In Depth: Fans Go Wild for Ne Zha Merchandise, but Challenges Lurk Behind the Hype

The overwhelming success of the Chinese animated film “Ne Zha 2” has spurred a nationwide obsession with a diverse range of film-themed merchandise, leading to significant economic gains for related businesses[para. 1]. With the film grossing about 13.8 billion yuan ($1.9 billion) in global box office sales within four weeks, it has overtaken Disney's “The Lion King” and Pixar’s “Inside Out” as the highest-grossing animated film of all time[para. 2]. The film's characters, particularly Ne Zha, a spirited demon child, have become immensely popular, leading to the widespread production and sale of related merchandise such as toys, blind boxes, badges, and more, boosting the revenue of multiple companies[para. 3][para. 4]. Companies like Pop Mart International Group Ltd., Citic Press Corp., and others are developing Ne Zha-themed merchandise, positioning their sales to reach between 10 and 15 billion yuan in the future, emphasizing the film’s cultural and commercial impact[para. 4].

Businesses have quickly responded to the frenzy by expanding the fan merchandise economy in China, underpinned by popular intellectual properties (IPs) from varied entertainment mediums such as comics and video games[para. 5]. This fan-driven sector grew remarkably in 2024, with a significant increase in anime-themed commercial areas and dedicated shopper zones, acting as a lucrative market trend[para. 6]. The fan merchandise economy's rapid growth, evidenced by its expansion to 168.9 billion yuan in 2024, is projected to soar to 308.9 billion yuan by 2029[para. 7].

The immediacy of demand for Ne Zha merchandise was evident with Pop Mart’s launch of themed figurine blind boxes selling out instantly, requiring shoppers to preorder online[para. 9]. Moreover, other brands like Miniso, through its trendy toy brand Top Toy, introduced related products such as plush dolls and keychains[para. 10]. The success of Ne Zha-themed books, with sales multiplying on platforms like JD.com and Tmall, also highlights the film's influence on the publishing industry[para. 11]. Sales on Alibaba's Taobao marketplace indicated a significant consumer interest, with over 2 million buyers and sales exceeding 300 million yuan[para. 12]. As the film's audience grew, it captured a broader demographic, including older audiences, further expanding the market for related merchandise[para. 13].

Brands like Miniso have tapped into the anime merchandise market by forging partnerships with popular IPs, such as the Japanese manga series Chiikawa, leading to successful new product lines and a strategic focus on anime merchandise in future business plans[para. 18][para. 19]. Meanwhile, traditional retailers and film companies also benefit from this trend, recognizing the commercial potential of fan merchandise by developing and maintaining robust IP-focused operations[para. 23]. The shift towards anime-themed retail spaces, such as the transformation seen in Shanghai with the Bailian ZX Creative Center, further illustrates how embracing this cultural wave can lead to increased foot traffic and sales growth[para. 25].

However, the sustainability of the fan merchandise market remains in question due to issues like product homogenization and low-profit margins that threaten some stores’ viability[para. 29]. Establishing strong relationships with IP licensors and maintaining a deep understanding of the anime community's needs will be crucial for businesses seeking to thrive in this sector[para. 30][para. 31]. Despite these challenges, industry insiders remain optimistic about the fan merchandise market's growth potential, considering these hurdles as temporary setbacks in an otherwise booming industry[para. 32].