In recent years, the explosive popularity of multiple IPs (intellectual properties) in mainland China has driven new consumption trends and fueled the growth of the "merchandise economy" and related industries. According to data from Licensing International (LIMA), China surpassed Germany in 2023 to become the world's fourth-largest IP retail market, with annual IP retail sales approaching 100 billion yuan.
However, in terms of per capita IP consumption, China's figure is only one-sixtieth that of the top-ranked United States, indicating significant growth potential for individual IP spending.
From the game Black Myth: Wukong achieving instant legendary status upon release to Labubu transforming from an "ugly-cute" trendy toy into a star internet sensation, in the consumption ecosystem dominated by Gen Z, original IPs are no longer just two-dimensional cartoon characters. Instead, they represent a comprehensive economic model driven by emotion, supported by culture, and realized through commercial innovation.
The 2024 Emotional Economy Consumer Insights Report, released by MobTech Research Institute, highlights that the rising consumer force no longer prioritizes just functional needs but places greater emphasis on the emotional value of products and the consumption process, as well as the ideals conveyed by brands.
Uniting consumer groups through cultural confidence
From content creation to commercial monetization, the shared success logic of these IPs lies in using storytelling to evoke resonance, uniting consumer groups through cultural confidence, and then generating revenue through cross-industry collaborations, merchandise, licensing deals, and other innovative methods. For example, Black Myth: Wukong captivated global players with its stunning art style and highly authentic Eastern narrative, allowing gamers to experience an immersive rediscovery of classical Chinese storytelling while battling monsters and leveling up. Even before the game's official release, developer Game Science had mapped out its IP monetization strategy, securing over 10 licensing and collaboration deals. After launch, a systematic IP derivative product rollout continued, with official merchandise such as plush toys, badges, and socks sold at retail chains like Miniso—many items selling out instantly upon release.
Labubu, on the other hand, taps into emotional consumption. With its bizarre elements—puffy eyes, sharp fangs, curly hair, and long ears—it embodies a "cuteness within the non-mainstream," resonating with young people's psychological identification with an "imperfect self." Under Pop Mart's operation, Labubu has continuously created scarcity and engagement through limited releases, blind boxes, fashion collaborations, and themed exhibitions, fostering a high-frequency trading and collectible appreciation market. Some rare figurines have even been resold for thousands of yuan on secondary platforms, gradually evolving into "transferable cultural assets."
From 'fast-consumption' to 'asset' attributes
Analysts point out that the success of these IPs is no accident but the result of cultural confidence, generational shifts in consumption, and collaborative innovation across industrial chains. Veteran IP marketing analyst Grey Chan believes that "moe-style" IPs and narrative-driven IPs are fundamentally two different products—the former being "emotional fast-moving consumer goods," the latter "cultural assets." The future of the trendy toy industry, he argues, belongs to IP operators who can transform "fast-consumption attributes" into "asset attributes."
Zhu Keli, founding director of the China Institute of New Economy, states that China's IP economy is undergoing a critical transition from quantitative to qualitative growth. On one hand, Gen Z's consumption of cultural products is no longer limited to functional needs but increasingly driven by emotional projection and community identity. On the other hand, high-quality IP development requires seamless integration across creation, commercialization, and experiential operation.
(Source: Wen Wei Po; Journalist: Kong Wenqiong; English Editor: Darius)
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