With the immense success of "Ne Zha 2," fans of the popular Chinese film are racing against time to buy blind boxes featuring the film's main character, as inventory quickly runs out both online and in stores.
According to a staff member at Pop Mart, a well-known toy manufacturer in Beijing, "Ne Zha-themed products fly off the shelves as soon as they are available. We've noticed dozens of people signing up for pre-sales daily."
Similar to "Black Myth: Wukong," China's groundbreaking 3A video game that captured global attention in 2024, "Ne Zha 2" has emerged as another beloved creation rooted in traditional Chinese culture. Both cultural hits have effectively transformed fan excitement about their intellectual properties (IPs) into significant profits.
As of Saturday (Feb. 22), the global box office revenue for "Ne Zha 2," including presales, has surpassed 13 billion yuan (approximately US$1.8 billion), placing it eighth on the list of the highest-grossing films of all time, according to ticketing platforms.
Beyond its cinematic success, animation is also making significant strides in the consumer market. Merchandise sales on Taobao, a leading Chinese e-commerce platform, exceeded 50 million yuan earlier this month.
In response to the heightened demand for "Ne Zha 2" merchandise, an authorized manufacturer in Dongguan, Guangdong Province, quickly increased production following the film's release during the Chinese New Year, aiming to capitalize on the growing market for Chinese IPs.
"We have received nearly 1.4 million orders for peripheral products. While we operate overtime to produce these items, our factory is also developing new products inspired by the film," said Chen Qi, the company's general manager, who expressed hopes for future collaborations with more domestic brands to create IP derivatives.
This rising interest in domestic IPs is evident across factories in China, where businesses are shifting their focus from exports to harnessing opportunities in the expanding domestic market.
CITIC Securities predicts that this year, China's IP derivatives market will exceed 500 billion yuan.
According to Tianyancha, a corporate information provider, more than 49,000 companies in China are involved in the trendy toy economy, with around 13,000 registering in 2024.
The rapid growth of China's trendy toy market underscores the nation's strengths in IP, supply chain capabilities, and consumer potential, noted Li Yongjian, a researcher at the National Academy of Economic Strategy of the Chinese Academy of Social Sciences.
"Ne Zha 2" isn't the first IP to drive merchandise consumption in China. In 2023, another domestic success, "The Wandering Earth 2," raised over RMB 140 million through crowdfunding for its merchandise.
Additionally, in January, Chinese retailer MINISO opened a "Black Myth: Wukong" themed store in Beijing, drawing significant attention as fans eagerly lined up to buy limited-edition items.
As the IP economy continues to expand, retailers like MINISO are leveraging the cultural and emotional appeal of beloved franchises.
Ye Guofu, founder of MINISO, remarked that Chinese consumers, particularly younger generations, are increasingly valuing the emotional connections tied to products, which is likely to further boost the demand for IP-based merchandise.
These IPs not only highlight the richness of China's cultural heritage but also illustrate how modern technology and creativity can revitalize ancient stories, making them relevant and engaging for today’s audience. This blend of tradition and innovation has created a strong foundation for the thriving IP derivatives market.
"Traditional culture must be revitalized with a modern approach," stated "Ne Zha 2" director Yang Yu, known as Jiaozi, emphasizing that literary classics are the most valuable source of cultural IPs for animated films.
Zhao Xinli, dean of the Advertising School at the Communication University of China, pointed out that with the immense potential of the domestic consumer market, a well-established animation production system, and a rich cultural heritage, China's cultural industry is poised for an even brighter future.
(Source: Xinhua)
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