The Labubu Effect: How FOMO Drives the Hype for Limited Merchandise

A couple of weeks ago, I was invited to an intimate lunch with fellow female founders, hosted by Integra Partners, a leading VC based in Singapore, at Ashta. While waiting for the meeting, I grabbed a coffee and settled in to people-watch (as one does in busy places like Ashta). In the span of just 30 minutes, I counted more than ten people with Labubu bag charms dangling from their bags. I couldn’t help but wonder: what’s the real deal here? Was it all thanks to Lisa sparking the craze? Or was there something deeper at play—maybe a little nudge from the universal fear of missing out?

I have to admit, I don’t crave a Labubu charm myself, but it’s fascinating to watch this phenomenon from the outside, like being on the field bench during a game. As I sat there, watching the hustle and bustle of Ashta—people meeting, rushing to the office, grabbing coffee—I couldn’t stop thinking about how quickly something can become "must-have" through collective hype. Is it really about the charm itself, or are we all just trying to stay relevant in the world of limited-edition everything?

This wasn’t the first time I’d seen the power of FOMO in action. Back in my childhood, there was a bubble gum brand called YOSAN, and they promised great prizes if you could collect the letters to spell out the brand. The letter “N” was like a myth. After a while, I started to think it was all just clever marketing (and maybe 1 in a billion kids actually got that prize).

Fast forward to today, and FOMO is everywhere. Just last month, while I was in Singapore for Tenity’s masterclasses, I stopped by the Pop Mart store in Takashimaya. To my surprise, nearly everything was sold out—even the less popular items. It was clear that FOMO was driving people to buy just for the sake of not missing out. It’s fascinating to see how deep this need runs.

How FOMO Drives Consumer Behavior

So, what exactly fuels this desire to grab limited-edition items, even the ones people might not care about? That’s the magic of FOMO—Fear of Missing Out. It taps into a very human instinct: act fast, or risk never getting your hands on something exclusive. And while FOMO might seem like a natural reaction, it’s often a very calculated strategy.

During my time at Insider, we built features designed specifically to create FOMO. From countdown banners to exit intent pop-ups and those "X people have this item in their cart" messages, these tools were made to push customers into buying now rather than later. FOMO isn’t just about scarcity; it’s an engineered process that brands use to drive sales, and it works like a charm (no pun intended).

The Labubu craze, Pop Mart figurines, or even YOSAN wrappers from my childhood—all of these are examples of how FOMO can make us chase after something just because it’s rare. Brands know how to leverage scarcity to make us feel like we’re missing out on something essential.

The Role of Social Media in Amplifying FOMO

Then there’s social media, the ultimate FOMO amplifier. Platforms like Instagram and TikTok take limited-edition drops and turn them into events that feel like once-in-a-lifetime moments. Influencers flaunt their rare finds and exclusive collections, and suddenly everyone’s scrambling to get in on the action.

With Labubu, it wasn’t just about the charm—it was about the status that came with it. Lisa might have started the trend, but social media made it explode. And when I walked into that Pop Mart store in Singapore, even the less popular items were gone—because when FOMO takes hold, anything becomes valuable as long as it’s exclusive.

The Fine Line Between Hype and Overkill

Of course, FOMO can be a double-edged sword. Sure, it creates immediate demand, but if every release is “limited” or “exclusive,” people can start to feel a bit exhausted. Brands that get it right know how to use FOMO sparingly, keeping people excited without overdoing it.

Conclusion

FOMO is a powerful force in today’s consumer world, whether it’s driving the Labubu craze or pushing people to empty the shelves at Pop Mart. But let’s be real—it’s not always about the product itself. It’s about feeling connected, relevant, and part of something bigger.

So, what about you? Have you ever fallen for the Labubu Effect and grabbed something just because everyone else had it? No judgment—I’m happily watching from the field bench with my coffee.

(Photo source: Canva)