Tiny Luxury in Troubled Times: A Study of the Lipstick Effect in POP MART’s Popular Toy IPs

This paper explores how the Lipstick Effect manifests in China’s trendy toy market through the case of POP MART and its emotionally driven character IPs. It addresses two core questions: why do young consumers continue to purchase non-essential collectibles during periods of economic stress? And what psychological and cultural mechanisms sustain this behavior? These questions are vital for understanding shifts in post-pandemic consumer psychology and the evolution of symbolic consumption among Gen Z in China. Using a qualitative case study approach, the research draws upon consumer behavior theory, emotional branding literature, and publicly available industry data. It focuses on the appeal of leading POP MART IPs—such as Labubu and Skullpanda—analyzing their emotional, aesthetic, and cultural dimensions. Findings indicate that these collectibles serve not merely as toys but as emotional substitutes and tools for identity expression. Much like cosmetics in traditional Lipstick Effect models, trendy toys provide affordable relief, symbolic self-affirmation, and a tangible connection to personal values. The narrative depth embedded in each IP amplifies brand loyalty and emotional resonance. Broader factors such as economic anxiety, rising youth unemployment, and digital-native identity formation all contribute to the popularity of symbolic micro-luxuries. This study expands the theoretical boundaries of the Lipstick Effect and offers actionable insights for cultural brands seeking to build deeper emotional connections with younger, uncertainty-shaped consumers.