What is the Millet Economy? (AI Translation)
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文｜财新周刊 冯奕铭 孙嫣然
By Caixin Weekly's Feng Yiming and Sun Yanran
2月以来，动画电影《哪吒之魔童闹海》（下称《哪吒2》）的票房几乎以每天2亿—3亿元的速度不断攀高，2月18日突破123亿元，超越迪士尼2024年上映的《头脑特工队2》，登顶全球动画电影票房榜。
Since February, the animated film "Ne Zha: The Devil Child Ventures into the Sea" (hereinafter referred to as "Ne Zha 2") has seen its box office climb at a rate of around 200 million to 300 million yuan per day. On February 18, it surpassed 12.3 billion yuan, overtaking Disney's "Inside Out 2" set for release in 2024, to top the global animation box office chart.
哪吒IP（知识产权）随之爆火，顶着黑眼圈、嘴里缺一颗牙的“反常规”哪吒形象，被做成手办、盲盒、徽章、手机支架，被印在牛奶、牙膏、威化饼干等包装上，一些产品引发粉丝抢购。
The Nezha IP (intellectual property) subsequently skyrocketed in popularity. The "unconventional" image of Nezha, sporting dark circles under his eyes and missing a tooth, was turned into figurines, blind boxes, badges, and phone holders. It was printed on the packaging of milk, toothpaste, and wafer cookies, with some products sparking a buying frenzy among fans.
《哪吒2》已与泡泡玛特（09992.HK）、中信出版集团、卡游、万代（BANDAI）、荣耀等十多家公司合作推出周边及联名产品。开源证券预计，哪吒系列IP衍生品收入或达100亿—150亿元，IP总商业价值或达300亿—350亿元。
"Nezha 2" has collaborated with over ten companies, including Pop Mart (09992.HK), CITIC Publishing Group, KAYOU, BANDAI, and Honor, to launch merchandise and co-branded products. According to Kaiyuan Securities, revenue from derivative products of the Nezha series IP could reach 10 billion to 15 billion yuan, while the total commercial value of the IP may amount to 30 billion to 35 billion yuan.
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- "Ne Zha 2" has achieved significant box office success, generating over 12.3 billion yuan, surpassing Disney's "Inside Out 2".
- The "Guzi Economy" is booming, with related merchandise sales and collaborations, like those with Pop Mart, reaching billions in commercial value.
- The introduction of Nezha-related products has fueled retail and publishing industries, with an impressive demand for culturally resonant merchandise driving growth in the IP product market.
"Ne Zha: The Devil Child Ventures into the Sea" (hereafter "Ne Zha 2"), an animated film, has witnessed a rapid increase in box office earnings, reaching 12.3 billion yuan by February 18, thus surpassing Disney's "Inside Out 2" to top the global animation box office chart. [para. 1]
The Ne Zha intellectual property (IP) has surged in popularity, inspiring merchandise such as figurines, stickers, and more, and partnering with companies like Pop Mart and CITIC Publishing Group. This has resulted in estimated derivative product revenues of up to 15 billion yuan, with overall commercial value potentially reaching 35 billion yuan. [para. 2][para. 3]
The conversion of IP value into consumer goods has resulted in booming sales. For instance, Pop Mart's Ne Zha-related products sold out quickly, and related merchandise sales on Taobao and Tmall have exceeded 80 million yuan. [para. 3]
This trend is part of the "Guzi Economy," a consumer culture revolving around IP-related merchandise and collectibles. In 2024, the secondary market for such items grew by 104%, underscoring their growing popularity among young consumers. The market is driven by emotional connections to characters and narratives, leading to a devoted consumer base. [para. 3][para. 4]
Torres, a business owner, shifted to the millet retail sector after witnessing the success of Ne Zha and opened a store in Shenzhen. His success speaks to the broader expansion of the Guzi Economy, with cities dedicating areas for Guzi-themed retailing. 2024 is anticipated to be pivotal for this market, with predictions for continued growth. [para. 5][para. 6]
However, the emergence of competition and homogeneity in product offerings is leading to low-price competition. Some commercial properties see hosting Guzi stores as an opportunity to attract younger crowds despite challenges. Miniso, wanting to capitalize on this, plans to release monthly Guzi products, indicating the Guzi Economy's integration into mainstream retail. [para. 6]
The evolving "valley economy" market size in China increased significantly in 2024, and it is forecasted to continue its growth trajectory. Still, issues like low barriers to entry and product homogeneity in the millet market contribute to a highly competitive environment. [para. 5][para. 6]
Nezha-themed merchandise sees enduring demand due to the film's multi-generational appeal. Items like books related to Nezha have substantially boosted the publishing sector. Fang Xi from CITIC Publishing discusses how the unexpected popularity of "Ne Zha 2" led to supply chain challenges, but nonetheless, related merchandise sales skyrocketed. [para. 6][para. 9]
The film's wide appeal invites older consumers unfamiliar with this market to participate, bolstered by social media engagement, hinting at how digital platforms propel consumer interaction. The significance of securing solid licensing agreements for IP-related products is demonstrated. The strategic licensing deals enable a successful rollout of products like those from the Nezha film series. [para. 9]
