By Philippe Guinaudeau

In a remarkable display of national pride, China’s animated film Ne Zha 2 has shattered global box office records, earning over RMB 12.4 billion (approximately $1.7 billion) in just a month. This unprecedented success is not just about entertainment—it signals a deep-rooted shift in consumer preferences, where domestic brands are gaining momentum over foreign ones. This evolution is key to understanding China’s licensing market, a highly competitive but rewarding landscape for marketers looking to capitalize on branding and intellectual property.

A Giant with Growing Inclusivity

China’s licensing market is both vast and concentrated. Children in top-tier cities recognize an average of 328 different entertainment brands, an increase from previous years. While the market is fiercely competitive, the top five brands alone account for 25.7% of total brand mentions, indicating a high level of consolidation at the top.

At the same time, the market is becoming more inclusive. Over 68% of entertainment brands are recognized by both boys and girls, a figure that has been growing in recent years. Gender-exclusive brands still exist, but boys’ exclusive brands slightly outnumber those exclusive to girls (17% vs. 14%). This shift suggests that brands appealing to both genders have a higher chance of long-term success.

According to Philippe Guinaudeau, CEO of BrandTrends, “The Chinese licensing market is evolving rapidly, driven by a mix of global influences and strong domestic brands. The ability to localize and embrace cultural narratives is now a key success factor for brands looking to establish a long-term presence in this dynamic landscape.”

Global Giants vs. Local Powerhouses in the Battles of Brands

The Chinese licensing market presents a unique blend of international and local players. While global giants like LEGO, Disney, and Marvel dominate, homegrown brands such as Boonie Bears, Pleasant Goat and Big Big Wolf, and Honor of Kings remain strong competitors.

International brands excel in categories such as toys, superheroes, and Western storytelling, while local brands dominate animation and gaming. Classic Chinese mythology, such as Journey to the West, continues to hold cultural significance, especially among female audiences. This mix of global and local preferences creates both challenges and opportunities for new market entrants.

Most Favorite Entertainment Brands

China – Children 0 to 14 years old

Market Leaders: LEGO & Disney

LEGO (15.8%) is the most popular entertainment brand in China, with near-equal appeal across both genders. Disney follows closely at 11.7%, also maintaining a gender balance. Their success stems from their ability to cater to diverse interests through storytelling, character diversity, and adaptable product lines.

Male Preferences: Action & Superheroes

Male consumers in China prefer action-packed franchises and superheroes. Leading male-dominated brands include:

• Spider-Man (15.3% Male, 5.2% Female)
• Ultraman (14.5% Male, 3.7% Female)
• Marvel (7.5% Male, 4.4% Female)
• Transformers (4.6% Male, 0.9% Female)
• Naruto (2.9% Male, 0.2% Female)

Competitive gaming brands such as Honor of Kings and One Piece also attract a primarily male audience.

Female Preferences: Fairy Tales & Soft Storytelling

Female consumers gravitate toward classic fairy tales, fantasy, and gentle storytelling. The top female-dominated brands include:

• Frozen (7.3% Female, 0.2% Male)
• Snow White (7.5% Female, 1.9% Male)
• My Little Pony (6.2% Female, 1.4% Male)
• Barbie (5.8% Female, 1.2% Male)
• Journey to the West (7.6% Female, 2.2% Male)

Interestingly, Chinese mythology remains a strong factor in female brand preferences, showing that cultural heritage continues to shape brand loyalty.

Chinese Animation Rises to Challenge Disney

Local animated franchises have grown in popularity, competing directly with Western brands.

• Boonie Bears (6.8%) and Pleasant Goat and Big Big Wolf (6.3%) are leading domestic brands.
• Emerging players such as GG Bond (3.3%) and Super Wings (3.7%) are also gaining traction.
• These brands combine cultural familiarity with educational value, making them appealing to Chinese families.

Gaming: A Market with Balanced Appeal

Gaming continues to grow in China, attracting both male and female audiences.

• Honor of Kings (3.3%) is one of the most balanced gaming brands, with near-equal appeal across genders.
• Casual and social gaming is rising, helping bridge the gender gap in this sector.

Nostalgia & Mythology: A Key Consumer Influence

Nostalgia plays a crucial role in brand preference. Traditional Chinese stories like Journey to the West and fairy tales like Snow White remain beloved, highlighting that consumers appreciate both cultural heritage and global storytelling.

Winning in China’s Licensing Market

With such a competitive yet evolving market, what are the key opportunities for brands looking to enter or expand in China?

1. Leverage Inclusivity: Brands that appeal to both genders, like LEGO and Disney, have proven to be highly successful. Creating products with broad appeal can increase market penetration.
2. Localize Content & Storytelling: Chinese consumers value content rooted in their own culture. Local adaptations of international brands or leveraging Chinese mythology in marketing strategies can enhance brand relevance.
3. Capitalize on the Rise of Domestic Animation & Gaming: China’s homegrown entertainment brands are on the rise. Investing in local partnerships or licensing domestic intellectual property (IP) can be a winning strategy.
4. Target Competitive Gaming Audiences: While still male-dominated, casual and social gaming is drawing more female players. Marketers can create more inclusive gaming experiences to reach a broader audience.
5. Utilize Nostalgia as a Marketing Tool: Chinese consumers hold a deep connection to nostalgic and mythological content. Brands that integrate elements of cultural storytelling into their marketing will have an advantage.

China’s licensing market is a fascinating blend of international influence, domestic strength, and evolving consumer preferences. While the market remains highly competitive, opportunities abound for brands that understand the nuances of inclusivity, cultural adaptation, and market trends. As Chinese audiences continue to embrace homegrown brands and nostalgic content, companies that strategically position themselves within these dynamics will find success in one of the world’s largest licensing landscapes.