Header image source: Pop Mart.
On February 6, at midday, Ne Zha 2 surpassed RMB 5.77 billion (USD 807.8 million) at the box office, overtaking The Battle at Lake Changjin (2021) to become the highest-grossing film in Chinese cinema history—a feat achieved in less than nine days.
With this milestone, Enlight Media, the film’s primary investor and distributor, saw its stock surge by 20% at the end of the trading session, reaching its highest point in nearly four years. Meanwhile, the film’s soaring popularity has turned Pop Mart’s licensed merchandise into highly sought-after collector’s items, with supply struggling to keep up with demand.
Both online and offline channels quickly sold out of the limited-edition blind boxes, and preorders vanished instantly. Those who managed to secure an order will have to wait until April or May for delivery. On social media, frustrated users lamented, “It’s impossible to get one,” while others accused Pop Mart of using artificial scarcity to drive up demand.
“We have urgently adjusted our production schedule and are actively restocking,” said a Pop Mart representative on February 7 in response to the overwhelming frenzy.
Interestingly, according to the same source, the crossover series only started selling out across Pop Mart’s distribution channels as Ne Zha 2 gained momentum.
This aligns with earlier reports: employees at various Pop Mart stores noted that when the merchandise first hit shelves, demand was relatively moderate. It wasn’t until the film’s box office performance exceeded expectations—breaking record after record—that blind box sales surged in tandem.
A bet that paid off beyond expectations
Much like how the rise of DeepSeek sparked renewed interest in old interviews with its founder Liang Wenfeng, Ne Zha 2’s box office dominance—breaking over 70 records—has prompted audiences to revisit past interviews with director Yang Yu (also known as Jiaozi) in search of insights into the film’s success.
The key? Time.
The movie took five years to make, with some individual shots requiring over three years of work. As Jiaozi put it, “Good things take time.”
The same principle applies to Pop Mart’s collaboration with Ne Zha 2.
According to a company insider, the development of this licensed collection took a year and a half, with the team prioritizing quality while ensuring the launch coincided with the film’s release. Beyond faithfully recreating iconic scenes from the movie, Pop Mart worked closely with the copyright holders to introduce creative reinterpretations.
The blind box series includes figurines of Ne Zha and Ao Bing in various forms: “lotus root starch,” “battle-ready,” “hand-in-hand,” and “naughty” Ne Zha, alongside various versions of Ao Bing. There’s also a hidden variant featuring Ne Zha in Ao Bing’s signature blue scales.
Unlike traditional movie tie-ins, which often lag behind a film’s peak popularity, Pop Mart took a more aggressive approach by launching the series alongside the movie’s release. The blind boxes debuted online at 10 p.m. on January 30, the day after Ne Zha 2 hit theaters, followed by an in-store rollout on January 31.
This zero-delay strategy allowed audiences to act on their emotional connection to the film immediately after watching. As a result, when the on-screen chemistry between Ne Zha and Ao Bing captivated fans, their “hand-in-hand” blind box figurine became the most coveted item.
The strategy also reflects lessons learned from the prequel. Back then, by the time official merchandise finally hit the market, the film’s hype had already faded, leading to underwhelming sales.
Even before Ne Zha 2, Pop Mart was already in the spotlight thanks to its strong financial performance, making it one of China’s standout companies in 2024.
After debuting on the Hong Kong Stock Exchange in 2020, riding the wave of its Molly blind boxes, Pop Mart’s market value soared past HKD 100 billion (USD 12.8 billion). However, by 2022, growth had stalled, wiping out over HKD 100 billion from its peak valuation. Then came 2023, when its stock rebounded by over 400%, reclaiming its former glory.
Today, Pop Mart’s empire extends far beyond Molly. In the first half of 2024 alone, the company generated over RMB 100 million (USD 14 million) from each of its top-performing IPs, including Molly, The Monsters, Skullpanda, Dimoo, Crybaby, Hirono, and Zsiga, with revenues ranging from RMB 1.23 billion (USD 172.2 million) to RMB 7.82 billion (USD 1.1 billion).
The company’s product range has also expanded beyond blind boxes to include soft vinyl plush toys, building blocks, and more. The Ne Zha 2 collaboration even introduced two plush figures: a Ne Zha in panda form and a “white dragon” Ao Bing.
Pop Mart’s 2023 success story was fueled by Labubu, whose plush toy sales drove The Monsters’ revenue up nearly 300% year-on-year, making it the fastest-growing artist IP under the company’s umbrella.
