What: Chinese companies are shifting from IP violators to global innovators, with brands like Pop Mart redefining retail through original IP and aggressive protection strategies.

Why it is important: The shift highlights how Chinese companies are using original IP to drive global retail expansion and reshape competitive dynamics, aligning with recent market analyses.

China’s retail landscape is undergoing a profound transformation as domestic companies move from being widely accused of intellectual property violations to becoming global innovators and IP proprietors. This evolution is exemplified by brands such as Pop Mart, whose Labubu collectibles have propelled the company into the luxury segment and established it as a cultural force both in China and internationally. The government’s increasing emphasis on IP protection, particularly since the “Made in China 2025” initiative, has led to stronger enforcement and the creation of specialised IP courts, aligning China’s legal framework more closely with global standards. Pop Mart’s success has also brought challenges, notably the proliferation of counterfeit products like Lafufu dolls, prompting coordinated crackdowns and highlighting the complexities of IP enforcement in a rapidly globalising market. Meanwhile, other Chinese brands are following suit, investing in original design and leveraging cultural exports to enhance their global presence. This shift not only elevates the legitimacy and value of Chinese retail brands but also signals a new era in which innovation, brand protection, and consumer engagement are central to global retail competition. 

IADS Notes: China’s retail sector has been marked by accelerated innovation and restructuring, as seen in April 2025, with companies like Pop Mart setting new standards for brand-building and consumer engagement by expanding into luxury and experiential retail, as highlighted in November and October 2025. Regulatory crackdowns in both Europe and China, noted in October and February 2025, underscore the rising importance of IP protection and legitimacy. The broader trend of digital innovation and cultural integration, observed in January and March 2025, further demonstrates how China’s maturing IP ecosystem is driving global shifts in retail competition and consumer perception.

From theft to Labubu: the evolution of intellectual property protection in China