THE CHINESE LICENSING MARKET IS DIVERSE AND IMMEDIATELY LUCRATIVE

BrandTrends Group unveils some major findings from its most recent research, and some key facts can be extracted when compared to the previous three years.

China is a vast country with a rich history and culture, which often baffles visitors with its unique and intriguing customs.

Where local properties hold the leading spots

fan bases to increase its own brand recognition.

About Brandtrends Group

The BrandTrends Group is a premier provider of market research and consulting services, focusing on brand, lifestyle, and attitudinal trends, with a particular emphasis on children, youth, and families. Their team of experienced researchers and analysts is dedicated to helping businesses, organizations, and individuals stay ahead of the curve in the constantly changing market landscape.

They conduct extensive monitoring in up to 53 markets annually, providing their clients with in-depth knowledge, expertise, and unique, proprietary analytics to identify the best opportunities in retail activation, consumer attitudes & behavior, competitive environment, and brand line design. The BrandTrends Group works with renowned global companies across a variety of industries, including consumer package goods corporations, entertainment studios, retailers, and industry bodies. To learn more, visit www. brandtrends.com.

If you would like more information about this topic, please contact Philippe Guinaudeau - BrandTrends at philippe.guinaudeau@ brandtrends.com.

For instance, did you know that China has the world’s largest high-speed railway network, covering over 22,000 miles and serving more than one billion passengers annually? Or that the country has over 56 ethnic groups, each with its own language, customs, and traditions?

But beyond its rich history and customs, China also boasts a thriving licensing market.

A unique market

But beyond its rich history and customs, China also boasts a thriving licensing market. According to the latest BrandTrends Entertainment reports, the top licensed properties in China include LEGO, Boonie Bears, Pleasant Goat and Big Big Wolf and Doraemon, among others. This market is characterized by a diverse range of popular brands, including local and international properties.

China’s licensing market is unique, with its own peculiarities and characteristics. One of the key factors driving the licensing industry in China is the country’s rapidly growing middle class. As more people join this demographic, there is an increased demand for high-quality, premium products, which presents a significant opportunity for brands to expand their reach in this market.

Additionally, China has a strong ecommerce culture, with many consumers preferring to shop online.

As a result, digital licensing and merchandising have become increasingly popular in China, providing an excellent avenue for brands to reach a wider audience.

The BrandTrends Group report shows that LEGO is currently the most popular licensed property in China, with a Brand Popularity Index (BPI) of 51 among kids aged 3 to 14. However, there’s an interesting trend in China’s licensing market with the increasing popularity of local brands, like Boonie Bears, Pleasant Goat and Big Big Day or GG Bond. These brands appeal to Chinese consumers’ sensibilities, resonate with their culture and values, and have a significant presence in China. Boonie Bears’ popularity in China can be attributed to several factors. Firstly, the series is produced locally and features relatable characters and themes that are familiar to Chinese culture. Additionally, the brand has been heavily marketed and promoted through various channels, including television, social media, and merchandising.

Since its debut in 2012, Boonie Bears has become one of the most successful animated series in China. Its success has been further enhanced by collaborations with other popular franchises, such as Transformers and Ice Age. In 2016, Boonie Bears teamed up with Transformers for a joint project titled “Boonie Bears and the Big Top Secret,” which grossed over 100 million yuan at the box office. Similarly, in 2019, Boonie Bears collaborated with Ice Age to produce “Boonie Bears: Blast into the Past,” which grossed over 430 million yuan.

These collaborations allowed Boonie Bears to expand its reach and appeal beyond its core audience and attract fans of the Transformers and Ice Age franchises. Additionally, the collaborations helped Boonie Bears tap into the popularity of these well-known franchises and leverage their established

Bonnie Bears is currently the second most popular brand in China, while GG Bond and Pleasant Goat and Big Big Day follow suit. However, the popularity of the latter seems to be declining among kids aged 3 to 14.

Growing presence of videogame properties

In addition to the Chinese properties, there is a growing presence of video game properties in China’s licensing market.

