Illustration: Liu Rui/GT

China's fast-growing goods economy and intellectual property (IP) industry, amid the nation's economic high-quality transition and consumption upgrade in recent years, have fostered the rise of domestic IPs with increasing value, and industry players are now focusing more on international markets and collaborations.

Amid this boom, the 2025 International Cultural IP Industry Development Conference will be held in Shanghai on Friday and Saturday. Themed IP Without Borders, Smart Innovation for the Future - Exploring the Global Integration of Cultural IP and Technology, the conference aims to promote the high-quality, internationalized, and branded development of China's cultural IP industry. 

The focus on high-quality development and international cooperation in this expanding sector reflects new trends that are closely linked to China's overall consumption upgrade, with increasing domestic cultural IPs emerging as an important economic driver that is beginning to outpace foreign IPs in the Chinese market.

China's goods economy - including physical products, collectibles, and consumer goods - along with IP-driven sectors such as animation, games, virtual IP, and brand collaborations, has seen strong growth in recent years.

Last year marked a robust growth period for goods consumption, with annual transactions surging 105 percent year-on-year. In the first quarter of 2025, goods transactions hit historic highs, with Japanese IP merchandise declining while domestic IP surged past it, according to the 2025 goods trend report by Alibaba's e-commerce app Xianyu.

This trend is further reflected in the rise of character-based merchandise, including toys and collectibles from animated films, games, and idol franchises. From the overseas popularity of Pop Mart's trendy toy Labubu to the international attention garnered by the Chinese animated film Nezha, Chinese IPs and related products are increasingly gaining recognition abroad.

For example, as of October 31, three months after the release of the Chinese film Little Monsters of Langlang Mountain, sales of its related merchandise goods exceeded 3.2 million units, according to industry research company iimedia.cn. The film's success underscores the enduring vitality of classic Chinese culture in the modern era and demonstrates how domestic animation IPs can generate high added value, drive economic growth, and hold strong potential in the global market.

Amid this shift toward high-quality growth in China's broader economy, emerging sectors such as trendy collectibles and goods see more value being added by creative IP and design, relatively low production costs, rapid product iteration, and emotion-driven consumption, all of which fuel accelerated growth. This shows that the new competitiveness of Chinese goods stems from the combination of its robust industrial and innovative cultural ecosystems.

Pop Mart exemplifies this model: its third-quarter overseas revenue grew 365 to 370 percent year-on-year, with year-on-year growth exceeding twelvefold in the Americas and more than sevenfold in Europe, according to stcn.com. 

The broader market trajectory also reflects strong optimism: China's goods economy is expected to maintain sustained growth, with the overall market projected to exceed 300 billion yuan ($42.8 billion) by 2029, according to the Xinhua News Agency. 

From the rise of the goods economy to the boom in trendy collectibles, China's IP industry and goods economy still boast great potential to become a stronger engine for consumption growth. China has developed into a key global market for IP retail, gradually shifting from being an industry follower to an innovation leader.

Admittedly, the domestic IP sector is still not strong enough on the global stage. Overall influence, international recognition, and brand visibility remain areas where domestic players need to further innovate. Addressing these gaps and enhancing cross-border collaborations are now core priorities for the sector, ensuring that Chinese IP can compete effectively in an increasingly interconnected market.

China's younger generation plays a central role in this process. Its consumption preferences, which are increasingly emotion- and identity-driven, are beginning to exert growing influence on global markets. In a context of globalization and digital transformation, the growth and innovation of China's IP sector will also strengthen China's cultural soft power internationally.

The rise of China's goods economy and cultural IP industry illustrates how culture can drive economic value. By combining creativity, high-quality production, and strategic global engagement, domestic IPs are reshaping consumption patterns, empowering economic growth, and positioning China as a key player in the global cultural marketplace.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn