Generation imperfect finds its voice in ‘ugly cute’

In Shanghai’s Xintiandi district, a 28-year-old marketing executive examines a $27.99 Labubu figure with nine sharp teeth and a mischievous grimace. The elf-like creature defies every convention of appealing design, yet she joins a queue stretching around the block. This scene represents more than consumer enthusiasm — it signals China’s embrace of “ugly cute,” an aesthetic revolution reshaping everything from toys to fashion to home goods. The ugly cute phenomenon, embodied by Pop Mart’s Labubu and spreading across industries, challenges traditional notions of beauty and desirability. But recent market turbulence raises questions about whether this cultural moment represents lasting change or a fleeting trend. On September 15, 2025, Pop Mart lost $13 billion in market value as Labubu demand cooled and JPMorgan downgraded the stock. Cognitive dissonance by design Unlike conventional cute characters that follow predictable formulas — large eyes, soft features, pastel colors — ugly cute deliberately subverts expectations. Labubu’s nine sharp teeth, pointy ears, and mischievous expression create what designers call “cognitive dissonance,” making the character simultaneously appealing and unsettling. The popularity of ugly cute is driven by shifts in public aesthetics and creative innovation. This movement reflects deeper psychological needs that traditional cute cannot address. Ugly cute taps into three core emotional drivers. First, it provides emotional relief in China’s high-pressure society. Products that embrace flaws and imperfection offer psychological permission to be imperfect — a radical proposition for consumers facing economic uncertainty and social expectations. Second, it serves as social currency, creating conversation starters and viral moments that conventional cute cannot match. Third, it represents rebellion against algorithmic aesthetics and the homogenized beauty standards dominating social media. The psychological mechanism is sophisticated. While viewing cute objects triggers oxytocin release for stress reduction, ugly cute goes further by normalizing vulnerability and emotional complexity. For Chinese millennials and Gen Z — facing declining marriage rates (down 20.5% in 2024) and redefining traditional life milestones — these characters become emotional companions that don’t demand perfection. Labubu’s algorithmic emotions Pop Mart’s approach to ugly cute represents the systematic commercialization of emotional needs. The company operates an “algorithmic” business model, using real-time data to detect cultural moments and amplify them instantly. Labubu exemplifies this strategy. Originally a niche character from Hong Kong artist Kasing Lung’s “The Monsters” series, the figure exploded after celebrity endorsements from Lisa of Blackpink and Rihanna. Pop Mart’s monitoring systems detected this traction and immediately reallocated resources, creating what CEO Wang Ning calls a “doing-to-learn” approach. The results were spectacular until recently. Labubu generated 4.81 billion RMB ($675 million) in H1 2025, representing 34.7% of Pop Mart’s total revenue and 668% year-over-year growth. The company’s stock soared over 200% year-to-date, making Pop Mart more valuable than Sanrio, the Japanese IP giant that owns Hello Kitty, My Melody, and Cinnamoroll. But September 15, 2025 marked a potential inflection point. Pop Mart’s stock plummeted 9% after JPMorgan downgraded the company, citing weak catalysts and unattractive valuation. The decline wiped $13 billion from market value, while founder Wang Ning’s net worth dropped $6 billion in less than a month. The catalyst was Labubu 4.0’s lukewarm reception — despite featuring 28 variants. In the secondary market, Mini Labubu blind box sets (sold as sets of 14) initially sold above the official 1,106 RMB ($155) price — up to 1,800 RMB ($253) — but prices quickly declined by about 200 RMB ($28) within a day, reflecting cooling demand. Ugly cute beyond the blind box The ugly cute aesthetic extends far beyond collectibles, reshaping multiple industries across China. Taobao’s “Era of Uglies” (丑时已到) exhibition (held July 29-August 15, 2025 in Hangzhou) celebrated deliberately bizarre products — from fuzzy taxidermy sculptures to double-headed hoodies and frog-shaped tableware — that have generated over 100 million RMB ($14 million) in sales across related e-commerce industries. “This exhibition challenges aesthetic stereotypes, but also celebrates the diverse creative pursuits shaping our society,” said a Taobao team member. The offline exhibition in Hangzhou saw daily attendance of over 3,000 people, reflecting active engagement from young audiences and making ugly cute more of a grassroots movement than a corporate strategy. When home décor gets grotesque Fashion brands are embracing the trend through deliberately unflattering designs that prioritize personality over polish. Home goods featuring grotesque-cute characters — screaming rubber chicken doorbells, green fish masks, and anthropomorphized vegetables — serve as anti-anxiety outlets and conversation pieces. Beyond toys, ugly cute is becoming a broader cultural language. It shapes fashion, home décor, digital content, and lifestyle products, turning everyday objects into playful, rebellious statements. Its appeal lies not just in novelty, but in the way it allows consumers to express identity, challenge conventional aesthetics, and engage with a shared online and offline community. In this sense, ugly cute has evolved from a niche collectible phenomenon into a pervasive cultural trend influencing creativity, commerce, and social expression across multiple sectors. Jellycat’s soft power strategy To understand ugly cute’s significance, consider conventional cute toys that also appeal to Chinese adults. Jellycat, the British plush brand, achieved 830 million RMB ($116 million) in 2024 Chinese sales through traditional cute aesthetics — soft textures, endearing expressions, and comforting designs that transform everyday objects like avocados and croissants into huggable companions. “I’m just giving back to my childhood,” said one Jellycat fan, highlighting the nostalgia-driven appeal. Young professionals treat these plushies as “emotional