Retail volume of licensed merchandise in China reach USD 12.7 bln

—  China Licensing Industry Report 2019 released

 

By Alice Yang

 

As the fifth largest licensing market in the world, China has great potential to grow more impressively. The market is so big that it is always difficult to see into the details. To understand the rapidly growing licensing industry in China, China Toy and Juvenile Products Association (CTJPA) conducted a professional survey and issued the China Licensing Industry Report 2019 earlier this year. It is the only industrial report in the world that focused on China licensing field. And it is the continuous third year that CTJPA publishes such report.    

 

According to the statistics of the Report, the total retail volume of licensed merchandise in China in 2018 reached USD 12.7 billion, 14.6% growth year-on-year. We will share more of the key factors, discovered by the Report, about this big market.

 

 

Profile of licensors in China

 

According to the Report, 412 licensors (26.0% growth y-o-y) were active in the licensing market of China by the end of 2018. And 1,473 properties (42.7% growth y-o-y) and brands had conducted licensing business in China by the end of 2018.

 

The top three popular properties by category were entertainment (59%), Art& Design (16%), and Lifestyle& Fashion (15%). Also, more and more museums join in licensing business thanks to the government encouragement and the market demand. And museum licensing in China is more recognized as in the category of art licensing. The beautiful merchandises created by museums on the sake of art licensing become trendy and fashionable in China, and more high-end consumers prefer to choose those products to identify their life style. 

 

According to the statistics released from Forbidden City, China’s largest museum, their retail volume of licensed merchandise had surpassed USD 223 million in 2017, and the amount of the licensed merchandise reached over 10 thousand SKUs.  Art licensing in China is raising and promising.

 

Chart 1: Properties by category

 

More popular properties in licensing industry come from foreign countries, taking 69% of the whole market share. US, Japan, South Korea and UK are the top four regions. What is worthy to mention, the properties regions are becoming more diversified than before.

 

Chart 2: Properties by regions

 

After over a decade of development, more and more international companies recognize the potential of Chinese licensing market, and they are more willing to enter and explore China market. At the same time, as the licensing market in China growing, more and more Chinese companies realize the importance of brand licensing, and start to explore more possibilities in the business.

 

Profile of licensees in China

 

Licensee companies in China cover many different industries, from traditional toys and apparel to the emerging theme space. Licensee companies have realized the value of properties and are more willing to invest in the licensing business.

 

Overall Chinese licensees are gathered in 16 main industries. And the top 5 licensee industries are toys (17%), apparel (14%), food& beverage (9%), gifts (7%), and theme space (7%).

 

Chart 3: Licensees by industry category