How a few-cent paper card became the 'king of cash' in China's consumer market
Chinese collectible card game (TCG) company Kayou (卡游) reported 2024 revenue of RMB 10.06 billion and net profit of RMB 4.47 billion, with gross margins exceeding 70%, according to a 36Kr analysis. The piece examines how blind-box mechanics, IP licensing, and speculative secondary markets have transformed low-cost printed cards into a RMB 26.3 billion industry. It also flags risks including over-reliance on external IPs like Ultraman and a user base concentrated in teenagers.
The view from inside
The 36Kr piece frames Kayou's success as a precision play on deep human desires—scarcity, belonging, and speculative gain—and probes whether it can evolve from arbitrage into a lasting industry. It employs the domestic jargon of '谷子经济' (guzi economy, a fan-derivative goods economy), '社交货币' (social currency), and '消费金融化的内容产业' (consumer-financialized content industry) to elevate the discussion. The intended audience is investors and entrepreneurs tracking new consumption trends. The analysis self-consciously positions China's card sector against global benchmarks like Pokémon, asking if a local champion can build intergenerational 'emotional compound interest' rather than just a short-term windfall.