China's film merchandising market thrives

Toys featuring Nezha, the main character from "Ne Zha 2," are pictured at the workshop of a toy manufacturer in Xiangtan, central China's Hunan Province, Feb. 8, 2025. (Xinhua/Chen Sihan)

In recent years, China's film merchandising market has gathered strong momentum, emerging as a new source of revenue for the country's movie industry.

Merchandise sales for the domestic sci-fi blockbuster, "The Wandering Earth II," released during the 2023 Spring Festival holiday, exceeded 100 million yuan (about $14.03 million). That figure was surpassed this year by "Ne Zha 2," another animated hit that captivated audiences nationwide.

Even more striking, merchandising revenues for films released this summer rose sharply year on year, with homegrown titles such as the animated film "Nobody" seeing related products fly off the shelves.

Film merchandising, which transforms iconic characters, storylines and scenes into purchasable goods or services, serves as both an extension of a film's intellectual property and an integral part of the broader movie ecosystem.

The surge in merchandise sales has become one of the most eye-catching features of China's recent movie market.

According to reports, the producers of "Nobody" rolled out 207 official merchandise items based on the film's characters and plot, along with more than 400 authorized derivative products, from plush toys and stationery sets to puzzles and trading cards. During its summer release, merchandising sales quickly exceeded 7 million yuan, with the little pig monster plush toy selling out rapidly.

Another animated film, "The Legend of Hei 2," achieved similarly impressive results, with combined online and offline sales of merchandising nearing 140,000 units.

Data shows that merchandising revenue during this year's summer movie season jumped 120 percent year on year. Once seen as a supporting element, film merchandising has now evolved into a driving force for the growth of the film industry, showing huge market potential.

The explosive growth in film merchandise sales is closely tied to the strong box-office performance of domestic animated productions.

Compared with live-action films, animated features often revolve around lively, recognizable characters that lend themselves naturally to merchandise development. Their younger audiences are more inclined to make related purchases.

Characters like the adorable little pig monster from "Nobody" and the charming ensemble of "The Legend of Hei 2" illustrate this perfectly. Both films achieved outstanding box office results — approximately 1.7 billion yuan and over 500 million yuan, respectively — providing fertile ground for merchandising success.

While younger audiences are drawn to the cuteness and creativity of animated merchandise, adult moviegoers often seek emotional resonance and cultural depth.

For many, buying merchandise becomes a way to extend the emotional experience of the film. For instance, the portrayal of the struggles and perseverance of ordinary office workers in "Nobody" resonated deeply with urban audiences. Many bought the little pig monster plush toy not just as a keepsake but as a symbol of perseverance and aspiration, a reflection of their own lives.

This emotional connection transforms film merchandise from simple consumer goods into cultural symbols and shared social expressions. Through purchasing and using such products, audiences form a sense of belonging and identity tied to the films they love.

Over the years, China's film industry has made steady progress in production, distribution and marketing, laying a solid foundation for merchandise development.

Improved production quality has led to works with strong artistic merit, entertainment value and market influence, creating memorable characters that provide rich material for derivative products. Meanwhile, advances in film production technologies have broadened the creative space for merchandise development.

In marketing and distribution, the industry has also built a more diversified and integrated promotional system, with merchandising becoming a vital part of film marketing strategies.

Industry insiders note that Chinese films are gradually shifting from reliance on box office revenue to more diversified income sources. In recent years, companies such as Shanghai Film Group and Enlight Media have expanded aggressively into the merchandise market, setting up IP valuation systems, identifying potential merchandising early, and developing derivative products alongside film production.