Establishing strong IP connections ensures product uniqueness in a saturated market. Large retailers and smaller businesses have an opportunity to use experiential consumption strategies to capture consumer interest through branded environments, as evidenced by Miniso's plans to expand its Guzi product line. This strategy involves transforming retail spaces into marketing mediums to enhance consumer engagement and reduce marketing costs. [para. 15]
While first- and second-tier cities are leading the charge in adopting anime-themed commercial spaces, lower-tier cities also gradually embrace this trend. These transformations are attracting younger crowds, crucial for future growth. [para. 19]
The challenge lies in addressing product homogeneity and competitive pressures. Miniso's strategic approach to leveraging experiential consumption aims to differentiate its offerings and expand its reach through partnerships with recognized IPs, enhancing its retail footprint across different market sectors. [para. 20]
The 2025 Nezha phenomenon illustrates the viability of integrating Chinese cultural elements into the burgeoning Guzi Economy, presenting a unique opportunity beyond Western influences. This speaks to cultivativing distinctive and culturally resonant products, potentially enhancing global competitiveness. [para. 21]
- Pop Mart
泡泡玛特 - Pop Mart collaborated with the animated film "Nezha 2" to release a series of merchandise, including blind boxes, which quickly sold out. By February 10, Pop Mart's Nezha-themed blind box sales on Tmall had exceeded 35 million yuan. The company adjusted production plans to meet ongoing demand and announced that its collaboration with "Nezha 2" would continue in the long term.
- BANDAI
万代 - BANDAI is one of the companies that collaborated with the animated film "Nezha: The Devil Boy Comes to the Sea" (referred to as "Nezha 2") to release merchandise and co-branded products. The partnerships for these products contributed to the significant commercial success and value derived from the Nezha IP.
- Honor
荣耀 - The article mentions that the animated film "Nezha 2" collaborated with over ten companies to release related products, and one of these companies is Honor. They worked together to produce and offer co-branded merchandise as part of the film's expansive and successful merchandising efforts.
- MINISO
名创优品 - MINISO plans to launch self-developed "guzi" (merchandise related to popular IPs) products every month in 2025, in response to the booming "guzi economy." After a successful collaboration with the Japanese manga IP CHIIKAWA, MINISO is focusing on developing more differentiated and creative IP products, including both long-time partners like Disney and new local and anime IPs.
- Enlight Media
光线传媒 - Enlight Media is the copyright owner of the Nezha film series. The company has been cautious with IP authorization, focusing mainly on quality and strategic collaborations to protect brand integrity. They granted rights selectively for the Nezha 2 film, showing improved market confidence compared to previous releases. Enlight Media's chairman, Wang Changtian, foresaw the potential for success in this domain years ago, leading to strategic long-term investments.
- M&G Stationery
晨光文具 - M&G Stationery (603899.SH) is engaging with the "Guzi" economy by offering products with emotional value for young consumers. They have collaborated with various IPs, from classic ones like Miffy to popular Japanese manga such as "One Piece" and domestic IPs like "Genshin Impact." Their Nine Wood Miscellaneous Society brand features a section dedicated to "Guzi" products, contributing to double-digit revenue growth in the first three quarters of 2024.
- Road Pictures
路画影视 - Road Pictures, a film production and distribution company, identified the potential demand for anime-related merchandise during domestic releases of films like "One Piece Film: Red" and "The First Slam Dunk." In response, they established the IP integration retail brand GuGuGuGu, which now operates over 40 stores nationwide. CEO Cai Gongming emphasized the importance of developing merchandise to extend IP value beyond the film's release, countering the natural decline in an IP's popularity post-cinema run.
- January 30, 2025：
- Pop Mart released its 'Innate Bond Series' blind boxes featuring Ne Zha 2 figurines.
- February 2, 2025：
- CITIC Press's publication 'Nezha: Tales of the Three Realms' began sales during its livestream.
- February 3, 2025：
- Searches related to 'Nezha' on Taobao's platform soared dramatically, with an average daily increase.
- February 10, 2025：
- Taobao and Tmall-authorized Ne Zha merchandise sales reached over 80 million yuan.
- February 10, 2025：
- On Tmall, 'Nezha: Tales of the Three Realms' sold 50,000 copies.
- February 11, 2025：
- Books like 'The Legend of Ao Bing' on JD.com saw transaction volumes increase 40 times from January 29.
- February 14, 2025：
- TOPTOY launched Nezha-related products including figurines and blankets.
- February 18, 2025：
- 'Ne Zha 2' surpassed 12.3 billion yuan at the box office, overtaking 'Inside Out 2'.
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