Behind Labubu craze: China's rise as global IP powerhouse

HANGZHOU, June 21 (Xinhua) -- The shop floor of a pajama factory in Jiangsu Province, east China, had stood still for some time before recently springing back to life, its resurrection kickstarted by a fluffy toy.

"Labubu was not really my cup of tea, but now I think it is adorable," said Qiu Zunzun, general manager of Shuofeng daily necessities company in Suzhou, jokingly.

With its signature spiky toothed grin, Labubu has taken the world by storm. Noticing the craze, Qiu, spotted a gap in the market -- outfits for collectors to dress up their fluffy friends. So, he bought some toy samples and cloth, and by the end of May, the factory was rolling out dresses for the little imp.

"In less than 20 days we produced more than 80 kinds of doll's dresses, with a turnover of about 170,000 yuan (about 23,643 U.S. dollars)." Qiu estimated that with orders still growing, the monthly sales revenue could reach 1 million yuan.

The punky, cute, bunny-eared creature from China has inspired fans around the world to line up for a chance to own one. It is the latest case of Chinese IP globalization, which signals a shift in China's role from a manufacturing hub to a source of original cultural exports, and injects vitality into traditional industries.

CHINESE IP GOES ABROAD

Maraid Vintena in Sydney, Australia, lined up for an hour earlier this week to check the Pop Mart Labubu vending machine in her suburb. "There are four Pop Mart vending machines near my house," she said. "But most of the time, they're sold out. I check their website like ten times a day… I'm really addicted, but it's fun."

"As you get older, life is a little bit mundane. Something small, like a Labubu, a blind box, is like a little bit of excitement," Vintena said, explaining why she fell in love with the doll.

Amid the ever-growing Labubu craze, fashion brand Uniqlo has announced to partner with Pop Mart for their new collection The Monsters.

It is not the only Chinese IP which gained recognition around the world. From the hit video game "Black Myth: Wukong" last year that amassed 1.04 million concurrent players merely an hour after its debut, to the cinematic marvel of "Ne Zha 2," which has risen to the fifth spot on the worldwide box office chart, success of Chinese IP shows the rise of both cultural confidence and the empowerment of the country's industrial system, said Wang Ruotong, a researcher with the Tianjin Foreign Studies University.

Beyond the cultural sector, a number of Chinese brands have made inroads into the world-class IP categories, from the artificial intelligence (AI) to new energy vehicles and consumer technology.

Data from China's General Administration of Customs shows that China sustained its growth momentum on exports of new energy vehicles, with the volume of pure electric car exports topping 2 million units for the first time in 2024.

Chinese carmaker BYD is establishing factories in Thailand and Mexico, integrating Chinese aesthetics into automotive design.

In the AI domain, China has made holistic advancements in AI development, fostering a thriving AI industrial ecosystem. The country now hosts over 400 "little giant" firms -- specialized small and medium-sized enterprises that excel in niche AI markets, including AI innovator DeepSeek.

The vibrant growth of creative Chinese IPs has been driven by China's booming domestic cultural consumption and a solid industrial manufacturing foundation. As China shifts from mass production to smart, high-end manufacturing, the fusion of aesthetics and craftsmanship is driving the country's manufacturing sector to move up the global value chain.

In 2024, China's per-capita expenditure on education, culture, and entertainment registered 3,189 yuan, marking a 9.8-percent increase and accounting for 11.3 percent of total per-capita consumption spending, according to the National Bureau of Statistics. The continuously expanding cultural consumption market is emerging as a robust engine driving the development of China's IP industry.

INJECTING VITALITY INTO TRADITIONAL INDUSTRIES

At Yiwu International Trade Market, buyers carrying black plastic bags walk from one booth to another asking "do you have dresses for Labubu?" The global frenzy for this tiny creature has offered business opportunities for China's "world supermarket".

In Zhu Hui's store, one could not only find shirts, trousers and skirts for Labubu, but also accessories like glasses and hats. "Our dresses are sold at seven to 15 yuan a piece, while the accessories are one or two yuan each," she said.

Zhu's store opened only half a month ago, with number of orders increasing quickly. "At first we received orders for dozens or several hundred pieces a day, but now it is more than 10,000 pieces," she said. Zhu has about 50 workers in her factory, all of whom are working overtime recently.

Inspired by Labubu, other toy producers also tried to make their products more attractive.

Sun Lijuan is manager of the Yiwu Hongsheng Toys Factory, which exports dolls to more than 80 countries and regions in South America, Middle East, Central Asia, Europe and Africa.

"Our dolls can talk, sing and tell stories," she said. Recently they are applying AI technology to create products to meet different needs of consumers.

Sun told Xinhua that in recent years, they had witnessed the development of new technology which has empowered their business and helped them avoid homogeneous competition. Their toy factory was founded 13 years ago, but in recent years its turnover has been growing steadily.

"The greatest potential for future IP to go global lies in the continuous development of content and its deep integration with technology," said Wang Ruotong. "With the maturation of technologies such as AI and virtual reality, the presentation of IP is going towards immersive and interactive experience."

"China has a solid foundation in manufacturing," she continued. "Therefore, the popularity of Labubu this time brought a huge development opportunity to this industry. I'm sure that in the future there will be more Labubus emerging." ■