Popmart - a prime example of the success of the "cute economy ".
"Cute" is probably the first word that comes to mind when people see Labubu – the monster from the Monsters line of the trendy toy retailer Popmart. But it's not just about cuteness; at an auction in June, the 1.3-meter-tall, blue Labubu statue sold for over $150,000, equivalent to 4 billion Vietnamese dong. This record-breaking toy auction not only demonstrates a success in terms of sales but also positions Labubu as a valuable art asset and an unconventional investment tool.
Although these products are toys, they are primarily aimed at adult customers – those who are attracted by cuteness, want to relive their childhood , and seek solace. Labubu, along with many other Popmart products, has contributed to creating an economy known as the "cute economy."
Labubu's popularity has driven the stock price of its parent company, the trendy toy retailer Popmart, up more than 180% this year. Popmart's market value is now $46 billion, making it the world's third most valuable intellectual property company, after Walt Disney and Nintendo. Popmart's success is due to a clever combination of creating exclusive intellectual property, generating scarcity, leveraging social media, and incorporating a bit of luck – the blind draw – into the purchasing process. More recently, high-end fashion brands have also been harnessing the power of cuteness to win over a new generation of customers.
Labubu, along with many other Popmart products, has contributed to creating an economy known as the "cute economy."
The race among Chinese toy companies after the Labubu craze.
The success of toy retailer Popmart has spurred many other Chinese toy companies to take action. The race has become hotter than ever, with a plethora of new toy products being launched, marketing campaigns intensified, and companies capitalizing on the booming cute economy.
Independent artist Runyu first created the art toy character Akidoo, whom he describes as a shy, introverted boy, in a makeshift apartment. Initially planning to move to Thailand, Runyu returned to China to be closer to his country's robust art toy supply chain. The 24-year-old artist believes the Labubu magic can repeat itself and hopes Akidoo will be the next name to follow suit.
"I created Akidoo while studying in Singapore and had planned to move to Thailand to continue developing the product," said Runyu, a toy designer. "But I decided to come home because designing and manufacturing in China is very convenient."
The art toy company Siguworks, whose best-selling intellectual property is AngryAimee – a character with a perpetually sulky face and cat-ear-like hair – also sets Labubu as a target to strive for and surpass.
Zhou Junyu, co-founder of Siguworks, shared: “Our goal is to surpass Popmart, at least in terms of intellectual property. Although our scale is not as large as theirs, I think we can truly compete at the same level in terms of innovation and product quality.”
In July, Siguworks launched a partnership with Alibaba-owned food delivery giant Ele.me and popular bubble tea brand Molly Tea. Experts believe that the combination of China's supply chain dominance, speed of market launch, and data-driven platforms gives the country a strong advantage in creating the next global toy craze. However, not everyone is rooting for this race.
Agan, a toy designer, commented: "Most of the so-called art toys on the market today are essentially just toy models. For me, a truly intellectual toy product needs to have content or a core. It must have something it wants to express. It must have a deliberate visual style, uniqueness, and meticulous design."
Will the world's next artistic toy emerge from a cramped studio or a luxurious design room? Only time will tell which shy doll or adorable monster will capture the hearts and wallets of consumers worldwide.
Sanrio, the Japanese company that owns Hello Kitty, earns nearly $4 billion in revenue from Hello Kitty each year.
The sustainability of the "cute economy" through the Hello Kitty icon.
It's not entirely accurate to assume that the "cute economy" is merely a temporary phenomenon. There's an icon that, despite being over 50 years old, retains its enduring appeal and economic power, generating estimated revenue of $80 billion for its parent company. That icon is Hello Kitty.
Hello Kitty, the cat with her signature red bow and hobbies of traveling, reading, and baking, celebrated her 50th birthday last year. Since the 1970s, Hello Kitty has remained a global phenomenon, beloved by adults, children, and celebrities alike. She appears on a wide range of products, from clothing and stationery to cosmetics, as well as in animated films, comics, video games, and books. She is ranked as the second-highest-grossing media brand in the world after Pokémon. According to The Economist, Sanrio, the Japanese company that owns Hello Kitty, earns nearly $4 billion in revenue from Hello Kitty each year. The character is estimated to have brought its creator $80 billion over the past 50 years.
Yuko Akiyama, Global Brand Management Director at Sanrio, shared: “Every year, 50,000 Hello Kitty products are manufactured worldwide and sold in 130 countries. It's safe to say that Hello Kitty is famous in every corner of the world.”
For decades since its creation, Hello Kitty has served as an ambassador for UNICEF, a special envoy for the Japanese Ministry of Foreign Affairs, and the face of themed cafes, restaurants, and theme parks worldwide.
Source: https://vtv.vn/su-bung-no-kinh-te-de-thuong-100251029115256048.htm
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