After topping up the game and then buying the character goods, my pocket money is not enough again. | Game Market Observation

Written by Feng Min 

Edited by Liu Shiwu 

It has been more than half a month since the "Double Eleven".

With the conclusion of the most significant round of the shopping festival cycle in 2024, the sales lists of major e-commerce platforms have also been released one after another. After the carnival aftermath, the game IP economy behind the list rankings has become a hot topic of discussion.

Data source: Tmall

During this Double Eleven, the ranking of trendy toy stores and IPs is not only a direct presentation of consumer spending power but also conveys the needs and voices of consumers. From best-selling products to popular brands, from trend trends to new consumer favorites, behind every name on the list is the competitive pursuit of the game industry and a visual manifestation of the prosperity of IP construction.

The consumption touchpoints of game IPs are undergoing changes

In the IP value list of Taobao Tmall Double Eleven, many game IPs such as Honkai Impact 3rd, Love and Deep Space, Code: Wildfire, and Light and Night are among the top. It is worth noting that the proportion of female-oriented game IPs in it exceeds half. If the "instant sold out" of the national peripheral of "Black Myth: Wukong" proves the purchasing power of men, then the presence of multiple female-oriented games on the Double Eleven IP value list is a visual display of the purchasing power of women.

Data source: Tmall

"Games rely on men, and e-commerce relies on women" seems to be the common perception of the public. According to previous publicly available statistics, 80% of game revenue comes from men and only 20% comes from women. Therefore, the male market has become the target of competition among major game manufacturers.

But at the same time, with the annual increase in women's disposable income, women's consumption is gradually becoming a new consumption touchpoint, showing huge market potential. In this context, female-oriented games that serve the she economy are rising rapidly. Since 2018, the proportion of female players in major games has increased significantly, and "female-oriented games" have also become an emerging popular track at present.

According to the game revenue data in the first half of 2024, among the recently launched female-oriented games, "Love and Deep Space" achieved a global revenue of more than 1.6 billion yuan in the first half of the year alone, while another new game, "Beyond the World", also ranked at the top of the list with a revenue of 685 million yuan in half a year. The excellent results reflect the huge changes in the player group and content creation. Due to the differences in the game content needs of female players from male players, the expansion of the proportion of female players will inevitably give rise to new consumption hotspots.

The expansion of the game industry into the "female-oriented track" leads to the subdivision of consumption directions

The rise of female-oriented games and the arrival of the IP value expansion trend mean that the era when various game IPs only crazily focus on in-game payments has passed.

Unlike most male players' ultimate pursuit of the "pleasure" in the game process, female players pay more attention to the positive emotional feedback brought by the game. Therefore, various game peripherals have thus become their main battlefield for consumption. From brooches, stickers, to various blind boxes, clothing, and cotton dolls, they can all become the carriers of their love for the in-game characters.

Cotton doll of "Love and Deep Space" peripheral

The "Research Report on the Development Status and Prospects of Chinese Game IP Derivatives" released by the Game Working Committee of the China Audio-video and Digital Publishing Association shows that the market size of Chinese game IP derivatives reached 4.06 billion yuan in 2023, with a compound growth rate of 17% from 2019 to 2023. Nearly 50% of IP users come into contact with the IPs they like now through peripheral products. The user conversion effect of peripherals is second only to advertising, showing the potential to become another important user conversion channel. The market potential of game IP derivatives is worthy of attention.

Judging from the 2024 Double Eleven list, the competitiveness of derivative products of games such as MOBA, open-world RPG, MMORPG, and competitive shooting still has a large room for improvement.

With the continuous improvement of the public market's acceptance and awareness of games, players' enthusiasm for purchasing derivatives is also increasing. The popularity and fan stickiness of the core IP itself are the inevitable factors to compete in this market.

【Mihoyo / Honkai: Star Rail】Jimi's Meeting Room Series Plush Doll

Another reason behind the booming sales of game peripherals is the commodified emotional appeal.

As an extension of the game, the sales of game peripherals largely depend on the popularity of the game itself and the completeness of character shaping. Excellent plot shaping is the initial driving force for players to buy peripheral products. Most users buy related derivatives of the characters they like. Based on this emotional connection, if the peripherals meet high-quality and personalized factors in terms of product novelty, form, and quality, it will stimulate players' strong desire to "generate electricity for love" and realize the "monetization" of players' love for the characters.

In addition, the survey on the consumption preferences of game peripheral products shows that all game players are most concerned about "having commemorative/collectible significance" and "being the same style as the game they like", and heavy players have a greater enthusiasm for "limited edition" peripherals. In summary, the uniqueness and commemorativeness of peripherals are important driving forces for consumption.

At this stage, most game products are facing IP brand building. Especially for top online games that hope for long-term operation, how to establish a deep emotional connection with users through high-quality game content and extend the life cycle of the game IP is a problem that cannot be ignored.

"Light and Night" × Pop Mart Flip Romance · Ring Box Series Scene Figurine

At present, major manufacturers have actively promoted the diversified development and construction of IP through methods such as concerts, co-branding, and IP cross-border cooperation. The excellent potential shown by the game peripheral economy at present undoubtedly provides a new idea for IP to continue its vitality and achieve economic transformation.

To explore the peripheral market, the production team needs more ingenuity

Obviously, relying solely on "sentiment" cannot stand out in the current complex game peripheral market. Combining the data presentation of this year's Double Eleven list, it is not difficult to see that users are more willing to "pay" for high-quality peripheral products.

Take "Code: Wildfire", which performed well in this year's data, as an example. The game production team has successively launched products such as the Q-version detachable "Heart Paper君 Rocker", and the "Liu Bian · Nine-Tailed" L2D interactive peripheral. On the basis of ensuring the aesthetics and quality, it actively innovates and increases interactivity and fun, taking good care of the diversified needs of players. During the 2024 "Double Eleven" period, 13 products in the "Code: Wildfire" flagship store achieved a monthly transaction volume of more than 100,000, showing the strong driving effect of high-quality peripherals on purchasing power.

"Code: Wildfire" "Heart Paper君 Rocker" peripheral

In the current situation where various peripherals are emerging, in order for major game manufacturers to further expand the peripheral product line, in addition to devoting more energy to the construction of the core IP, what needs to be paid more attention to is the diversification and differentiation of peripheral products. In addition to traditional products such as figurines, clothing, and stationery, emerging fields such as smart home and virtual reality equipment are feasible measures to further meet the emotional interaction needs of users, and are also the exploration direction of peripheral design.

In addition, in response to the differentiated psychology of users, the design of future peripheral products should pay more attention to customized services. By providing user customization options such as color, material, and pattern, and combining personalized recommendations based on user data to meet the psychological needs of users, the attractiveness and market competitiveness of products can be improved.

Conclusion

As a vibrant and developmentally potential field at present, the game peripheral market can bring to various manufacturers not only direct economic benefits but also the improvement of brand loyalty and influence. What innovations and breakthroughs the future peripheral market will have and whether it can play a unique role in extending the life cycle of various IPs still need the answer and verification of time.

It can be foreseen that the game IP will be another important position in the Chinese game market after it enters the red ocean stage.

This article was first published on "36Kr Games".