box customers pay a set price for a valuable result. If the result is satisfactory, they’ll want to buy again, in hopes of replicating their good luck. If the result is underwhelming, they’ll want to buy again too, in hopes of getting a better result the next time.
One could argue that any Labubu a customer gets will bring some baseline satisfaction. And the element of surprise is simply an extra that makes the unboxing experience more impactful.
On the other hand, the formula of “equal input, variable outcome” isn’t new at all. Especially in digital products. Nir Eyal’s Hook Model has been the blueprint for mobile app development for over a decade.

On the other hand, the mystery box approach may be great for consumer apps. But we wouldn’t recommend adding surprise and uncertainty to a B2B platform, where certainty, transparency, and trustworthiness are essential.
The Bigger Picture
Labubu's $22.7 billion toy craze demonstrates that mystery boxes aren't just a fad—they're a fundamental shift in how consumers want to engage with products. For tech startups, digital iterations offer limitless inventory possibilities, built-in community virality, and premium monetization opportunities. It’s strategically dosed gamification.
The lesson is clear: in an attention economy where consumers are overwhelmed by choices, sometimes the most powerful strategy is to take choice away and replace it with surprise, scarcity, and social connection. The brands that master this psychology won't just capture market share—they'll create entire ecosystems of engaged, passionate communities.
The mystery box revolution is just getting started. The question isn't whether this model will expand beyond toys, but which companies will be first to unlock its full potential in the digital realm.
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