"Playing with Journey to the West" Drives the National Trend IP, Detailing Economic Benefits and Industrial Engine
Guochao (China-chic) IPs are reshaping China's economic landscape at an unprecedented pace. Data shows that the market size of China's Guochao economy grew from 1.2 trillion yuan in 2018 to 2.3 trillion yuan in 2024, and is expected to exceed 3 trillion yuan by 2028. This wave not only creates considerable direct economic value but also demonstrates profound multi-dimensional influence through industrial chain extension, consumption pattern transformation, and cultural heritage innovation.
Phenomenal IPs exhibit astonishing commercial explosive power. In 2025, the annual revenue of the series belonging to the IP "LABUBU" under Pop Mart (09992.HK) $POP MART(09992.HK) reached 14.16 billion yuan, a year-on-year increase of 365.7%, becoming the first domestic IP with annual revenue exceeding 10 billion yuan. The film "Nezha: The Devil Boy Descends upon the Sea" topped the Chinese box office with 14.965 billion yuan, and its IP licensing and peripheral products are expected to generate 10 to 15 billion yuan in derivative revenue. In the trendy toy manufacturing sector, about 85% of China's trendy toys are produced in Dongguan, which hosts over 4,000 toy enterprises. Independent Guochao IPs can boost enterprise profit margins to 30% to 60%. Furthermore, the "Guzi Economy" (anime derivative goods) market size reached 168.9 billion yuan in 2024, growing over 40% year-on-year, confirming the strong monetization capability of Guochao IPs from content to physical products.
Guochao IPs are shifting consumption from "purchasing goods" to "acquiring experiences." Research shows that 72.9% of consumers engaged in Guochao consumption in the past year, with 80.7% choosing Guochao products due to their fondness for traditional cultural elements. After the launch of "Black Myth: Wukong," its filming location, Shanxi, received over 5 million tourists within two months; the National Museum's "Phoenix Crown Fridge Magnet" sold over 2 million units within a year of launch. Young people express their cultural identity by purchasing IP derivatives. Their consumption behavior has transcended functional needs, carrying distinct cultural identity, which is the concrete manifestation of Guochao evolving from a trend to cultural confidence.
In this Guochao wave, the role of the younger generation is crucial. The "Journey to the West Cosplay Carnival" organized by the Hong Kong-China New Generation Foundation is a vivid example. It is more than just a performance; it provides a learning platform for youth to immerse themselves in Chinese culture. While shaping characters and designing costumes, participants not only deepen their understanding of Chinese classic stories and cultural connotations but are also exposed to modern business concepts such as intellectual property rights, IP maintenance, and cultural marketing, cultivating practical skills and broadening their horizons. This vitality echoes the globally sweeping "Guochao" culture - it is not merely superficial Chinese-style design, but the integration of profound Chinese cultural heritage, the spirit of the times, and innovative thinking, transforming into contemporary cultural expression and consumption experiences.
From a business perspective, the rise of the "Guochao trend" presents significant opportunities. Hong Kong has long possessed the advantages of "blending Chinese and Western cultures, being flexible and innovative," which naturally aligns with Guochao. The nation explicitly supports Hong Kong's development as a "center for international cultural and artistic exchange" and a "regional intellectual property trading center." This means Hong Kong is absolutely positioned to create greater modern commercial value for Guochao brands and classic Chinese IPs, even becoming a key driver in propelling them onto the world stage.
In summary, Guochao IPs have evolved from a cultural phenomenon into a new engine for economic growth, with youth participation and cultural inheritance injecting it with continuous vitality. Future competition will focus on the endurance of IP operations, the depth of cultural narratives, and technology-enabled virtual-physical integration experiences. The Hong Kong-China New Generation Foundation continues to promote diverse learning, innovation, and entrepreneurship among young people, helping Guochao IPs unleash long-term value through inheritance and innovation, truly integrating the industrial ecosystem into economic benefits.
Written by: Professor Li Huifen, Greater Bay Area Family Office Association
(I do not hold the above-mentioned stocks)
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