It’s not just Labubu dolls. Chinese brands are booming

LABUBU dolls are hard to come by. Even at the giant flagship store of their maker, Pop Mart, in Shanghai, throngs of customers are told they need to wait a week or longer. The grimacing elvish creatures, which come in “blind boxes” that keep buyers in suspense over which one they might get, sell for as little as US$20. But a rare variety sold for US$150,000 at an auction on Jun 10. It is not just Chinese children trying to get their hands on the dolls; celebrities including David Beckham, a British ex-football player, and Rihanna, an American pop star, have recently gone public with their appreciation.

The Labubu craze has sent Pop Mart’s shares up by 170 per cent since the start of the year. It is one of a growing cohort of Chinese consumer brands whose popularity is surging. For decades Chinese shoppers tended to look overseas for the latest trends in cosmetics, fashion, hospitality and more. Now they are flocking to local luxury firms, high-end make-up brands and milk tea shops. What is more, many of these brands are gaining a devoted following abroad. Western brands should be worried.

It is an odd time for a boom among Chinese consumer products. Sputtering economic growth has caused household spending to weaken. Yet the strain on Chinese shoppers’ wallets is one of the factors propelling local brands. As consumers have become more price sensitive, cheap but decent quality home-grown brands have thrived.