From screen to store, 'Ne Zha 2' becomes financial powerhouse

The animated film "Ne Zha 2" has made an unprecedented mark in global cinema. As of 11:30 a.m. Beijing Time on February 15, "Ne Zha 2" has grossed 10.85 billion yuan (around $1.51 billion), including pre-sales, ranking among the top 15 highest-grossing films of all time.

As the conversation surrounding "Ne Zha 2" intensifies, so does the buzz about its financial success. Notably, the movie has forged partnerships with 23 brands, generating over 400 million yuan in sales within just two weeks of releasing co-branded merchandise, according to Sina Finance.

A surprising player that has captured attention is Pop Mart, a company making headlines for its collaboration with the Ne Zha franchise. Their limited-edition figurines have flown off shelves, with over 20,000 daily online searches and sales surpassing 10 million yuan in just eight days.

On February 6, CardFun, a company specializing in licensing famous formats and franchises for collectible cards and related products, announced that its Ne Zha collectable cards had surpassed 100 million yuan in sales, securing the top position in China's national sales ranking for collectible card categories. CardFun launched two types of cards – one coinciding with the release of "Ne Zha 2" and another offering a more luxurious version for collectors.

Meanwhile, LDCX, a company known for producing toys based on popular franchises like Ultraman and Kamen Rider, introduced a range of Ne Zha figurines. These products, sold on Chinese platforms like Taobao and Douyin, have accumulated nearly 2 million yuan in sales.

According to Feng Xueyan, a professor at Guangdong University of Finance and Economics, merchandise is now a vital revenue stream for the content industry, giving rise to the "second box office" phenomenon. This shift highlights a significant change in China's entertainment sector, moving from a reliance on box office earnings, to diversifying into long-tail monetization, paving the way for healthier and more sustainable business models.