Its global expansion is also gaining traction. In Q3 2024, revenue from Hong Kong, Macau, and overseas markets surged by 440%, with the international share of total revenue climbing from 30% in the first half of the year to over 45%.
As CEO Wang Ning put it during last August’s earnings call, “We’ve essentially built a second Pop Mart overseas.”
With Ne Zha 2 now the highest-grossing film in Chinese history and a record holder in global single-market earnings, its impact extends beyond Pop Mart’s blind box sales, boosting the company’s international brand recognition.
Pop Mart has already made inroads into Southeast Asia and North America through aggressive store expansions and IP-driven growth. Now, Ne Zha 2 could serve as another catalyst for global expansion.
The film is set to premiere in Australia, New Zealand, Fiji, and Papua New Guinea on February 13, followed by the US and Canada on February 14. According to Enlight Pictures, additional releases are planned for Singapore, Malaysia, Japan, South Korea, and more. Trending hashtags on Weibo suggest that some overseas screenings are already sold out.
It remains to be seen whether Pop Mart will launch Ne Zha 2 blind boxes in its international stores. But as Morgan Stanley noted, the company’s flywheel effect is already in motion. With its ongoing global expansion, Pop Mart is well on its way to becoming a powerhouse, partnering with major IP owners worldwide to extend the popularity of their franchises through collectibles.
A win for the adults
History is written by the victors.
Jiaozi and Pop Mart founder Wang share a similar journey—both defying industry skepticism to carve out new spaces in animation and collectible toys. As Ne Zha 2 continues its box office run, audiences have become well-acquainted with Jiaozi’s story.
A pharmacy student at Sichuan University, he pivoted to animation out of passion, teaching himself 3D modeling while still in college. After graduating, he spent nearly four years crafting his animated short See Through, which went on to win multiple international awards.
Yet, when he sought commercial opportunities, the industry turned a cold shoulder. China’s animation market was largely geared toward children, and investors doubted whether animated films for adults could be profitable.
Wang faced similar resistance. His entrepreneurial journey began in college, where he made music video DVDs capturing campus life for classmates. Later, he ventured into retail with a grid shop business—a model where small display cubes or shelves are rented to individual sellers, allowing them to showcase niche, trendy, or handmade products without needing a full storefront.
This format laid the foundation for what would become Pop Mart. When the first Pop Mart store opened in Beijing’s Zhongguancun in 2010, it stocked everything from stationery and electronics to accessories, home decor, and clothing. “We sold a bit of everything,” Wang once said. His vision was to create a design-forward retail space catering to young consumers—a trend-focused concept store, hence the name Pop Mart.
By 2015, he noticed one category outpacing all others: trendy toys. Sensing an opportunity, he made a bold decision in 2016 to pivot entirely to collectible toys.
Securing funding, however, proved to be a battle. At a talk hosted by Matrix Partners China, Wang said, “In 2016, we struggled to raise money. No one was interested.”
The skepticism echoed the doubts Jiaozi faced when pitching animated films for adults. When Wang told investors, “I want to sell toys to adults,” the response was dismissive: “You’re joking. Adults don’t buy toys. That’s like trying to sell shampoo to a bald man.”
According to 36Kr, Wang pitched his vision to nearly every investor and financial advisor he could find. At its lowest point, Pop Mart had less than RMB 1 million (USD 140,000) in its accounts—barely enough to cover payroll.
“Back then, Wang would walk in with a long presentation deck, pitching his vision of Pop Mart as the ‘Bandai or Mattel of China.’ But every time, he left empty-handed.”
In hindsight, an ironic twist of fate stands out: Wang didn’t just seek investment from financial firms—he also approached industry players. One of them was Enlight Media.
Enlight ultimately passed on investing in Pop Mart, but it did place a bet on Jiaozi. In 2015, the company established Coloroom Pictures, an animation-focused division, and announced investments in 13 animation studios—one of which was Coco Cartoon, founded by Jiaozi.
At the time, Enlight’s chairman, Wang Changtian, laid out an ambitious roadmap for China’s animation industry. Still, few could have predicted that Ne Zha 2 would rewrite the history of Chinese cinema.
Much like how Pop Mart’s crossover collection has outgrown the blind box economy label, Ne Zha 2’s success challenges the conventional narrative of China’s animation rise. More than just a win for Enlight or Pop Mart, it represents a triumph for those redefining what it means to grow up.
As Wang once put it: “Who says that once you turn 18, you can’t buy toys anymore—that you have to live life the ‘adult’ way?”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Li Xiaoxia for 36Kr.