Rise and rise of Labubu and China: World factory to brand master

A 400 percent jump in profits in the first half of this year and their products hanging off the handbags of celebrities like Rihanna and Dua Lipa. 

The makers of Labubu dolls, Pop Mart, are achieving amazing things thanks to the soaring demand for these elf-like monster dolls created by Hong Kong Dutch artist Kasing Lung. 

Why have they exploded across the globe and can Labubu get even bigger (or smaller)? 

Chris Pereira, founder and chief executive at the consultancy firm iMpact, has two decades of experience in China helping businesses navigate international markets and believes Labubu's rise is a result of something much longer term.

Pereira told CGTN Europe: "It's a phenomenon and from a bigger perspective, having been in China for 20 years, helping over 300 different Chinese brands go abroad over the last five or six years, this is something we're seeing across industries. 

"China is becoming an expert at brand marketing in general. Pop Mart is one of the leading companies doing this. We saw over the last 20, 30 or 40 years China as the manufacturer or the factory of the world. That's changing now to the brand creation center of the world.

"So we see Labubu as one of the phenomenons that's happening now behind the scenes. It seems like it happened overnight, but actually Pop Mart has been working overseas for many years to achieve the success that we have now.

"I think the bigger story in this is the branding coming out of China, similar to what we saw with Japan in the 1980s."

Despite the enormous success of this particular toy, there have been questions over the company's creativity, considering the recent release of the palm-sized version known as the Mini Labubu.

Pereira added: "I think they will be in trouble if there's not innovation. A lot of people have asked me recently why Labubu is such a phenomenon. In some ways, it's becoming famous. It became famous because it was well-known and now it's become more famous because it's already famous. So it's a snowball in some ways. 

"But how to move forward from here is the next question. I think that's where many phenomenons stall. So what's the next step? We'll have to see in the future what Popmart brings us.

"I think what is lacking in some ways is there's not a story behind Labubu yet. People are asking, where did Labubu come from? Why is it called Labubu? I think these questions are interesting. Maybe the marketing campaign in the future could be the story behind the Labubu and the stories that can develop."