Caixin Weekly | The Business of 2D IP Derivatives: Nezha Frenzy Heats Up the Millet Economy (AI Translation)

财新周刊｜二次元IP衍生周边生意 哪吒旋风吹热谷子经济

*Ne Zha: The Devil Child Strikes the Sea* (referred to as "Ne Zha 2"), since its release, has experienced massive box office success, with earnings surpassing 12.3 billion yuan as of February 18, breaking records for animated films globally. This success has not only translated into ticket sales but also into a bustling market for Nezha-related merchandise, which includes figurines, blind boxes, and various other products. [para. 1]

The intense commercial interest involves partnerships with over ten companies like Pop Mart and CITIC Publishing Group, with IP derivative revenues estimated between 10 and 15 billion yuan. The broader economic impact, referred to as the "Goods Economy," has stimulated an array of merchandise sales beyond just anime and games, creating a lucrative industry predicated on fans' emotional connections to characters. [para. 3]

Secondhand markets for rare merchandise are also thriving, exemplified by platforms like Xianyu, which saw a 104% increase in secondary market activity within a year. The consumer loyalty tied to these products is bolstered by their content-driven nature, attracting fans who see these items as emotional extensions of their favorite works or characters. This economy has not only reshaped consumer behaviors but also sparked substantial real estate undertakings aimed at capitalizing on this trend, with malls and commercial spaces being redesigned to incorporate anime-themed environments. [para. 4][para. 5]

A significant narrative behind Ne Zha's success is the transformation of intellectual property (IP) into consumable merchandise. Initially, companies like Enlight Media were reticent to extensively license "Ne Zha 1." However, "Ne Zha 2" has seen more strategic licensing with companies demonstrating strong collaboration capabilities. This cautious expansion strategy is believed to mitigate the risks of IP dilution and piracy, while simultaneously harnessing the commercial potential of the IP. On the other hand, emerging IPs like "Demon Slayer" pursue broader, saturation licensing strategies. [para. 12][para. 15]

Globally, successful collaborations such as Miniso's partnership with the Japanese comic series CHIIKAWA's resulted in plush toy sales exceeding initial expectations and sparked fervent consumer interest. The marketability and rapid sales highlighted the effectiveness of combining recognizability with accessible pricing. [para. 19]

Retailers, including established companies like Miniso and Morning Light Stationery, are adapting by emphasizing the potential of IP-related products to offer emotional value to consumers, extending beyond simple transactions to experiential engagements. This aligns with strategies focused on ensuring new, engaging retail environments that cater to fans. [para. 21]

Meanwhile, consumer interest in Nezha remains high, with ongoing efforts from manufacturers to replenish stock and accommodate demand, a process that includes engaging more advanced production planning. Additionally, stores and publishers are continuously leveraging the film's success to sustain momentum through timely releases of related merchandise and literature. [para. 11][para. 16]

As the concept of anime-themed business spaces gains traction, retail environments are quickly transforming into culturally immersive experiences. The evolution of spaces like Bailian ZX Chongqu Plaza underscores a successful transformation from underperforming malls into thriving hubs of anime culture, significantly increasing foot traffic and consumer engagement. [para. 23][para. 24]

In summary, the "Guzhi Economy" is an evolving ecosystem driven by consumer enthusiasm for anime and game-related culture. This trend is not only reshaping consumer marketplaces but also indicates a powerful direction for retail and IP strategies structured around culturally resonant themes. The explosive growth of Nezha and similar IPs is emblematic of a broader cultural shift towards integrating beloved characters and stories into everyday consumer products, offering both emotional fulfillment and strategic business opportunities. [para. 1][para. 3][para. 5][para. 24]