According to the BrandTrends Entertainment reports, several video game brands, including League of Legends, Player Unknown’s Battlegrounds, Plants vs. Zombie or Minecraft are among the top licensed properties in China. This indicates the growing penetration of digital devices and video games in the lives of Chinese children aged 3 to 14, and their increasing preference for digital entertainment.

Ownership and Licensing Opportunities

The Chinese market’s appetite for licensed products is growing rapidly. Indeed, Chinese consumers have a strong affinity for licensed products, thanks to their increasing disposable income, exposure to Western culture, and desire for high-quality, branded products!

The chart below clearly demonstrates a strong relationship between a brand’s popularity and the intentions to purchase licensed products based on it. The top-performing brands, such as LEGO, enjoy both high popularity and strong demand for licensed products among Chinese kids aged 3-14. This can be attributed to the brand’s successful marketing strategies, strong brand recognition, and its ability to offer a wide range of products across various categories.

However, the second most popular brand, Boonie Bears, doesn’t receive the same level of purchase intentions despite its popularity among Chinese kids. One of the main reasons for this is the lack of products available in stores, particularly across different product categories. This presents an opportunity for other properties to capitalize on the high traffic generated by the brand’s popularity and the strong demand for licensed products among Chinese consumers. Marketing professionals should take note of this trend and develop strategies that cater to the high demand for licensed products in China, particularly those associated with popular brands like Boonie Bears. By ensuring the availability of products across different categories, businesses can take advantage of the traffic generated by these popular brands and achieve substantial growth in the Chinese market. As the Chinese market continues to grow and evolve, businesses that can effectively tap into the demand for licensed products will be well-positioned for success.

The Chinese licensing market is diverse and immediately lucrative China is a thriving and unique Licensing market with a diverse range of local and international properties. The country’s rapidly growing middle class and strong e-commerce culture make it an attractive market for brands to expand their reach. Furthermore, the growing popularity of local brands, such as Boonie Bears, highlights the importance of cultural relevance and strategic collaborations in capturing the attention of Chinese consumers. In addition, with the penetration of digital devices among Chinese kids, the licensing market presents great opportunities for companies to develop and expand their reach. Not to mention the low presence of international superhero brands in China, that calls for brands to develop and market products that resonate with the local culture.

To make the most of China’s licensing market, companies should consider the following directions:

• Develop culturally relevant products: Brands that successfully tap into Chinese consumers’ cultural sensibilities and values are more likely to gain traction in the market.

• Form strategic collaborations: Strategic collaborations with popular franchises, as seen in the case of Boonie Bears and Transformers or Ice Age, can help brands tap into the popularity of well-known franchises and leverage their established fan bases to increase their own brand recognition and expand their reach.

• Embrace digital licensing and merchandising: Developing digital products such as mobile games, apps, and e-books can be a lucrative opportunity to capture the attention of techsavvy Chinese consumers.

With strategic collaborations, culturally relevant products, and a focus on digital licensing and merchandising, international and national brands can unlock the lucrative potential of this thriving market.

With strategic collaborations, culturally relevant products, and a focus on digital licensing and merchandising, international and national brands can unlock the lucrative potential of this thriving market.

About the Report

The current report provides a detailed analysis of brand awareness, popularity, and purchase intent of the most important Entertainment brands within a country.

The most crucial aspect is that it predicts product category purchasing intentions. The service reports on 11,500+ different Entertainment, Fashion, or Sports brands four times a year, and interviews 200,000+ people ranging in age from infants to seniors in 42 countries, including China.

Notes:

1. The likelihood of consumers purchasing a licensed item associated with a popular entertainment property is strongly correlated with that property’s popularity,

2. Prime candidates for successful commercialization are on the right of the chart.

3. Less likely to appeal to consumers compared to the top players are on the left side of the chart.

4. Brands above the line have less merchandise potential than their popularity would indicate. These are typically the brands with limited products in the shelve-space,

5. Brands below the line have greater merchandise potential than its popularity would indicate. These are typically those long existing brands, part of the regular shelve-space.