IP character licensing: how does character design succeed commercially? The new 2026 brand trends in one read

In today's market, character IP licensing has become a key tool for brand building and monetization. Whether it is a timeless classic IP or a character that has risen quickly in recent years, licensing, merchandising and content marketing can create remarkable commercial value! Brand building no longer relies only on logo recognition; brands now go further and create their own character IP that fits their brand image.

Distinctive visuals and storytelling deepen the emotional connection with consumers and increase market influence.
What key elements should you consider when designing a character? And how will the latest 2025 trends affect monetization strategies for characters? Let's take a look!

What is IP licensing? What exactly is an IP, and how does it affect a brand?

IP (intellectual property) character licensing means granting other companies or individuals the right to use a well-known character or brand for commercial cooperation. Licensing can be applied to product manufacturing, brand promotion, cross-industry collaborations and more, bringing multiple benefits to both sides.

Simply put, an IP character is like a "mascot" created by a company, brand or game. When consumers see these virtual characters, they immediately think of the brand. For example:

• Fuli Bear → PX Mart
• Tatung Boy → Tatung rice cooker
• OPEN-chan → 7-Eleven Taiwan
  These classic characters have given their brands a distinctive identity, making them more recognizable and influential in the market.

IP character licensing not only helps a brand expand its market reach but also brings steady income through licensing fees. As an IP character's influence grows, manufacturers become more eager to discuss partnerships that pair the character with products, fully commercializing these "mascots"! So running a successful IP takes more than character design; it also needs an effective business strategy and licensing plan to keep growing and create the greatest commercial value.

Next, we look at several of today's most popular and successful IP characters, and how they create huge commercial value for brands through licensing partnerships!

Uwaa! Who are they? Chiikawa, the hottest IP of 2025 and the face of comfort characters

Chiikawa is easily one of the hottest character IPs of recent years, setting off a strong craze in Japan and across Asia. Beyond its cute character design and heartwarming interactions, the key to this IP's success is the social reflection hidden within it, which strikes a chord with the public.

Chiikawa's story follows a few small animals. They look cute, but the challenges and efforts they face in daily life actually mirror the pressures of modern society, such as workplace competition, social expectations, loneliness and the hard work of getting by. That is why it touches so many people deeply and lets fans see themselves in the characters.

Image source: Chiikawa Market official store. For case study reference only; imitation is strictly prohibited. If this infringes any rights, please contact us immediately!

Images above from the official websites of FamilyMart, WooTEA and Kura Sushi

📌 Market influence: strong sales power online and offline, creating a market worth over 10 billion yen.
📌 Collaborations: IP licensing spans retail (FamilyMart), restaurant brands (Kura Sushi), bubble tea shops, the shoe brand CONVERSE, Major League Baseball (MLB)… and more.

Maltese the line puppy: you have been visited by the lucky puppy!

Korean illustrator moonlab_studio pairs simple line drawings with soothing, playful captions, winning over younger generations. The secret of this IP's success is how it cleverly uses everyday scenes from studying, work and dating to strike an emotional chord with the public.

The line puppy's style is minimal, yet its witty short lines and relatable situations make fans feel, "That's my daily life!" Whether facing exam stress, dating troubles or small everyday joys, fans can see themselves in the character, so they willingly repost and share it. This let the IP spread quickly and win the favor of brands.

Content above from the Instagram creator @moonlab_studio. For case study reference only; imitation is strictly prohibited. If this infringes any rights, please contact us immediately!

Both of these successful character IPs generated MGM (member-get-member) effects through the connection between the characters and real life. Successful IPs know how to spread through social media, making fans willing to share and interact on their own. So how to make a character resonate with consumers is also a key factor in whether an IP succeeds!

IP business models: how can a character IP make money, and how should you commercialize it?

1. IP licensing

The brand licenses its IP to other companies, which produce and sell related products, and the brand earns licensing fees.

Example: Hello Kitty, a veteran IP, is licensed to toy, food and apparel brands, generating billions of US dollars a year.

2. Merchandise

The brand develops and sells its own IP merchandise, such as figures, stationery, apparel and home goods.

Example: Kakao Friends sells IP products through physical stores and e-commerce, with revenue growing steadily. Developing in-house gives more control over the brand image and increases the value of the fan economy!

3. Content monetization

Monetizing through film and TV, comics, games and more, including broadcast royalties and ad revenue sharing.

Example: Pokémon drives the global market through its core game series, including Pokémon GO, and combines animation, films, the card game and all kinds of merchandise into a vast IP ecosystem. Pokémon GO's innovative AR gameplay in particular took the IP beyond the traditional game market, attracted a much wider range of players and further raised the brand's value.

4. Brand collaborations and cross-industry partnerships

Model: launching limited-edition products with other brands, or partnering with large malls, theme parks and themed exhibitions.
Example: EVA Air partnered with Sanrio to launch Hello Kitty themed livery jets, in-flight merchandise and meals, improving the passenger experience and brand recall and attracting fans from around the world.

5. O2O experiences and themed spaces

Model: opening IP-themed stores, pop-up shops, theme parks and immersive exhibitions to give fans interactive experiences.
Example: Sanrio Puroland and LINE FRIENDS Café & Store have successfully built economies around physical spaces.

How do you run a character IP successfully, and how should companies plan their IP marketing?

Running a successful IP takes more than creating a character. It needs an effective market strategy to expand the character's influence and generate revenue.

1. Build a brand story for the character

A character is more than an image; it needs a story that moves people to establish a brand IP! For example:

• Chiikawa: uses cute characters to convey the idea of "doing your best in life", creating an emotional bond with fans.
• Kumamon: built its brand on humor plus local character, boosting local tourism and the economy.

2. Raise the character's profile through social media marketing

Social media is one of the most important tools for character marketing. For example:

• moonlab_studio posts line puppy illustrations on Instagram, raising fan engagement and share rates.
• Chiikawa's short animations sparked a craze on Twitter and TikTok, driving fan creations and brand exposure.

3. Make flexible use of IP licensing and cross-industry collaboration

Companies can use licensing to bring characters into different fields. For example:

• Disney licenses its characters to apparel brands for limited-edition collections.
• Pokémon entered the game market, and Pokémon GO's innovative AR gameplay lets players of all ages immerse themselves in the fun of catching Pokémon with a classic IP!

In the future, as digital media and consumer markets keep evolving, the influence of character IPs will continue to grow. Companies can make flexible use of IP licensing or build a personal brand! Characters that meet market needs and connect deeply with consumers will stand out in a competitive market and create long-term value.

Now is the best time to create your brand's own IP! Let us work with you to tailor a unique original character for your brand, open new market opportunities, raise your brand's voice and increase its commercial value. Contact us today and let's turn your brand story into a character IP that stays in people's hearts!

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