The "Ne Zha 2" photo-taking spot outside a cinema. (Photo/Qiu Xiaoya)
Chongqing - Since its release on the first day of the Chinese Lunar New Year, "Ne Zha 2" has consistently shattered box office records. Its merchandise has also been incredibly popular, with demand far outstripping supply.
At a Pop Mart store in Chongqing, a Chinese toy brand known for its blind boxes, a staff member told Chongqing Daily on February 10, "Many people rush to buy blind boxes after watching the movie, but the blind boxes in this series sold out in three days. We are unsure when we will restock." Additionally, blind boxes featuring "Ne Zha 2" figurines at the Pop Mart vending machine outside the store were also marked as out of stock.
As Chongqing Daily reported, on that day, a trendy toy store, "X11," had only a few "Ne Zha 2" movie still cards left on the shelves. A staff member explained, "Before the Lunar New Year, the store had stocked 'Ne Zha 2' movie merchandise like badges, clips, and colored paper, but they have all sold out. Restocking time is yet to be determined."
In addition to the booming offline sales of movie IP merchandise, online sales are also in high demand.
Currently, the top three blind box toys on Tmall's sales leaderboard are all "Ne Zha 2"-themed figurines. On Pop Mart's Tmall flagship store, one "Ne Zha 2" figurine blind box has already sold over 100,000 units. The pre-order waitlist extends until June 30, resulting in a waiting period of over four months.
According to data from JD Supermarket, the sales of "Ne Zha 2" themed figurines, blind boxes, and other merchandise have increased by more than 50 times compared to last year. The sales of Ne Zha partnership toys have exceeded 5 million yuan ($685,365).
Amid the scarcity of the "Ne Zha 2" merchandise both online and offline, second-hand platforms have seen price inflation. For example, as reported by Haibao News on Tuesday, the "Ne Zha flying pig" popcorn bucket, originally priced at 99 yuan, has been listed by some sellers for over 300 yuan, more than three times the original price.
The crowdfunding campaign for "Ne Zha 2" figurines has also seen an astronomical rise in funds. The official crowdfunding project by FunCrazy and "Ne Zha 2" had a target of 100,000 yuan, but by 3:00 PM on Thursday, it had raised 27.388 million yuan, achieving 27,388 percent of its goal.
Toy producers race to meet merchandise boom
"We originally planned to resume work on the eighth day of the Lunar New Year, but the movie’s success exceeded expectations, so we started production early on the fifth day to speed things up," said a representative from Sunny & Sandy, a toy manufacturing company based in Hunan Province, according to Beijing Daily. As the authorized producer of 3D plastic food toys for the movie, over 60 percent of the company's production lines are dedicated to "Ne Zha 2" merchandise, with the capacity to produce 400,000 toys daily.
According to the company, "Ne Zha" has become the most popular and promising IP in the factory's over a decade-long history. It is estimated that the company's "Ne Zha" merchandise alone will generate 200 million yuan in revenue within six months.
The rise of domestic IPs
In recent years, the development of IP derivatives in China has rapidly risen, with more and more films planning IP development in advance. Merchandise has become one of the best vehicles for transforming IPs from traffic-driven to long-term engagement. The success of "Ne Zha 2" merchandise is an example of this trend, as Beijing Daily reported.
"The development of movie IP derivatives is a very important step. When done well, it can greatly boost the IP's popularity. Many classic Hollywood IPs launch both the movie and derivatives simultaneously," a representative from Pop Mart said to Beijing Daily. For "Ne Zha 2," partnership products development started a year and a half in advance, and the flat design for the blind box figurines alone took nearly four months. Only then were we able to launch the merchandise simultaneously with the movie, the representative added.
"We found that some consumers saw the blind boxes in stores first, then learned about the movie and decided to buy tickets, showing how movies and derivatives can empower each other and help build momentum for the IP."
“Today's consumers no longer just focus on the functionality of a product; they increasingly value the emotional value it brings,” said Ye Guofu, founder of Miniso, according to Beijing Daily. "Interest-based consumption," as a new trend, is rising, and the IP consumer goods market is a trillion-yuan industry with huge potential. IP strategies have great promise, Ye noted.