New York, CNN —

Naomi Lin's favorite high-end accessory is a popular, if somewhat accustomed, style that has proven surprisingly resilient in the face of tariffs.

No, it's not the latest from Manolo or Prada -- it's a stuffed animal that looks like a goblin.

It's a Labubu, a palm-sized Norse fairy with bright eyes, sharp teeth and a mischievous smile.

Lin, a medical student from Nebraska, owns dozens of Labubu -- the one hanging from her Chanel bag, dressed appropriately with a tweed outfit, a little headband and a mini Chanel bag.

And Lin isn't the only one who's been seduced by the Labubu's charms.

Labubu is adorable in a way, soft, miniature and dressed in the kinds of costumes you'd want to dress up your baby in -- a Jack-O'-Law pumpkin for Halloween or a pair of tiny denim suspenders.

But they have gloomy eyes and a zigzag grin that goes from ear to ear, and it's scary to catch their gaze in the middle of the night.

The playful yet cuddly plush toys have become a global phenomenon among Gen Z and older generations, often hanging from handbags, backpacks and belt loops.

People flock to shopping malls and wait for hours to buy Labubu and other toys like it, which first appeared in the 2015 "Monster" storybook and are sold as mystery "blind boxes" where buyers have no idea in advance which collectible they will get.

Labubu hanging on the Chanel handbag of medical student Naomi Lin, whose unique mini "Chanel" handbag.

Pop Mart, the Chinese toy company that distributes the stuffed toys, is seeing rapid sales growth in mainland China and the U.S.: In 2024, Labubu contributed 3 billion yuan (about $410 million) to Pop Mart, which had total revenue of 13.04 billion yuan (about $1.8 billion) that year.

Labubu and the company's other dolls have so far shown strong resilience amid sluggish consumer sentiment in the U.S. and the trade war between Washington and Beijing, and that growth has not slowed down.

But the size of the company's sales isn't the only thing that's impressive, it's the growth rate that's even more impressive.

Pop Mart's revenue outside of China surged 375.2% to 5.07 billion yuan (about $7.03 million), and Citigroup Research estimates that Pop Mart's U.S. revenue grew between 895% and 900% last year.

Offline, Pop Mart's physical stores in places like Los Angeles, Paris and Bangkok are known for new product launches, with customers lining up to buy them.

The growth is also helped by a range of other dolls — Baby Molly, Crybaby, Dimoo, Pucky and at least 30 others sold on the company’s U.S. website.

If you’re lucky enough to score a Labubu, they can cost as much as $85.

On StockX, resellers are paying hundreds of dollars.

These fans are willing to spend. Lin spent hundreds of dollars and hours on TikTok live streams to secure a doll called Zimomo, a 22-inch creature with a spiked tail.

“It’s in high demand, so it’s like a luxury item,” Lin said.

Lin said she orders outfits for her Labubus from AliExpress or her sister knits them by hand.

Lin’s family isn’t alone in its obsession with Pop Mart.

Her father, who bought Lin and her sisters their first Labubu during a visit to Taiwan, also has a Crybaby stuffed animal hanging around his neck.

Pop Mart's meteoric rise reflects America's history of love for cute things from Asia (think SpongeBob and Hello Kitty).

The toys' growth trajectory has continued despite a push for homemade products and anti-Asian sentiment during the COVID-19 pandemic.

Anne Cheng, an English professor at Princeton University, told CNN that while Asian people have faced bias and stereotypes, the products they make "become accessible when they are presented as little boxes of consumable things."

The pixie, baby and creature keychains also showcase a sense of luxury that's more accessible to most consumers.

Celebrities have played a big role in the trend, making them status symbols.

K-pop star Lisa told Vanity Fair that she got into blind boxes in early 2024 and "blew all the money" while traveling around the world.

And Rihanna owns a Labubu.

Some of the Labubu collections do evoke past trends.

But compared to luxury collectibles, such as luxury brand bags or watches, toys, which sell for an average of $20 to $40, aren't expensive.

In turbulent times, people are looking for affordable luxury.

People are "looking for a thrill, hoping that anything can bring happiness," said Ali Domrongchai, a food editor in New York City who got his first Labubu as a gift last year.

Blind boxes are not new.

The idea of ​​buying something without knowing what's in the package has fueled many crazes, from baseball cards to video games.

The phenomenon of toy collectors reminds me of the Beanie Baby craze in the '90s, or the feeling of guessing what you get in a McDonald's Happy Meal.

Consumers who spoke to CNN compared the instant joy of opening a blind box to the thrill of gambling.

China introduced strict regulations in 2023 due to concerns about addiction, banning the sale of mystery boxes to children under 8 and requiring older children to get guardian consent before buying.

"It fits your desire to collect things, and you keep buying," Cheng said.

Can Labubu be recession-proof?

Pop Mart, like much of the toy industry, expects to be inevitably affected by President Donald Trump's trade war with China.

The United States and China reached a 90-day truce this month, with the U.S. reducing its 145% tariff on most Chinese imports to 30%, while China reduced its 125% retaliatory tariff to 10%.

On its FAQ page, Pop Mart said it would cover the costs caused by the tariffs, saying "customers do not need to pay additional tariffs."

But their latest release in April, a gradient-colored Labubu, costs $27.99, $6 more than the previous version.

CNN has reached out to Pop Mart to find out how they plan to cover these tariff costs.

Citigroup said it expects the company to speed up supply chain diversification and raise prices to enter the U.S. market, or prioritize expansion in other countries.

Meanwhile, Hong Kong-listed Pop Mart shares have outperformed Tencent and Alibaba so far this year.

Where there is a trend, there will be imitations.

For those who can't get their hands on the real Labubu, counterfeits have emerged on the market - often called lafufus or fauxbubus - but they often have only lower-quality fur or slightly deformed smiles.

And blind boxes are not exclusive to Pop Mart.

Cute, quirky products are a staple of East Asian culture, and Asian discount stores such as Miniso and Daiso have hundreds of branches in the United States selling sought-after blind box toys for less than $5.

As the market expands, the likelihood of competitors surfacing in China is increasing, which is what Citigroup analysts warned.

And Lin's Labubu, to be clear, does not assemble real Chanel clothes.

The toy's clothes come from AliExpress, the cheap accessories source for many Labubu fans.

Fake Labubu are also known as Lafufus.

Domongi, a food editor from New York City, has kept an eye on the trend: Her octogenarian aunt also dangles Labubu from her Louis Vuitton handbags.

When she visited family in Thailand last year, she and her cousin visited “almost every mall in Bangkok” in search of the famous stuffed animals.

But she found none, and $40 for a toy is “an astronomical sum” in Thailand.

Even for those who have resisted the magic of Labubu, there are always more fans trying to pull them to the “dark side.”

When a CNN reporter, a self-proclaimed Sanrio and Miffy fanatic, confessed that she found the monsters more disturbing than cute, Domongi was quick to offer encouragement: “They’re not scary, they’re just silly guys. Look, you just have to spend more time with them.”