Labubu, Unboxed: the labor behind the global toy phenomenon : China Labor Watch

Overview

In 2025, a small, fang-toothed, wide-eyed designer toy known as Labubu emerged as a global cultural phenomenon. Created by artist Kasing Lung and then licensed by designer toy company Pop Mart, Labubu products have sold out rapidly across Asia, Europe, and North America, generating long queues and viral attention.

In the summer and fall of 2025, China Labor Watch conducted an in-depth investigation into a Labubu factory, Shunjia Toys Co. Ltd. at Xinfeng County, a core manufacturing facility producing the toys for Pop Mart. At the time of the investigation, the factory employed more than 4,500 workers and is a key supplier in Pop Mart’s latest Labubu series.

Pictured above: Labubu toys produced at the Shunjia Factory, Xinfeng County

Through on-site worker interviews and document review, the investigation revealed key labor issues. This includes overtime hours far exceeding the legal limit, extensive use of dispatched labor, opaque contract practices, potential evasion of social insurance contributions, inadequate safety training and deficiencies in occupational health and safety protections. While no child labor was identified, the factory employed workers aged 16 as long-term production workers under the same conditions as adults, without providing the special protections required under Chinese law.

The investigation also found no labor union or effective grievance mechanism, alongside widespread reports of bullying by management, verbal sexual harassment, and worker concerns regarding living and dining conditions. CLW calls on Pop Mart, as the brand owner and primary beneficiary of Labubu’s commercial success, to take immediate action to remediate labor violations within its supply chain, compensate affected workers, and ensure that future production complies with both Chinese labor law and internationally recognized labor standards.

Pop Mart and the Rise of Labubu

Pop Mart, a designer toy retailer best known for its blind-box collectibles, was founded in Beijing in 2010. In 2019, the company signed an exclusive global licensing agreement with Labubu’s creator, Kasing Lung.

In April 2024, a K-Pop idol from the group Blackpink posted about Labubu on Instagram, triggering a surge in global demand across cities including Los Angeles, Bangkok, Singapore, and Madrid. While Labubu products typically retail for USD 20–30, some editions resell for hundreds of dollars, with limited editions reaching prices exceeding USD 10,000 on secondary markets.

This surge in popularity has been accompanied by explosive financial growth for Pop Mart. In the third quarter of 2025, the company’s overseas revenue grew by 370%. The “The Monsters” series, which includes Labubu, generated USD 670 million (RMB 4.81 billion) in revenue, accounting for 34.7% of Pop Mart’s total revenue during the period. Driven largely by Labubu’s success, Pop Mart CEO Wang Ning stated that the company was on track to reach USD 2.78 billion (RMB 20 billion) in revenue in 2025, and that USD 4.18 billion (RMB 30 billion) would also be “quite easy.”

OEM Production and Shunjia Toys

Less visible to consumers is the fact that Labubu toys are produced in OEM factories in China. Under an OEM arrangement, factories manufacture products on behalf of a brand and operate under the pricing, quality, and production schedules set by the brand. As a result, labor conditions in OEM facilities are closely shaped by brand sourcing practices.

Shunjia Toys is a manufacturing enterprise specializing in high-end plush toys and collectible figures, operating multiple factories across China. As an OEM manufacturer, Shunjia undertakes large-scale, on-site production for Pop Mart.

The Xinfeng County factory was newly established in July 2024 with a registered capital of USD 2.7 million (RMB 10 million) and serves as a major manufacturing base for Labubu products. Public records indicate that the factory was designed with an annual production capacity of 12 million toys, reflecting Pop Mart’s rapidly growing demand and highlighting Shunjia Toys’ strategic position within Pop Mart’s supply chain.

However, based on investigators’ on-site observations of packaging operations, actual production appears to be significantly higher. The factory operates four packaging workshops, each with approximately 10–15 packaging lines. Using a conservative estimate of 3,500 units per line per day, daily output is approximately 182,000 toys. Assuming roughly 300 working days per year—as workers typically have only one rest day per week—annual output would reach approximately 54.6 million units, far exceeding the disclosed planned capacity.

How much are workers paid? Assuming a daily wage of USD 29 (RMB 200) per worker and a workforce of 4,500 workers, the factory’s total daily labor cost is estimated at USD 129,000 (RMB 900,000). Based on a daily output of 182,000 toys, the direct labor cost per toy is approximately USD 0.70 (RMB 4.95). This estimate reflects only frontline production and packaging labor and does not include other production-related costs.

Low labor costs is only a symptom of broader labor practices that systematically control workers and lower production costs. Shunjia Toys also operates within a multi-layered subcontracting system, outsourcing portions of Pop Mart’s orders to smaller nearby factories, such as Jiachang Toy Factory, extending its labor practices’ influence across the surrounding manufacturing network.

Methodology and Workforce Profile

Researchers conducted 51 in-person interviews, including:

15 workers inside the factory (10 female, 5 male) from assembly, machine sewing, hand sewing, and injection molding departments (5 regular employees and 10 dispatched workers);
36 workers interviewed outside the factory.

Interviews covered recruitment, contracts, working hours, wages, overtime, social insurance, occupational health and safety, dormitory and cafeteria conditions, management practices, and grievance mechanisms. Researchers also reviewed labor contracts, onboarding materials, training records, wage slips, attendance records, and workplace notices.

At the time of the investigation, the factory employed over 4,500 workers, approximately 70% regular employees and 30% dispatched workers. The workforce was predominantly female and relied heavily on local rural workers over the age of 40, including many over 50. Worker turnover was reported to be high.