Caixin Weekly | 'Nezha 2' Brightens Spring Festival as Consumption Steadily Kicks Off the New Year (AI Translation)

财新周刊｜《哪吒2》点亮春节 消费平稳开年

[para. 1] The highlight of the 2025 Chinese New Year was "Nezha: The Devil Child Makes Havoc in the Sea" ("Nezha 2"), a domestically produced animated film, becoming China's all-time box office champion. It grossed over 10 billion yuan, exceeding 4.8 billion yuan during the Chinese New Year slot alone, and is poised to enter the global top ten box office. The film's success influenced cultural tourism, with related searches on Tongcheng Travel increasing fivefold, and a notable rise in hotel bookings in Yibin and Tianjin's Nezha-themed spots.

[para. 2] On social media, discussions about Nezha surged, with merchandise quickly selling out. JD.com saw a 20-fold rise in search indices and a 50-fold increase in sales. Pop Mart's Nezha2 blind boxes also sold out immediately. The cultural influence of "Nezha 2" is seen as pivotal during the 2025 Spring Festival, marking a change after the previous year's 23% decline in national box office revenue.

[para. 3] Wu Chaoming from Caitong Securities claims the Spring Festival consumer behavior is complementary, and local governments spurred activities using vouchers for culture, tourism, dining, and movies, enhancing consumption. Macroeconomic data cited that consumer industries' sales revenue increased by 10.8% during the festival, with goods and service consumption growing by 9.9% and 12.3%, respectively.

[para. 4] Films, including "Nezha 2," led to a total box office of 9.5 billion yuan, a historical record for the Spring Festival season. 501 million domestic trips were recorded, up 5.9% year-on-year. Ctrip reported significant interprovincial travel, with Beijing, Shanghai, and Chengdu as top destinations. Cross-border trips rose by 6.3%, aided by online popularity.

[para. 5] Consumer subsidies boosted home appliances and electronics sales. The Ministry of Commerce indicated a substantial rise in home appliance sales, with significant growth due to "trade-in" policies driving purchases. The effective sales witnessed in retail consumption highlight a transitioning focus from goods to services and experiences, evidenced by substantial increases in service consumption.

[para. 6] Domestically, post-pandemic tourism spending remained restrained despite an increase in travel. According to securities projections, tourism revenue in 2025 is expected to grow significantly compared to 2019 levels. However, costs, such as flight pricing, have declined due to shifts in travel patterns and price sensitivity.

[para. 7] Retailers like catering businesses faced challenges, with average transaction values falling despite increased customer traffic. Consumer preferences have shifted to budget-friendly options, reflecting weaker spending power. Local vouchers and stimulus measures are in place to support stronger market performance in the face of these trends.

[para. 8] China’s cultural and tourism consumption experienced record highs but also highlighted volatility across sectors, indicating room for policy improvement and consumption diversity. Emerging trends seen in regional tourist hotspots suggested shifting interests toward experiences over material purchases, with "intangible cultural heritage" themes playing a role in reshaping consumer attractions.

[para. 9] Cross-border tourism saw significant recovery, with policies boosting entry-exit numbers, especially among foreign nationals. This rise, coupled with China's favorable policies for tourism, contributed to a dynamic holiday environment, indicating a strong foundational recovery post-COVID-19.

[para. 10] Tourism retail in Hainan decreased sharply, despite voucher distributions. Analysts expect lingering challenges in discretionary spending, largely driven by real estate and stock market factors. As the economy stabilizes, experts recommend careful monitoring of consumption trends across different economic segments in China.