Industry Investment Rating - The industry investment rating is "Outperform" [1] Core Viewpoints - The report emphasizes the strong growth potential of the retail trade industry, supported by a favorable market environment and consumer spending trends [1][4] - The report highlights the importance of IP (Intellectual Property) in driving revenue and expanding market reach, particularly through cross-media strategies [5][9] Summary by Relevant Sections Industry Overview - The closing index level is 2332.96, with a 52-week high of 2501.51 and a low of 1731.43 [1] Investment Recommendations - Key companies in the IP industry include Pop Mart, Blucol, and Miniso, with investment ratings of "Buy" for Pop Mart and Blucol, while Miniso remains unrated [11] - Pop Mart's stock price is 273.00 HKD with a market cap of 366.6 billion HKD, and an estimated EPS of 4.99 for 2025 [11] - Blucol's stock price is 108.00 HKD with a market cap of 26.9 billion HKD, and an estimated EPS of 4.32 for 2025 [11] Company Analysis - Nintendo has transformed from a card company to a gaming giant, with a market value exceeding 100 billion USD and a player base of 128 million [16] - The company focuses on high-quality game IPs, emphasizing originality and fun, with successful franchises like Super Mario and Pokémon [18][23] Historical Development - Nintendo's history showcases its evolution from a card manufacturer to a leader in the gaming industry, with significant milestones in product innovation and market expansion [31][32] Cross-Media Strategy - Nintendo's IPs, such as Mario and Pokémon, have expanded beyond gaming into various media, enhancing their cultural significance and commercial value [65] - Mario's commercial value is estimated at 38 billion USD, while Pokémon's is the highest globally at 147 billion USD [53][65]

Group 1 - In the late 1980s, Nintendo dominated the gaming industry with a 95% market share in Japan and 83% in North America, but this changed dramatically by the mid-1990s due to Sony's entry into the market [1][2] - The introduction of CD-ROM technology by Sony allowed for larger game sizes and lower costs, prompting Nintendo to consider upgrading from cartridge-based systems [2] - A partnership was formed between Nintendo and Sony to leverage Sony's technology while Nintendo maintained strict control over third-party licensing, but this partnership soon faced significant challenges [2][3] Group 2 - The partnership between Nintendo and Sony collapsed when Nintendo discovered a control rights loophole in their agreement, leading to Nintendo secretly negotiating with Philips [3][4] - At the 1991 CES, Sony was blindsided by Nintendo's announcement of a partnership with Philips, prompting Sony to launch the PlayStation independently, which became a major success [3][4] - The PlayStation sold approximately 100 million units, while Nintendo's subsequent console, the Nintendo 64, struggled due to its reliance on cartridges and high costs [3][4] Group 3 - The conflict between Nintendo and Sony exemplifies a "prisoner's dilemma," where both companies prioritized individual gains over collaboration, leading to suboptimal outcomes for both [4] - The dynamics of repeated interactions in trade negotiations, such as the U.S.-China tariff disputes, reflect similar patterns of behavior seen in the gaming industry rivalry [4][6] - The strategies employed in these repeated games highlight the importance of cooperation and the potential pitfalls of short-sighted tactics [4][6]