Yes, you read that right – Labubu. Thankfully, I have Gen Z kids and a marketing team that keeps me up to date on the latest pop culture.
So what do Labubus and marketing have in common? A magical ingredient called Joy! Hang in there with me – economic uncertainty has impacted consumer behavior in a number of ways. They’re visiting more stores and retail channels to find the best value and trading down to lower-cost alternatives or, increasingly, purchasing items at a discount to save on serial items like groceries and household staples. Recent reports also show that Gen Z is cutting back in certain categories like accessories and apparel.
Yet many consumers are still spending more on the things that matter to them — whether it’s health and wellness, quality of goods or something that brings them joy — yes, joy.
The remarkable rise of Labubus is a fantastic case study. The stuffed animals have taken social media by storm: selling out on PopMart, re-selling for hundreds to thousands of dollars and even becoming an international fashion trend.
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The biggest lesson for marketers: this era of economic uncertainty doesn’t mean all doom and gloom. It’s about keeping up with how consumers are shifting their spending habits. Understand what they’re willing to splurge for versus where they’re cutting back. Most importantly, get to the bottom of the unique value your brand and product brings — not just in terms of price but also the overall value that can include quality, wellness, nostalgia, trendiness and yes, joy. Reaching this ‘why’ will inform a marketing strategy that enables you to connect with customers and prospects on a deeper level.
We all Just Need a Little Joy
In times of hardship, don’t underestimate the power of nostalgia or a product that ignites a sense of joy. Trends like “Treat Yourself Culture” or “Sweet Treats” showcase that even if consumers are adopting more disciplined habits, whether it’s on spending or health and wellness, everyone needs to indulge sometimes.
As marketers, we know the power emotion holds, from joining a trend to feel a sense of belonging and social connection, remembering core childhood memories filled with nostalgic brands or the simple happiness around splurging on a high-quality latte with delicious cold foam.
During COVID, we saw consumers nest and become more nostalgic as shelter-in-place slowed life down just a bit and quality time with immediate family members reminded us of simpler times. Fast forward to today, with economic uncertainty, global wars, devastating weather events and breaking news inundating our every moment – seeking joy seems only natural. For marketers, the challenge is thinking about how your brand fits the bill:
- For toy brands, did you have a 90s or Y2K surge that can stir up nostalgia for millennial parents as they look to create new traditions with their own families this holiday season? Or drum up excitement from Gen Z’ers who are starting to build collections of unique items like Labubus?
- If you’re marketing a snack or drink, can you embrace messaging across an omnichannel campaign to remind shoppers of those feel-good childhood moments that your brand was a part of?
- For quick-serve restaurant and coffee chains, if you’re noticing folks are visiting less frequently to cut back on away-from-home dining or coffee spending, can you bring back an old-time favorite like the McRib or re-engage those previously loyal customers with a weekly “Sweet Treat” or “Happy Hour” discount for those who might be looking for a mid-afternoon pick-me-up during the workday?
Have fun with it! Remind customers why your brand might be worth the splurge or extra few bucks by leaning into that emotional connection that can spread cheer and joy in times of uncertainty.
You’re Probably Missing Some Valuable Customers
The rise of Labubus also showcases how you might be missing out on valuable customers. It’s not just toy collectors and parents searching for Labubus; younger demographics like Gen Z and millennials are jumping into the mix to be a part of the trend. A comprehensive and creative insights approach, including the use of AI, can help you find and stay ahead of unexpected shifts in consumer behavior. Better yet, they may help you discover that you can reach a whole new segment for your product or brand.
Extend the Power of High-Performing Social Content Beyond the Feed
Social media can have incredible power in driving sales, but extending that success with a true omnichannel strategy empowers your brand to own the moment. The reality of our fragmented media and shopping landscape is that even when a product or brand goes mega-viral, consumers are exposed to thousands of others. A full-funnel approach keeps your brand and product consistently top of mind, including those final moments of consideration in-store, so shoppers are less likely to forget their interest and excitement for your product, end up shopping with a competitor or mistakenly buy a dupe (a.k.a. a “Lafufu”).
Maximize Every Incremental Opportunity with Real-Time Marketing and Optimization
Some things we can’t predict, but we can embrace technology and leverage the tools that help us adapt in real time when those moments strike. Whether it’s connecting with consumers with relevant advertising as they shop, navigating shifts in spending habits due to uncertainty or enhancing your measurement infrastructure with tools that power in-flight optimization, leveraging these technologies is essential in better positioning your brand to meet the moment.
Attention and virality can be fleeting. The ability to quickly optimize toward what drives the greatest incremental impact, without having to wait until post-campaign to discover those learnings, prevents any potential sales from being left on the table — opportunities no one wants to miss in today’s economic climate.
Whether Labubus stick around for the long haul or prove to be another fleeting viral moment, the takeaways are critical:
- Lean into the data, experiment with AI and try to stay ahead of the curve, so you’re setting trends rather than playing catch up once they’ve passed.
- Stop wasting time and energy you’re spending on pessimistic outlooks and invest it in innovative and creative ideas to connect, or re-connect, with customers.
- From shifts due to economic uncertainty to evangelizing a viral moment, invest in the technology that can help you adapt and drive the greatest incremental impact.
Last but not least, enjoy the ride, have some fun and embrace joy!
Michael Della Penna is InMarket’s Chief Strategy Officer, bringing 30+ years of digital marketing experience. Previously, he served as Cuebiq’s Chief Revenue and Growth Officer, where he built and led the sales, customer success and supply partnerships teams. He also served as Group VP, Oracle Marketing Cloud and SVP, Emerging Channels at Responsys. Additionally, Della Penna founded Conversa Marketing, a social CRM company that was acquired by StrongView. His other notable senior positions include Epilson’s CMO and CMO at Bigfoot Interactive. Della Penna has been recognized among B-to-B Magazine’s “100 Most Influential People in B2B and Interactive Marketing” five times.
