Core Insights - The animated film "The King's Avatar: For the Glory" has successfully transitioned to online platforms, maintaining high popularity and ranking first on several video platforms' movie popularity charts [1] - The film has been included in the eligibility list for the 98th Academy Awards for Best Animated Feature [1] - Despite the strong performance of the "King's Avatar" IP in merchandise sales, the financial results of the parent company, Zhongwen Online, show a decline in revenue and increasing net losses [1][5] Financial Performance - In 2024, Zhongwen Online reported revenue of 1.159 billion yuan, a year-on-year decrease of 17.73%, with a net loss of 243 million yuan, a decline of 371.58% [5] - For the third quarter of 2025, the company reported revenue of 455 million yuan, a year-on-year increase of 31.43%, but a net loss of 294 million yuan, a decrease of 673.14% [5] Market Performance and IP Development - "The King's Avatar: For the Glory" has achieved a cumulative box office of 533 million yuan, breaking two historical records for fantasy films during the summer season [3] - The film's commercial strategy differs from many domestic animated films by having a well-established fan base and merchandise system prior to its release [3] - The merchandise market for the "King's Avatar" IP has seen significant sales, with 140,000 items sold across online and offline channels since the film's release [3][4] Strategic Insights - Analysts suggest that while the merchandise market is thriving, the financial performance of the IP will take time to reflect this success [5] - Zhongwen Online's IP business is transitioning from a rapid growth phase to a mature phase, requiring a multi-faceted content matrix and diversified channel expansion to fully realize IP value [6] - The company has a rich content reserve and a multi-platform distribution matrix but lacks a sufficient number of top-tier IPs [6] Future Directions - To achieve greater breakthroughs in the IP business, Zhongwen Online needs to enhance the cultivation of top-tier IPs and establish a comprehensive IP incubation and operation system [6] - Suggestions for improvement include refining IP creation by incorporating diverse elements, customizing products for overseas markets, and building a fan-centric innovative operation model [6]

Core Viewpoint - The article discusses the rise of the "emotional economy," highlighting how consumers are increasingly willing to spend on seemingly useless items that fulfill emotional needs, such as collectibles and novelty products [8][30][58]. Group 1: Market Trends - The launch of the mini Labubu figure by Pop Mart sold out in under five minutes, with resale prices skyrocketing to 300 yuan per piece, indicating a strong demand for collectible toys [4][9]. - Collaborations, such as the Hello Kitty digital camera bucket by KFC, also saw immediate sellouts and significant price increases on secondary markets, reflecting a trend in emotional-driven purchases [6][8]. - The emotional economy is characterized by consumers purchasing items that may not have practical utility but provide emotional satisfaction, as seen in the popularity of various novelty items and collectibles [8][30]. Group 2: Consumer Behavior - Young consumers are increasingly drawn to products that evoke nostalgia or emotional connections, leading to a surge in demand for toys and collectibles [18][68]. - The phenomenon of "emotional spending" is evident in various sectors, including food and beverage, where establishments are enhancing customer experiences to stimulate emotional responses [28][30]. - The emotional economy is not limited to physical products; virtual services and experiences, such as AI companionship and emotional support services, are also gaining traction among consumers [54][58]. Group 3: Economic Impact - The emotional economy in China is projected to reach a market size of 23,077.67 billion yuan in 2024, with expectations to exceed 45,000 billion yuan by 2029, indicating significant growth potential [58]. - Interest-driven consumption among young people accounts for nearly 30% of their spending, with key categories including pets, trendy toys, gaming, and travel [32][34]. - The rise of emotional spending is occurring against a backdrop of declining marriage and birth rates, with pet-related spending seeing substantial growth, such as an 800% increase in cat food sales during last year's Double 11 shopping festival [34][37].