It was All About Family
Cabbage Patch Kids were marketed not as toys, but as a family. There was an entire story developed to market these dolls.
According to the story, the creator of the dolls, Xavier Roberts “discovered” Cabbage Patch Kids after he followed a BunnyBee behind a waterfall when he was ten years old. Xavier discovered a magical cabbage patch behind the waterfall. The BunnyBee would sprinkle magic crystals over an open field and then a Cabbage Patch baby was born.
Source: Good Housekeeping
These babies were then taken to “Babyland General Hospital” where they were “adopted” by children and taken to their new homes.
According to the creator of the Cabbage Patch Kids, the idea came to him when he was about 21 as he was creating these dolls. He said that he had created the story himself.