The IP creations for Animation is growing in China


Chinese companies are slowly moving away from servicing work to IP creations. Not only they are interested in IP creations for their own domestic markets. More and more are looking for overseas partners to learn how to create content for the global market. Though they have started much later than most Asian countries. In terms of learning how to monetize their IP and gain knowledge in licensing & merchandising, they have caught up very fast. In fact, I would say faster than some Asian countries like us who has started even way before them. With their huge capital, population and box office, I anticipate that they will slowly catch up with US. Or might even replace their position eventually.

There is a potential that some of them can become the next Mattel or Hasbro in the East. Or even Turner or Disney who has the entire eco system. Some of the big players already have their own TV stations, Film Production Company, Distribution Network, Toy Manufacturing Arm, Games Companies, Themeparks etc.

The Themepark owners, Toys Manufacturers and Computer Games Companies are especially the ones most interested in IP creations and learning how to globalize it.

I see a trend of them setting up a pre production arm in LA to tap on the best talents there. Or they will buy over good IP from overseas. Then slowly looking at outsourcing their productions to cheaper countries. So that they will focus on IP management, licensing / merchandising and stay at the top of the value chain.

Currently there are still companies who are willing to learn how to globalize their IP. Initially I was estimating maybe in another 5 years time, they probably already learn all they need and will be independent enough to operate on their own. In 5 years time, they might already have the entire value chain setup. But looking at the rate they are progressing, I think maybe another 3 years (Not 5 years anymore) they will be ready and will NOT need others help anymore. So if you are heading to China for opportunity. I say, it has to be NOW or NEVER.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s