This summer, the story of the little monsters from Langlang Mountain resonated deeply with audiences. Alongside the film's popularity, IP-related merchandise such as the little pig monster and the gorilla monster has become trendy items among young people.
In recent years, the "IP economy" has developed rapidly by precisely meeting consumer demands, with some well-known IPs gradually breaking out from niche interest circles.
According to a report by iMedia Consulting, as cultural consumption levels rise and market demand expands, the global trend of distinctive anime IPs has become evident, giving rise to industries like "merch economy." Data shows that China's IP derivative market reached 174.2 billion yuan in 2024, with a compound annual growth rate of 15.1% from 2020 to 2024, significantly higher than the global average.
The Booming "IP Economy"
On August 2, the animated film Little Monsters of Langlang Mountain, adapted from the IP Yao-Chinese Folktales: The Little Monster's Summer, was released. Given its humorous style and the inspirational message of ordinary characters daring to dream big, institutions generally expect strong box office performance.
IP, or intellectual property, also known as intellectual achievement rights, encompasses copyrights, patents, and trademarks. With societal and industrial evolution, IP has further gained the connotation of a cultural asset with inherent traffic and commercial potential.
Some IPs have gone viral due to their strong emotional connection with consumers. For example, China's first 3A game Black Myth: Wukong sparked unprecedented discussion domestically and internationally. The Spring Festival hit Ne Zha 2: The Devil's Birth (hereinafter Ne Zha 2) not only topped China's box office and attendance charts but also led the global animation rankings. Pop Mart's LABUBU 3.0 series of vinyl plush toys became a sensation worldwide.
During summer vacation, children often gather at stores of trading card operator KAYOU in shopping malls for lively exchanges. KAYOU's management believes offline consumption scenarios effectively combine cultural landmarks with experiential products, offering diverse experiences and emotional value to consumers, thereby boosting spending. Meanwhile, China's anime industry can showcase the cultural appeal of original Chinese IPs and the quality of pan-entertainment products globally through physical merchandise.
What Makes an IP Suitable for Full-Chain Development?
Bilibili's IP operations and licensing director, Chaxian, noted that such an IP must have solid copyright and value foundations, along with a story framework that resonates with societal trends.
Hong Tao, Vice Chairman of the China Association of Consumer Economics and Director of the Business Economics Institute at Beijing Technology and Business University, told the Shanghai Securities News that China's original IPs are transitioning from "product exports" to "content dissemination," from "one-way output" to "collaborative creation," and from "mass replication" to "value customization."
Listed Companies Focus on IP
A 2025 report on the global and Chinese IP derivative industry highlights that the IP derivative supply chain starts with IP creation and licensing (upstream), followed by product development (midstream), and multi-channel sales (downstream).
Huang Xiaofeng, Deputy General Manager of Shangying Yuan, stated that Yao-Chinese Folktales aims to be a platform IP—a hub for Chinese-style stories, quality content, and creative talent, ultimately forming a robust content ecosystem. The long-term value of an IP depends on operational capabilities and the cultural-emotional bond with users.
Besides Little Monsters of Langlang Mountain, another summer hit, The Legend of Hei 2, is also a popular IP. Yang Ruizhi, COO of Chinese Online (300364), attributed its success to its universally appealing cat character design, emotional resonance with contemporary anxieties, and consistent warm, healing themes in derivatives.
Light Chaser Animation, the main investor behind Ne Zha 2, revealed collaborations with brands like Pop Mart for IP licensing, covering most "merch" products. The company is undergoing a historic shift from a "premium content provider" to an "IP creator and operator." According to Capital Securities, blockbuster animations often generate IP revenues ten times their box office earnings.
Several domestic IP operators have achieved profitability, secured funding, or planned listings. For instance, ShiningSoul, a 2023-founded文创 brand under Shanghai Zhenyouqu Culture Technology, recently completed a hundreds-of-millions-yuan funding round. In May, 52TOYS filed for a Hong Kong IPO, while Blue Zoo listed earlier this year.
Cultural firms are also building their own IPs. For example, New Third Board-listed Swemedia debuted its original IP "Shizai" at the Shanghai Book Fair, aiming to transition from a "third-party IP文创周边 creator" to a "self-owned IP ecosystem builder."
Policy Support Expands Opportunities
Central and local policies this year have further fueled the "IP economy." Examples include the Action Plan to Boost Consumption issued by the central government in March, Guangdong's Measures to Promote High-Quality Development of Animation and Film in May, and Shanghai's Initiatives to Support High-Quality Online Content in July. These policies support原创IP development and derivative products.
Huaxi Securities (002926) predicts that rising incomes, leisure time, and generational shifts will drive the IP market to trillion-yuan scale. However, leading firms must innovate in emotional design, cross-media development, and global expansion while avoiding over-reliance on单一IPs or content stagnation.
