RIYADH: A surge in emotionally driven micro-purchases is reshaping retail trends in Ƶ, with collectibles like Pop Mart’s Labubu dolls emerging as cultural icons and commercial successes amid the Kingdom’s Vision 2030 transformation.
The global phenomenon of Labubu — a mischievous character created by artist Kasing Lung and popularized by Hong Kong-listed Pop Mart — has taken hold in the Kingdom and across the Middle East.
These SR300 ($80) to SR400 dolls, distributed through “Blind Box” formats that conceal which design a buyer will get, feed on psychological urgency and scarcity — elements that have translated into real profits and fast-rising cultural capital.
Once niche, these figures are now clipped to luxury handbags and styled as part of fashion-forward outfits, becoming status accessories across demographics.
Driven by social media trends and psychological triggers like fear of missing out, demand for Labubu dolls and other limited-edition collectibles is reshaping how young, tech-savvy consumers engage with retail.
Pop Mart Chairman and CEO Wang Ning. (Supplied)
Business Boom
In 2024, Pop Mart reported revenue of 13.03 billion Chinese yuan ($1.81 billion), a 106.9 percent jump from the previous year, propelled largely by Labubu sales.
In the company’s latest financial report, Pop Mart Chairman and CEO Wang Ning said: “The global phenomenon of Labubu last year propelled the revenue of The Monsters beyond 3 billion yuan, while SKULLPANDA’s ‘Temperature’ series emerged as the most successful designer toy collection in history.”
This explosive growth wasn’t by chance. Pop Mart’s global expansion strategy, coupled with its direct-to-consumer model and experiential retail approach, played a crucial role. “The year 2024 has also been dubbed the ‘Plush Year,’” Ning said.
He added: “For the first time, we have categorized our retail business into four major segments: figure toys, plush, MEGA, and other IP-related products. Among them, revenue from plush increased by 1,289 percent year-on-year, accounting for 21.7 percent of our total revenue and delivering the breakout hit — and biggest surprise — of the year.”
Today, Pop Mart boasts more than 13 IP brands generating over 100 million yuan each annually, with flagship stores in cultural hubs such as London and Paris.
Driven by social media trends and psychological triggers like fear of missing out, demand for Labubu dolls and other limited-edition collectibles is reshaping how young, tech-savvy consumers engage with retail. (Getty Images)
Emotional spending
Behind the numbers lies a powerful behavioral-finance story. Vijay Valecha, chief investment officer at Century Financial, says Pop Mart’s success reflects the rise of emotional spending in an era of uncertainty.
“Spending on rare collectibles is propelled by a combination of emotional spending, fear of missing out, societal influences, and various cognitive biases rooted in the principles of behavioral finance,” Valecha told Arab News.
He noted that the timing couldn’t be more favorable. “These small, impulsive purchases are fueled by feelings of FOMO, exclusivity, and the thrill of surprise,” he added, explaining why even modest toys can command premium prices.
Echoing this sentiment, Pop Mart’s use of the Blind Box format — where buyers don’t know which design they’ll receive — adds a layer of gamification, increasing emotional engagement.
“Saudi and Gulf consumers are also following the emotional micro-spending trends seen in Asia. This can be evidenced by the rapid adoption of the viral Labubu collectible doll in the region,” Valecha said.
Vijay_Valecha, chief investment officer of Century Financial. (Supplied)
Local retail shift
This wave of consumer psychology has gained serious traction across the Gulf. In Ƶ, Labubu dolls are sold on platforms such as Noon.com and Amazon.sa, priced between SR99 and SR399.
Offline, events such as Riyadh Season have featured Labubu-themed installations, elevating the character to a pop-cultural symbol.
Valecha linked this demand directly to broader national trends. “This evolving trend is entirely consistent with Ƶ’s Vision 2030, which seeks to strengthen both its cultural and entertainment industries while advancing digital innovation,” he said.
“With a growing population of tech-savvy youth and one of the highest smartphone penetration rates globally, the Kingdom provides fertile ground for trends like viral collectibles to flourish and evolve into full-scale economic drivers.”
A similar narrative is playing out in the UAE, where platforms like Careem deliver Labubu dolls in under 20 minutes for 305 dirhams ($83).
“In the UAE, too, Labubu dolls have taken the country by storm, with their rising demand making them more challenging to find in stores. The dolls are available in physical stores located in Bluewaters, Dubai Mall, Mall of the Emirates, and Madkicks,” Valecha added, emphasizing the region’s appetite for rapid, experience-based consumption.
According to Pop Mart’s report, the company established Pop Mart Middle East Trading L.L.C. in the UAE in August 2024, with a registered capital of 2.5 million dirhams.
Fad or future?
Still, questions linger about the sustainability of such emotionally charged trends.
“The popularity of Labubu dolls is primarily driven by social media hype from major influencers and psychological behaviors like herd mentality, FOMO, and instant gratification, which outweigh broader economic factors,” Valecha said.
And while the model has so far defied economic slowdowns, he cautioned against over-optimism. “The viral collectible boom has been building momentum long before these headwinds materialized. While economic caution may affect some buyers, popularity can be linked to cultural and emotional drivers rather than a defensive budget strategy.”
Retailers in the Kingdom are responding rapidly. Riyadh’s Center Mall has hosted Labubu-themed pop-ups, while SGFR Riyadh regularly restocks new collections.
Platforms like Desertcart and other e-commerce players are helping local consumers access global Labubu releases with ease.
More importantly, local brands are beginning to mirror Pop Mart’s playbook — timed drops, influencer-driven buzz, and exclusivity — all aimed at converting one-time buyers into loyal fans. The convergence of commerce, culture, and emotion is redefining how value is created in modern retail.
Beyond the collectible
The Labubu effect ultimately demonstrates how intangible triggers — nostalgia, community, and emotional gratification — can drive tangible economic results. Pop Mart’s multi-pronged strategy of IP storytelling, retail innovation, and psychological engagement positions it as a textbook case of emotional commerce.
“We firmly believe in IP’s transcendent power to overcome linguistic barriers and transcend temporal cycles,” Wang said. “These efforts have rapidly enhanced the global recognition of the Pop Mart brand and our IPs.”
Whether its business model can withstand broader economic pressures remains to be seen. But in a region where culture is becoming commerce, the Labubu phenomenon proves that even the smallest products can yield the biggest stories.
