99% of Brand IPs in China Don’t Survive a Year, Reportedly

The scale of the problem

It has been reported that China’s rush to "make IP" is producing an enormous corpse pile. Huxiu, citing a 2025 white paper from iiMedia Research (艾媒咨询), says more than 90% of newly launched intellectual properties (IPs) vanish from the market within six months and 99% fail to make it past a year. Reportedly over 2,000 brands launched their own IPs or co‑branded characters in the past year alone. Why do so many mascots die so quickly?

Why the churn is so brutal

Brands have turned to cute characters and licensed heroes to squeeze emotional value out of a saturated market as internet traffic growth and traditional marketing ROI slow. But many projects are surface‑level: a pretty face, a few merch drops, and a short burst of PR. It has been reported that licensing fees have ballooned—for example, fees around the hit film Nezha (哪吒之魔童闹海) surged from roughly RMB 5 million to RMB 9–12 million—and IP licensing can account for roughly 30% of downstream retail prices even as production costs remain a small slice. The result: expensive one‑off campaigns that leave no emotional connection and little repeat purchase behavior. One unnamed appliance brand reportedly spent millions on an anime license and watched co‑branded refrigerators and washing machines flounder; it was later quietly delisted.

Lessons from winners and what brands get wrong

Not every IP experiment fails. Overseas stalwart Disney and Chinese players such as Pop Mart (泡泡玛特) and Miniso (名创优品) show that longevity comes from ecosystems, stories and user participation—not a single ad push. Pop Mart’s Labubu and Molly, for instance, live in fan communities and inspire secondary creation, helping sustain multi‑year repurchase rates; Miniso’s PENPEN has been positioned for overseas audiences rather than fleeting hype. By contrast, many Chinese brands treat IP as a “skin”—a decoration detached from product function and brand values. The white paper’s headline statistic is a blunt reminder: an IP that doesn’t help sell better product or weave into ongoing narratives will likely be a short‑lived expense.

A pragmatic conclusion

For Western readers unfamiliar with China’s consumer playbook: this is not merely about cute designs. It’s a cautionary tale about strategy in a constrained attention economy. Reportedly, firms that view IP as a long‑term investment—integrated with product, storytelling and community—stand a chance of bucking the 99% fate. Those that don’t should expect most of their mascots to be forgotten by next season.