Core Insights - The "Guzi Economy," referring to merchandise derived from popular IPs in anime, games, and films, is experiencing significant growth in China, with a market size projected to reach 168.9 billion yuan in 2024, representing over 40% growth from 2023, and expected to exceed 300 billion yuan by 2029 [1][2] Demand Side Analysis - The primary consumer base driving the "Guzi Economy" consists of the younger generation, particularly those born in the 1990s and 2000s, who are characterized by a strong desire for self-expression and emotional fulfillment, leading to lower price sensitivity and inelastic demand for these products [1][2] Supply Side Analysis - The flourishing cultural industry in China is producing a wealth of quality IPs, while a robust manufacturing supply chain enables efficient production of various merchandise. Marketing strategies such as limited releases and collaborations create artificial scarcity, further stimulating consumer demand [2] Economic Impact - The rise of the "Guzi Economy" not only diversifies consumer choices for young people but also injects new momentum into the cultural industry, transforming niche interests into substantial economic sectors and showcasing significant economic vitality and growth potential [3]