Merchandise, small players swept up in whirlwind success of Ne Zha 2(4)

A Ne Zha series of blind box figurines for sale at a Pop Mart store in Beijing on Tuesday. ZOU HONG/CHINA DAILY

IP protection

In Yiwu's small-commodity market in Zhejiang province, an "unofficial merchandise" scene is unfolding. Merchant Chen Jianguo was proud to show "his achievements". He had replicated the Ao Bing mask in three hours, and the first 5,000 sold out within 48 hours.

"The official version sells for 199 yuan? My version is only 19.9 yuan with free shipping!" he said.

While Chen is proud of his product, the rampant growth in unauthorized products is causing headaches for copyright holders.

The challenges associated with merchandise piracy underscore the fragility of China's domestic animation industry. Despite advances in technical collaboration and product development, the Chinese animation sector still has ground to cover before achieving a "Disney-style ecosystem", said Chen Shaofeng from Peking University.

"For instance, Disney typically kick-starts IP development a year before a movie's release, supported by a robust legal team specializing in intellectual property," he said.

"They also strategically map out theme park expansions tied to their IPs. In the world of IP economics, box office earnings may only represent roughly 38 percent, with derivatives and theme parks occupying a major share of total profits, signaling a need for Chinese production teams to sharpen their focus on IP profitability," he said.

Meanwhile, locales associated with Ne Zha, like Yibin and Jiangyou, are steadily gaining prominence on the back of the movie's success. The hashtag #MultiplePlaces-CompetingforNezhaIP# has trended across various social platforms.

Data from the online travel service Fliggy showed a notable surge in searches for Ne Zha-related destinations in the past week, with Yibin witnessing a 225 percent spike and Jiangyou skyrocketing by 453 percent. Searches for attractions such as the Ne Zha Nao Hai Water Park and Ne Zha Town have also experienced a significant upswing.

Ne Zha 2 has showcased the formidable impact of a top-tier IP. Nonetheless, as the hero's "My fate is determined by me, not by heaven" ethos resonates with audiences, the Chinese entertainment industry is considering how to ensure it is not a one-off success.

"Chinese filmmakers should embrace an industrialized system and hold content in reverence," Chen Shaofeng said.