2025-12-08 15:36Summary of the Conference Call on China's IP Licensing Industry Industry Overview - The Chinese IP licensing industry is benefiting from the growth of the pan-entertainment sector, with a compound annual growth rate (CAGR) of 11.6% from 2019 to 2024, and the market size expected to exceed 230 billion yuan by 2027 [1][5] - In 2023, the retail sales of licensed products in China reached 13.77 billion USD, ranking fourth globally [1][6] - The global IP licensing market is projected to grow to 363.6 billion USD by 2024, with a CAGR of 9.2%, and is expected to surpass 420 billion USD by 2029 [1][10] Key Trends - The rise of emotional consumption is reshaping consumer demand for IP products, shifting focus from content to emotional satisfaction [4][16] - The Chinese market is experiencing three main trends: the rise of emotional experience consumption, increased willingness to pay among consumers, and the expansion of domestic companies in the industry [2][3][16] - The overseas expansion of Chinese IP, such as the rapid growth of Pop Mart's international stores and the simultaneous release of "Celebrating the Year" on Disney's overseas platform, highlights the global ambitions of Chinese IP [3][13][17] Competitive Landscape - The IP licensing industry in China has a clear distribution across upstream, midstream, and downstream segments, with key players like Reading Group, Alibaba's Aliyu, and Pop Mart dominating their respective areas [8][12] - Reading Group's IP business revenue accounted for over 50% of its total revenue, with significant growth in 2024 [17] - Pop Mart achieved 4.558 billion yuan in IP business revenue, showcasing its success in the commercialization of IP through the blind box economy [12][20] Government Support - The Chinese government has implemented various policies to support the high-quality development of the IP licensing industry, including measures to promote consumption and strengthen intellectual property protection [7][9] Financial Performance - Reading Group's IP business revenue reached 2.2 billion yuan in the first half of 2024, a year-on-year increase of 85% [17] - Pop Mart's overall revenue was 6.3 billion yuan, with a net profit of nearly 1.1 billion yuan, reflecting strong growth from 2019 to 2023 [20] - Alibaba's Aliyu has successfully integrated IP resources and commercial channels, enhancing the monetization of IP [19] Consumer Insights - From 2020 to 2023, the average per capita consumption expenditure of Chinese residents increased from 21,210 yuan to 26,796 yuan, with a CAGR of 8.1% [16] - In 2023, 25.6% of consumers expressed a willingness to significantly increase their budget for IP licensed products, a 7 percentage point increase from 2021 [16] Conclusion - The Chinese IP licensing industry is poised for significant growth, driven by emotional consumption trends, government support, and the international expansion of domestic companies. The competitive landscape is characterized by strong players across the value chain, with increasing consumer willingness to invest in IP products.