Core Viewpoint - The article discusses the expansion strategy of Kayou, a card game company, as it attempts to replicate the success of Pop Mart by entering Southeast Asian markets, particularly Thailand, with localized products like My Little Pony cards [2][4]. Group 1: Market Entry Strategy - Kayou plans to establish a presence in Southeast Asia by utilizing various retail models, including regional agency partnerships, single-store franchises, collaborations with chain supermarkets, and e-commerce platforms [5][7]. - The company emphasizes the importance of local distributors to facilitate market entry and brand promotion, similar to Pop Mart's successful collaborations with local partners [7][8]. Group 2: Product Localization - Kayou's My Little Pony cards in Thailand feature Thai language packaging, indicating a tailored approach to meet local consumer preferences while maintaining product familiarity [2]. - The company has launched several popular IPs overseas, including Harry Potter and DC Comics, which have strong global recognition and appeal to younger audiences [11][13]. Group 3: Challenges and Opportunities - Kayou faces challenges in finding a breakout product akin to Pop Mart's Labubu, as its current IPs lack the same level of cultural impact and global reach [14][16]. - The company must navigate cultural barriers in Southeast Asia, where card culture is less established, and ensure that its marketing strategies resonate with local consumers [16][23]. Group 4: Competitive Landscape - Kayou's strategy includes learning from successful American card companies like Panini and Topps, which have effectively built market ecosystems and user habits over decades [20][21]. - The article highlights the need for Kayou to enhance its IP portfolio and user engagement strategies to compete effectively in the global market [23][24]. Group 5: IPO and Future Prospects - Kayou has submitted its IPO application, which could bolster its credibility and support its international expansion efforts, although there are concerns regarding compliance and IP management [24][26]. - The potential for cultural exchange through its products may also serve as a positive narrative for its IPO, enhancing its market positioning [24][26].

Summary of the Card Game Industry Conference Call Industry Overview - The domestic card game market has experienced a compound annual growth rate (CAGR) of over 50% in the past five years, with card game companies dominating the market, holding a market share of 71.1% and sales reaching 8.2 billion, estimating the total market size at approximately 11.53 billion, with sales potentially reaching 20-23 billion [1][2][12] - The global fantasy trading card game (TCG) market is expected to reach 11.73 billion USD by 2033, with China accounting for nearly half of this market share [1][4] - Domestic collectible card games (CCG) primarily focus on licensed IP production, lacking original content and competitive gameplay, which significantly differs from the three major international TCGs (Pokémon, Magic: The Gathering, Yu-Gi-Oh) [1][6] Key Players and Market Dynamics - Card Game Company (卡游) is the leading domestic TCG developer, possessing 70 licensed IPs, including its own IP (e.g., 卡游三国) and popular international IPs (e.g., My Little Pony) [1][8] - The primary market (wholesalers) and secondary market (player trading) influence each other, where a thriving primary market can stimulate the secondary market and vice versa. However, excessive product issuance may harm the secondary market, leading to a decline in the primary market [1][10][11] - Card Game Company has shown steady growth from 2021 to 2023, with a projected explosive growth in 2024 through My Little Pony, contributing 8.2 billion to total sales of 10 billion [1][12] Market Trends and Future Outlook - The domestic card market has gone through several development stages, with significant growth noted since 2019, particularly with the introduction of popular series like Ultraman and Pokémon [2][12] - The rise of secondary players such as 集卡社, 黑卡, and 闪魂 indicates a competitive landscape, although they still face barriers in channels and production capabilities [3][12] - The successful IPO of Card Game Company is expected to provide growth opportunities for other companies in the industry, reducing barriers to their own listings [2][12] Regulatory and IP Considerations - The domestic IP market is on the rise, with expectations of increased regulation to protect intellectual property rights and ensure quality after-sales service [15] - The process for card companies includes obtaining copyrights, design, production, and marketing, with major distribution channels including self-operated stores, online platforms, and live-streaming sales [17][16] Risks and Challenges - Card Game Company faces risks such as negative public perception regarding high-priced card speculation and potential backlash against perceived exploitation of underage consumers [22][23] - The company also contends with the expiration of IP licenses and the pressure from emerging competitors [22][23] Consumer Behavior and Market Segmentation - Different types of card users exhibit varied spending behaviors, with sports cards attracting high-net-worth individuals, while anime and TCG cards appeal to younger demographics [28][30] - The economic environment significantly impacts consumer purchasing power, which can lead to market downturns during economic declines [30] Conclusion - The card game industry in China is poised for continued growth, driven by strong IP influences and a competitive landscape. However, companies must navigate regulatory challenges and consumer perceptions to sustain this momentum [1][2][15][22]