Core Viewpoint - The Chinese潮玩 (trendy toy) market has seen the emergence of popular IPs, but sustaining growth post-peak is a critical challenge for companies in this sector [1][2]. Group 1: Market Dynamics - The潮玩 industry has experienced a surge in popularity with successful IPs like Labubu from泡泡玛特 contributing nearly half of the company's revenue in 2024 [1]. - The lifecycle of popular IPs varies, with some lasting only a few years while others, like Hello Kitty, achieve long-term success through stable growth and multi-channel content output [2][6]. - The shift in consumer content consumption habits has expanded the definition of content beyond traditional media to include short videos, collaborations, and theme parks [3]. Group 2: Content Strategy - Continuous engagement with consumers is essential for extending the lifecycle of IPs, with companies exploring various content forms to maintain relevance [3][4]. - The combination of multiple IPs can mitigate risks associated with reliance on a single brand, as seen with Disney's diverse portfolio [4]. Group 3: Valuation Considerations - The valuation of潮玩 companies is influenced by their classification as either retail or content companies, with a stable growth phase justifying a PE ratio of 20 to 25 [5][6]. - The ability to withstand market cycles and maintain differentiated advantages is crucial for financial performance, with key metrics including inventory turnover, gross margin, and return on equity (ROE) serving as indicators of effective strategy execution [6]. Group 4: International Expansion - The trend of Chinese潮玩 brands expanding internationally is notable, with泡泡玛特's Labubu gaining traction in the U.S. market [7][8]. - Localization is critical for success in foreign markets, as demonstrated by the Crybaby series designed by local Thai designers, which became a top-selling IP for泡泡玛特 in 2024 [8]. - Establishing a localized operational framework is essential for Chinese IP brands to thrive overseas, requiring enhanced resource integration and management capabilities [8].