Goods Economy

The ‘Goods Economy’ became a rare bright spot in China’s consumer market last year, as young buyers spent heavily on animation derivatives like cosplay

  

By Lee Shih Ta

China’s consumer market may be weak on the macro level, but that doesn’t mean that young consumers aren’t still looking for little forms of happiness to keep them going.

Last year saw the buzzword “Goods Economy” go viral in China. The Chinese word guzi, a phonetic translation of the English word “goods,” refers to physical products such as badges, dolls, figurines, and cardboard cut-outs derived from two-dimensional intellectual property (IP). Such two-dimensional IPs often center around graphic works, sometimes referred to by the collective title of ACGNC, or animation, comics, games, novels and cosplay.

Costing as little as a few yuan, the value of some such “goods” can reach as much as thousands of times that amount when they’re traded as collectibles on secondary platforms. How hot is this market? According to data from iiMedia Research, China’s “Goods Economy” was worth as much as 168.9 billion yuan ($23 billion) in 2024 and is expected to continue growing to reach 308.9 billion yuan by 2029.

As the Goods Economy develops, the list of lingo surrounding such goods is also quickly growing in tandem. For example, based on the country of their IP origins, “Goods” can be categorized as domestic or Japanese. By categories or materials, they can be classified as badges, dolls, acrylics, paper products and more. Purchasing goods is referred to as “eating goods”, and places where one buys goods are called “goods dining areas” or “goods stores”.

“Eating goods” is not just about buying goods, but is also an act filled with emotional value. Such “goods” become the link connecting the ACGNC and real worlds, bringing spiritual comfort to “goods eaters” in their bitter and boring daily lives.

The Goods Economy was clearly one the biggest surprises on China’s consumer landscape in 2024. A Goods Economy Index of domestically traded Chinese stocks compiled by data provider Wind has been rising steadily since last July, up 35% by the end of the year. On the Hong Kong stock market, meanwhile, shares of Pop Mart (9992.HK), a maker of trendy collectible toys, rose 3.5 times in 2024, while shares of rival retailer and collectible seller Miniso (MNSO.US; 9896.HK) rose by a smaller 10%.

Most recently, Bloks Group (0325.HK), a maker of toys based on licensed IP from big names like the Ultraman and the Transformers series, launched a Hong Kong IPO earlier this month. The stock was 6,000 times subscribed, with investors putting up a staggering HK$877.4 billion ($113 billion) for a chance to buy the stock, making it the third most oversubscribed stock in the Hong Kong Stock Exchange’s history. Clearly, ACGNC is also creating excitement in capital markets.

From a broader industry perspective, the Goods Economy is actually nothing new. People who were born in the 1990s or after the 2000s are more willing than earlier generations to pay for products that improve their mood and play to their interests. As these young people gain consumption power, markets they favor rise in sync with their rising purchases. As their numbers grow, the number of consumers in China’s ACGNC industry reach 490 million in 2023, according to a white paper on the industry.

Many observers expect the market to keep growing, with more players entering and capital arriving in search of profits, and more IP being licensed for development to satisfy appetite for ever more “goods.”

Lee Shih Ta is an editor at Bambooworks.

You can contact him at shihtalee@thebambooworks.com

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