After Hello Kitty, is Labubu the next global super IP?
On May 20, news from the Wind Trading Platform reported that analysts Kevin Yin and Yibo Wu from J.P. Morgan released a research report stating that Labubu and Hello Kitty are very similar in character style and business model. Labubu is currently rising rapidly and has even started to surpass Hello Kitty in search popularity.
J.P. Morgan expects that the sales of THE MONSTERS series, to which Labubu belongs, could rise from 3 billion yuan in 2024 to 14 billion yuan in 2027, indicating it truly has the opportunity to become a super IP.
Labubu VS Hello Kitty
The report mentioned that Pop Mart's Labubu series and Sanrio's Hello Kitty series are quite similar in many ways.
In terms of popularity, data from Google Trends shows that Labubu's search interest has exploded in the past year, surpassing Hello Kitty by May 2025. This indicates that Labubu's global brand influence is rapidly rising, particularly in regions like Southeast Asia (1 to 4 times the search interest of Hello Kitty), Mexico (2 times), and Spain (1.4 times).
The report also specifically mentioned that search popularity is a direct reflection of consumer interest and often serves as a barometer for future sales trends.
From the perspective of IP design, Hello Kitty follows a simple and cute route with straightforward lines and soft colors that easily evoke emotional resonance; whereas Labubu is quite different, adopting a playful and quirky style with designs like big eyes, sharp teeth, and fluffy tails, making it very popular among collectors who prefer unique styles.
From a commercialization perspective, Hello Kitty's approach is mature, primarily relying on licensing to various brands to create different products, which not only generates revenue but also broadens brand influence.
Labubu tends to operate independently and continuously innovate. Pop Mart introduced it to the market through blind boxes, quickly attracting a large fan base. Meanwhile, Labubu has launched plush toys, stationery, and other derivatives, collaborating with many big brands and expanding its product line. This model allows Pop Mart to better control product quality and brand positioning.
In terms of market performance, Hello Kitty has achieved total sales of $8.45 billion since its launch, while Labubu, which only launched in 2019, has already reached sales of 3 billion yuan by 2024.
More critically, Labubu's growth rate has already surpassed that of Hello Kitty in its early years, indicating a significant development potential.
Why is Labubu going to be the next super IP?
The report summarizes several key reasons for Labubu's rise to fame:
Innovative products
Labubu uses a special vinyl plush material, which feels soft and unique, distinctly different from most IP images on the market.
Celebrity endorsements
Many celebrities have fallen for Labubu, sharing their Labubu plush toys on social media, which has significantly increased its influence.
Marketing is very playful
In July last year, Pop Mart collaborated with the Tourism Authority of Thailand for a marketing event, featuring a life-sized Labubu parade in Bangkok, attracting a large number of visits and shares, causing a social media frenzy.
Pop Mart is strongly supporting
Not only is there a live performance of Labubu arranged in Pop Mart's park in Beijing, but the first offline store has also been opened in Thailand, fully promoting this IP.
Based on search data, user interviews, social media observations, and market research, the report predicts that the annual sales of THE MONSTERS series, where Labubu resides, could reach 14 billion yuan.
If the market develops smoothly, by 2027 Labubu's popularity may even catch up to Hello Kitty (currently, its search interest is already 70% of Hello Kitty's, nearly 100% in April, and even close to 200% in May).
Future growth engine: new IPs and AI toys
J.P. Morgan stated that besides the existing IPs, Pop Mart may see new growth points in the next 1 to 3 years.
They predict that by 2027, the THE MONSTERS series, to which LABUBU belongs, will account for 27% of the group's total annual revenue. Molly and Crybaby are expected to follow closely, becoming the second and third largest IPs, each with annual sales exceeding 5 billion.
In terms of products, traditional blind boxes remain the mainstay, but their sales share is expected to drop from 53% in 2024 to 43% in 2027. Other categories are expected to rise, such as plush toys increasing from 22% to 27%, MEGA large dolls from 13% to 14%, and other products from 12% to 16%.
Additionally, although Pop Mart has not officially announced its AI strategy, analysts believe AI toys will be a new trend in the Chinese toy industry, and Pop Mart has the opportunity to become a leader. AI can bring stronger interaction and personalized experiences, such as voice recognition, personalized learning, and augmented reality features.