As of February 26, the animated film Nezha 2 has shattered box office expectations, surpassing a staggering 13.9 billion yuan in ticket sales. But what’s even more exciting is what’s happening beyond the screen. Industry insiders predict that the revenue from cultural derivatives and merchandise tied to Nezha 2 may rival, or even surpass, the film’s box office earnings.
In the wake of this explosive popularity, cities across China have launched a fierce race to claim a slice of the so-called “Nezha economy”—an economic wave estimated to reach the hundred-billion yuan mark. Among the frontrunners is Dongguan, a manufacturing powerhouse in Guangdong Province, where local toy and “chaowan” (trendy toys) companies have fired up production lines at full capacity to meet surging demand for Nezha-themed merchandise.
From “Bing Dwen Dwen” to “Nezha”: Dongguan’s Manufacturing Magic Strikes Again
This isn’t the first time Dongguan has stepped into the spotlight. Back in early 2022, the city’s toy manufacturers became household names thanks to the massive demand for “Bing Dwen Dwen,” the Beijing Winter Olympics mascot. The sudden spike in demand made supply scarce nationwide—and Dongguan’s factories rose to the challenge.
Fast-forward to 2024, and Dongguan’s manufacturers are doing it again, proving that their speed, agility, and scale are unmatched in the industry.
Billion-Yuan Orders Flood into Dongguan
One of the companies leading this charge is Wokongchang Culture (Dongguan) Co., Ltd., a creative brand incubator and IP merchandise producer. In late August 2024, the company obtained official licensing from Enlight Media, the producer of Nezha 2, to create a “mini sitting Nezha” plastic figurine series. Within just three days, both parties finalized a design and production plan for the first batch—10,000 sets totaling 300,000 items.
“I saw Nezha 2 twice in theaters,” said company president Sun Wenke. “I had a hunch that it could become the next ‘Bing Dwen Dwen’ phenomenon, so we started preparing early.” His instincts proved right. On the third day of the Lunar New Year, Wokongchang received a 1 billion yuan order, multiplying the initial batch by 500 and surpassing the company’s entire 2023 annual revenue.
Another Dongguan firm, Henglitai Arts & Crafts Co., Ltd., is also riding the wave. It is the exclusive producer of FunCrazy’s Nezha 2 badge and accessory series. In January, it delivered over 300,000 acrylic cards, fridge magnets, and other collectibles—many of which sold out immediately. The second batch, already in production, is ten times larger.
Dongguan’s Cluster Advantage: The Power of Synergy
How did Dongguan meet such massive demand in such a short time? The answer lies in one word: synergy.
Dongguan’s toy industry ecosystem boasts over 4,000 manufacturers and 1,500+ supporting suppliers, making it China’s largest toy export base. It’s estimated that 85% of China’s trendy toys and 25% of the world’s licensed merchandise are “Made in Dongguan.” This powerful industrial chain allows companies to rapidly coordinate design, prototyping, tooling, production, and packaging—all within a 15-minute drive.
After receiving the Nezha order, Sun Wenke quickly mobilized over 2,000 workers from upstream and downstream partners. He also deployed new equipment and instantly engaged suppliers—some with just a phone call.
One key partner, Vistoys Intelligent Manufacturing, handled mold development and most of the production. General Manager Li Wenbo explained, “Within 24 hours, we agreed on the plan and kicked off production.” He organized a late-night strategy meeting with his core team—while eating instant noodles—and got employees back on-site by the fifth day of the Lunar New Year. By the official return to work on the eighth day, attendance hit an all-time high of 80%.
Vistoys implemented a modular, parallel development strategy by integrating resources from 12 top mold companies. This approach slashed the usual 35–50 day mold development cycle down to just 10 days, and reduced the overall production cycle from 60 days to 10 days—a true “Dongguan miracle.”
AI, Automation, and the Rise of Smart Manufacturing
Dongguan’s success today isn’t just about fast hands—it’s also about smart minds. Local manufacturers are embracing AI and digital transformation to sharpen their competitive edge.
Take Wokongchang, for example. It partnered with the Dongguan AI Research Institute to digitize the expertise of senior craftsmen. AI-generated operating procedures now cut training times by 70%, enabling even new workers to produce ultra-fine figurines—just 4cm tall—with near-perfect accuracy.
In Henglitai, designers applied a silver glittering process to acrylic cards, giving Nezha’s character an iridescent flame effect. These innovations are transforming traditional toy production into next-gen cultural product design.
Stonepi Town, where both companies are based, is now building a Trendy Toy AI Prototyping Center, aiming to accelerate design, sampling, and mass production. Early data shows that AI integration reduces average production cycles by 20 days, boosts productivity by 20%, and improves product quality across the board.
Manufacturing Strength Powers Economic Growth
What does this all mean for Dongguan’s economy?
Sun Wenke predicts his company’s 2024 revenue will triple to 250 million yuan thanks to the Nezha orders alone. This explosive growth underscores how Dongguan’s strong industrial foundation and tech innovation can seize national economic opportunities—and even create new ones.
The local government is playing a key supporting role as well. For example, when Wokongchang needed to scale up, Dongguan’s Trendy Toy Center used a big data platform to help them find and coordinate with 20 top-tier suppliers. This kind of government-guided industrial matchmaking is enabling faster, smarter production.
Trendy Toys, Real Potential
Trendy toys are more than collectibles—they’re cultural expressions, emotional connections, and now, economic engines. According to Statista, China’s trendy toy market is expected to grow from 76.4 billion yuan in 2024 to 110.1 billion yuan by 2026, with an annual compound growth rate of over 20%.
Dongguan is at the center of this boom. Long known for OEM manufacturing, local firms are now moving toward IP creation, original design, and global branding.
The city has rolled out a series of policies, including the “11 Policies for Trendy Toys” and the Dongguan Trendy Toy Leading Enterprise Program, aimed at supporting R&D, IP protection, global exhibitions, and cross-border expansion.
From Trend to Transformation
From Bing Dwen Dwen to Nezha, Dongguan continues to prove that traditional manufacturing can transform into cutting-edge cultural industry leadership.
“‘Trendy toys’ are just the beginning,” said a local industry analyst. “The true story here is about industrial transformation and integration. Dongguan has the genes of a manufacturing giant—and it’s now combining that DNA with new technologies, new markets, and new creative forces.”
As AI, automation, and IP creation converge, Dongguan may not just be the home of the next Nezha—it might be the birthplace of the next global cultural brand.
