Sarah Wells: Lots of lessons in the Labubu craze that can help you spot the next big investment opportunity

Trends come and go. But every now and then something comes along that captures the hearts and minds of investors, collectors and TikTokers the world over. In 2025, that trend was Labubu — the adorable soft toys with sharp teeth that were absolutely everywhere. And it got me thinking — what can we learn financially from these kinds of trends? Labubu’s range in price from $15 to hundreds of dollars, and as collector’s items they can sell for up to $6000. The most expensive one ever sold was $150,000 at a Beijing auction. So, are they a waste of money or an investment opportunity in a fur coat? I’m always keen to share finance knowledge with the next generation, which got me thinking: What could Labubu teach us about the economics of supply and demand? Firstly, why was Labubu so popular? For the uninitiated, Labubus were also a huge 2025 TikTok trend, whose “owners” were encouraged to showcase their collection on the platform — with everything from creative unboxings to elaborate stories about their new plush pals. Basically, Labubu’s took on a life of their own through content creators. Last year, people the world over were enchanted by the idea of having a Labubu hanging from their bag or keyring. Then, before you know it, you’ve added two or three more to your online shopping cart. They’re the Cabbage Patch Kids for gen Z. But here’s what’s interesting: The rise of the Labubu is a real-world illustration of supply and demand. Just like any hot investment, when the demand for Labubu toys surged, so did their supply. Sellers then began churning out an array of colourful Labubu accessories and Labubu-themed merchandise. This phenomenon parallels the stock market, where trends can drive the value of certain assets through the roof. Think of the meteoric rise of meme stocks like GameStop or AMC. When a community on TikTok decided to rally behind the Labubu craze, or a K-pop band member took one on stage, demand skyrocketed, and so did the prices on the secondary resale market. The investment playground had many first-time buyers diving into the fray, excited by the thrill of the chase, and rare Labubus suddenly entered the world of high value, must-have items. In the context of investing, Labubus serve as a reminder that value can often be subjective. One minute, you’re watching a Labubu intro video. Next, you’re inspired to invest in the trend. The lesson here? Stay alert. Trends shift as quickly as the latest TikTok dance — what’s hot today may be forgotten tomorrow. Think of the pump-and-dump of penny stocks and market crashes of yesteryear. And what about the role of influencers in this modern economic landscape? They’re akin to the market-makers of social media, crafting narratives that can send trends soaring or crashing. When a TikTok star with millions of followers decided to showcase their Labubu collection, suddenly it became the must-have toy for every aspiring collector. Just like a viral video with millions of views, the right endorsement can lead to a frenzy of interest, driving up popularity and perceived value. This also opens discussions about the ethical implications of influencer culture. Just like investing in a trendy stock based purely on hype can lead to disastrous results, following influencers without doing due diligence can lead you down a perilous path. Always do your research before jumping on the bandwagon. The rule for trends is this: It’s OK to dabble, just don’t bet the house on it. TikTok trends aren’t just about entertainment, they’re a fascinating reflection of modern economics. By understanding the dynamics of supply and demand, the influence of social media and the importance of critical thinking, you can navigate this investing playground with finesse. Here’s my five top tips for investing in the next big trend: Understand supply and demand: Trends can create significant fluctuations in supply and demand. When a product gains popularity, its value can rise rapidly. Keep an eye on emerging trends and how they affect market dynamics. Leverage social media influence: Influencers play a crucial role in shaping trends. Their endorsements can drive both interest and demand. But remember the importance of due diligence — don’t follow trends based on influencer hype. Stay adaptable: The investment landscape is continuously evolving. Be open to exploring unconventional investment avenues and stay flexible as trends shift. What’s popular today may be forgotten tomorrow. Dabble wisely: It’s fine to explore trendy investments but don’t invest all your resources into them. Start small and test the waters to avoid significant losses. Educate and reflect: Use trendy investments as a learning opportunity. Discuss concepts like supply and demand with younger generations, making finance engaging and relatable. Enjoy the quirks of investing but maintain a critical perspective on trends. And while buying and selling Labubus might just inspire the next Jeff Bezos to start his empire, my advice is enjoy the quirk factor, learn the money lessons and let them teach kids about supply and demand. But don’t get too “delulu about your Labubu” because trends come and go. Now excuse me while I go and finish my Rubik’s cube. Sarah Wells is a Perth-based money and finance commentator