partners” (情绪搭子), carrying them to work and speaking to them as non-judgmental friends. The hashtag “AdultsAlsoLoveToys” (#大人也爱玩玩具) has garnered over 100 million views on Xiaohongshu (also known as RedNote). Similarly, Disney’s Linabelle — a pink fox character launched in 2021 — became a global favorite through adorable appearance and strategic marketing. Hello Kitty, Sonny Angel, and other conventionally cute characters continue thriving by offering emotional comfort without challenging aesthetic norms. These brands succeed through different psychological mechanisms than ugly cute. While conventional cute provides pure comfort and nostalgia, ugly cute offers identity expression and rebellion. Both tap into adult consumers’ need for emotional connection, but ugly cute adds layers of social signaling and aesthetic disruption that conventional cute cannot match. The ‘kidult’ economy explained The success of both ugly cute and conventional cute toys reflects fundamental shifts in how adults relate to play and emotional expression. McKinsey’s 2024 survey found 64% of Chinese consumers prioritize emotional fulfillment over status signaling — a dramatic change from previous generations focused on traditional luxury markers. This “kidult” phenomenon spans cultures but resonates particularly strongly in China’s high-pressure society. Young professionals facing property market stress, employment concerns, and social isolation find emotional refuge in toys that offer unconditional comfort. On average in China, young people spend 949 RMB (about $133) per month on emotional consumption, with roughly 18.1% willing to spend over 2,000 RMB (around $281) monthly to fulfill their emotional needs, according to industry research. The psychological value proposition is sophisticated. Unlike status symbols that derive worth from exclusion, both ugly cute and conventional cute toys create inclusive communities. Collectors trade figures, share unboxing videos, and participate in fan meetups — transforming consumption into social connection. Affordability as emotional luxury Both ugly cute and conventional cute toys occupy what economists call the “lipstick effect” category — affordable indulgences during economic uncertainty. At $15-$30 per figure, these products provide luxury’s emotional benefits without luxury’s financial burden. This “treatanomics” approach particularly resonates with cash-conscious consumers seeking guilt-free indulgence. Ugly cute products offer additional value through their conversation-starting potential and social media virality, making them efficient investments in social capital. The business model innovation lies in monetizing emotions rather than materials. Pop Mart’s blind box format employs variable ratio reinforcement — the same dopamine-driven cycle powering gambling addiction — while Jellycat creates scarcity through limited distribution. Both approaches transform affordable objects into premium emotional experiences. The cooling moment and what’s next September 2025’s market correction suggests that ugly cute may be moving from hype-driven speculation toward a more sustainable form of emotional commerce. For Pop Mart, the challenge lies in evolving beyond novelty products to create lasting brand connections — testing whether ugly cute represents a genuine cultural shift or merely a commercial bubble. The regulatory environment adds complexity. In 2023, China restricted blind box sales to children under 8 and required guardian consent for older children, while state media criticized the “addiction” potential of mystery packaging. Yet adult consumers, who form the core of the trend, offer some insulation from regulatory pressures. Looking ahead, the lasting appeal of ugly cute seems tied less to individual characters and more to the celebration of imperfection and aesthetic rebellion. This ethos has already spread into fashion and home décor, where deliberately “flawed” designs — off-kilter patterns, asymmetrical silhouettes, and quirky accessories — reflect the same playful, subversive energy that made Labubu popular. Early signs indicate that this embrace of imperfection resonates with young consumers seeking self-expression and authenticity, suggesting that while specific characters may cool off, the broader cultural influence of ugly cute is likely to endure. Design principles for emotional connection The success of ugly cute reveals new principles for emotional product design. Traditional cute follows predictable formulas optimized for universal appeal. Ugly cute subverts these conventions, creating characters that are memorable precisely because they challenge expectations. Labubu’s design philosophy — embracing contradiction and imperfection — creates deeper emotional connections than conventional cute characters. The figure appears simultaneously mischievous and vulnerable, edgy yet comforting, creating what psychologists call "emotional complexity" that mirrors real relationships. This approach transforms products from simple aesthetic preferences into identity statements. Consumers don’t just buy ugly cute products; they signal values around authenticity, individuality, and rejection of algorithmic perfection. Beyond the trend cycle As the Labubu craze cools, the ugly cute phenomenon faces a critical test. Can emotional commerce built on imperfection sustain billion-dollar valuations, or will it prove to be another speculative bubble? The answer likely depends on brands’ ability to evolve beyond novelty toward authentic emotional connection. The broader implications extend across industries as younger consumers prioritize emotional fulfillment over traditional status markers. For Chinese consumers navigating economic uncertainty and social change, ugly cute characters offer something precious: permission to be imperfect, vulnerable, and emotionally complex. Whether this psychological need can sustain commercial empires remains uncertain, but the cultural shift toward emotional authenticity appears irreversible. The ugly cute obsession may be cooling, but the underlying hunger for products that embrace rather than hide imperfection has only just begun reshaping consumer culture.

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Generation imperfect finds its voice in ‘ugly cute’