July 2025 - In a landmark shift for the global licensing industry, China's IP-licensed retail market vaulted past RMB 155 billion (roughly USD 22 billion) in 2025, officially claiming the No. 4 spot worldwide. This milestone reflects China's evolution from an IP consumer powerhouse into a hotbed of homegrown IP innovation-setting the stage for new business opportunities in shopping malls, family-entertainment centers, and pop-up experiences across North America, the Middle East, and beyond.
A Fast-Rising Market Joins the Top Ranks
According to the 2024 Licensing International report, China's licensed-retail sales reached USD 13.77 billion in 2023-up nearly 10 percent year-on-year-placing it just behind the United States, Europe, and Japan. Projections for 2025 now eclipse RMB 155 billion, a meteoric rise that underscores the country's appetite for character-branded merchandise and immersive brand experiences.
The Labubu Effect: How Pop Mart Redefined IP Retail
No story better illustrates China's IP boom than Pop Mart's Labubu series:
• Explosive Growth: Labubu revenues soared 106.9 percent in 2024 to RMB 13.04 billion.
• Global Reach: After launching Labubu 3.0, sales in Southeast Asia jumped over 600 percent, while TikTok-driven campaigns fueled rapid uptake in North America.
• Trend-Driven Innovation: Limited-edition drops, local cultural collaborations, and timed "unboxing" events turned Labubu into a viral phenomenon-often selling out new collections within minutes.
These tactics drove China's trend-toy segment to an estimated RMB 60 billion in 2023, with forecasts predicting RMB 110 billion by 2026 at a 20 percent annual growth rate.
What's Behind the Surge? Three Key Drivers
1. Policy & IP Protection
Government support for cultural innovation and stronger copyright enforcement have given creators and licensors the confidence to invest and expand.
2. Gen Z & Consumer Upgrades
Younger shoppers demand personalized, emotion-driven brand encounters. They're willing to pay premiums for IP they love-turning character tie-ins into cash cows.
3. Digital & Social Amplification
Live-stream product launches, TikTok partnerships, and official apps accelerate IP reach. Social media buzz transforms fans into global advocates overnight.
New IP Categories Poised for Growth
• Blind-Box Collectibles: The "surprise economy" remains red-hot; malls and airports are installing towers of blind-box dispensers.
• High-End Figurines: Licensed statues and resin figures are fueling secondary-market collectibility and collector events.
• Lifestyle Merchandise: Fast-fashion drops and IP pop-ups are engaging new demographics eager for on-trend apparel and home décor.
• Digital-Physical Hybrids: QR-code unlocks, AR filters, and metaverse integrations are redefining the next generation of IP consumption.
Global Expansion & White-Space Opportunities
Major IP retailers like Miniso and Pop Mart have already planted flags in New York's Times Square and Tokyo's Harajuku district. Yet vast markets in the Middle East, Southeast Asia, and Latin America remain under-served, with local operators hungry for turnkey IP-retail solutions.
Our Value for IP-Retail Partners
As a leading amusement-machine manufacturer, we help brands turn IP into interactive experiences that drive sales and foot traffic:
• Custom Hardware & Theming: We skin claw machines and capsule dispensers with your IP's unique colors, characters, and lighting effects-ensuring brand consistency and visual impact.
• Turnkey IP Packages: From prize sourcing and merchandising kiosks to interactive photo booths, we deliver end-to-end solutions ready for pop-up activations or permanent installations.
• Smart Operation Tools: Our IoT-enabled platforms offer remote health monitoring, cashless payment integration, and real-time analytics-so you optimize inventory and promotions effortlessly.
