Core Insights - The article discusses the phenomenon of "free material" (无料) culture among young people, which has evolved from the subculture of the ACG (Anime, Comic, Game) community into a mainstream social interaction method at events like concerts and film festivals [1][5][20] - This culture emphasizes emotional consumption and community bonding, allowing individuals to express their love for certain IPs (intellectual properties) through the creation and exchange of handmade items [1][2][5] Group 1: Cultural Significance - "Free material" serves as a social currency, enabling fans to connect and share their passion in a tangible way, thus transforming individual content consumption into a more communal experience [2][5][25] - The act of creating and exchanging "free material" fosters a sense of belonging and emotional connection among fans, allowing them to return from an isolated state to a group dynamic [1][11] Group 2: Emotional Value - The emotional value of "free material" often surpasses its production value, as it encapsulates the creator's feelings and experiences, making it a meaningful gift rather than just a product [6][7] - The anticipation and excitement surrounding the creation and exchange of "free material" enhance the overall experience of attending events, turning waiting times into moments of joy [7][17] Group 3: Community and Identity - The exchange of "free material" has become a common practice at various events, providing opportunities for fans to meet and bond over shared interests, thus reinforcing their identities within specific communities [11][14][20] - This practice not only helps in forming new friendships but also allows individuals to express their creativity and personal style, contributing to a richer social experience [8][17] Group 4: Market Dynamics - The rise of "free material" culture is supported by social media and e-commerce platforms, which facilitate the sharing of ideas and the sourcing of materials for creation [20][24] - Platforms like Xiaohongshu (小红书) have played a significant role in popularizing this culture, bridging the gap between different fan communities and expanding the reach of "free material" beyond its original subculture [20][24] Group 5: Economic Implications - The "free material" trend reflects a broader "peripheral economy," where fans seek high-quality, diverse, and aesthetically pleasing merchandise that resonates with their emotional connections to their favorite IPs [25] - The demand for unique and personalized "free material" has led to the emergence of new business models, including low-cost custom production and community-driven initiatives, which cater to the evolving preferences of young consumers [24][25]

Core Insights - The article discusses the emerging trend of "pain gold," a fusion of IP elements from anime, games, and films with gold jewelry, appealing to young consumers who value both emotional and collectible aspects [3][4]. Group 1: Market Dynamics - The popularity of "pain gold" is driven by the increasing influence of subculture and IP products, leading to a unique "peripheral economy" that resonates with younger demographics [3]. - The high price of traditional gold jewelry has limited its consumption, while "pain gold" offers a lower entry price point, making it more accessible to young consumers [4]. - The transaction value of IP gold products has seen a significant increase, with a reported year-on-year growth of 294% [4]. Group 2: Pricing and Profitability - "Pain gold" has a high premium due to its complex production process and IP licensing fees, resulting in retail prices that can be several times higher than traditional gold jewelry [4]. - Some manufacturers employ "hunger marketing" strategies, creating a perception of scarcity and driving prices up significantly [4]. Group 3: Risks and Considerations - The high premium of "pain gold" is contingent on the popularity of the associated IP, which can be volatile; many IPs may lose popularity over time, leading to potential price collapses [5]. - Young consumers are advised to approach "pain gold" purchases with caution, avoiding impulsive buying and excessive leveraging, as the emotional appeal may not sustain long-term value [5]. - Businesses should prioritize established IPs with proven longevity to mitigate risks of unsold inventory and market saturation [5].

Core Viewpoint - The trading card brand Kayo is attempting to go public again after a failed IPO in 2024, facing challenges related to data security and regulatory compliance, while also contending with negative public perceptions regarding its impact on minors [1][11]. Group 1: Company Overview - Kayo's revenue has shown significant growth, with figures of 41.31 billion in 2022, 26.62 billion in 2023, and a projected 100.57 billion in 2024, despite a dip in 2023 due to decreased popularity of its main IP, Ultraman [3][8]. - The company has a high gross margin, with rates of 68.8%, 65.8%, and 67.3% from 2022 to 2024, indicating a profitable business model [8]. - Kayo's IP library has expanded to 70 IPs, with major contributors including Ultraman, My Little Pony, and others, which are crucial for its revenue generation [3][12]. Group 2: Market Dynamics - The trading card market in China has grown from 2.8 billion in 2019 to 13.3 billion in 2023, with a compound annual growth rate of 31.49% [3]. - The primary consumer demographic for trading cards is under 35 years old, with a significant portion being minors, which raises concerns about the company's long-term sustainability [12]. - Competitors like Hitcard and Jicard are gaining traction, with Hitcard securing various IP partnerships and Jicard adopting a dual strategy of introducing and creating original IPs [15][13]. Group 3: Industry Trends - The rise of live-streaming card unpacking has accelerated the popularity of trading cards among younger consumers, creating a new consumption scenario [5]. - The trading card segment is increasingly seen as part of the broader "peripheral economy," which has high profit margins compared to other merchandise categories [8]. - Kayo is diversifying its product offerings beyond trading cards into areas like figurines and stationery, although trading cards remain its primary revenue source, accounting for 81.5% of its income in 2024 [16][15].