Guotai Junan Securities: Emotion-driven consumption trend, rapid growth in the IP entertainment industry.

Guotai Haitong Securities research report believes that emotional consumption is on the rise, and the IP interesting play industry is growing rapidly. IP interesting play food combines "IP + food + IP gifts". IP interesting play food includes collectible cards, stickers, badges, figurines, and edible toys in various forms. As an efficient vehicle for IP monetization, IP interesting play food can provide entertainment through IP stories and collection mechanisms, satisfying consumers' emotional needs for "self-indulgent consumption". The scale of China's IP food industry is growing rapidly. The reasons for the rapid growth of the industry are: 1) on the demand side, the younger generation grew up in a time of material abundance and open information, and the demand for emotional consumption continues to rise. IP satisfies consumers' multi-level needs for identity identification, emotional companionship, and aesthetic resonance through stories, images, and emotional connections; 2) on the supply side, China is the largest snack country, and the snack production and supply industry chain is mature. In recent years, benefiting from the rise of large-scale distribution channels, the IP interesting play track combining IP gifts with snacks has grown rapidly.