BEIJING - Fans of record-breaking blockbuster Chinese movie Ne Zha 2 are making significant waves in the derivatives market, clearing out retailer inventories and even creating DIY character-shaped dolls and food items.

Since the film's debut on the first day of the Chinese New Year, which was Jan 29 this year, sales of its collectibles, ranging from mystery toy boxes and cards to fridge magnets and badges, have reportedly topped 50 million yuan ($6.97 million) on Taobao, a leading e-commerce platform in China.

This sequel to the 2019 hit Ne Zha, with inspirations derived from Chinese mythological tales, has already drawn over 200 million cinema-goers, the highest number in the country's film history.

The film became an instant holiday box office hit thanks to its contemporary re-imagination of Ne Zha, a well-known mythical figure with extraordinary powers, and via its intriguing plot twists. 

Customers inquiring about toys featuring characters from the film are often left disappointed at stores across China. A salesperson at a trendy toy store in downtown Nanjing in East China's Jiangsu province said even display samples were sold out. "We expect to restock items like laser cards later."

Notably, Hunan Sunny & Sandy Toys Manufacturer Co Ltd, the film's sole licensed manufacturer of 3D food-grade plastic toys in China, reported sales of over 450,000 mystery toy box sets through live-streaming in just 11 days -- ranking first in terms of the sales of board-game merchandise on the video platform. In addition, more than 10 million of these sets have been sold through offline partnerships.

Yang Zhenlin, assistant to the company's chairman, said their factory workshops had to resume operations ahead of schedule after the Spring Festival holiday, with their hundreds of staff members working tirelessly to replenish inventory. "We had great confidence in the film even before its release, so we promptly secured the copyright," Yang told Xinhua.

This week, on e-commerce platforms, some stores have gradually restored supplies. Businesses in the second-hand market have remained brisk.

Fans have also discovered that the gold bracelets they had purchased after the first Ne Zha film came out in 2019, with designs inspired by the "universe ring" on Ne zha's arm, have tripled in value on the second-hand market, thanks to both the success of Ne Zha 2 and a higher gold price.

Some fans have gone so far as to make their own versions of it, using wood, plasticine, flour and even thread. Coinciding with the Lantern Festival on Feb 12, netizens shared creative improvisations of Ne Zha-shaped glutinous rice dumplings, a festive food.

Miao Lingyi, a 10-year-old girl living in East China's Shanghai, expressed her admiration for the character Ao Bing, the son of the Dragon King, stating her desire to use her pocket money to buy a collectible featuring him. "I really love the character and I don't mind waiting a while for the collectible," she said.

According to experts, the film's huge success stemming from its captivating plot and stunning special effects, has evoked emotional attachment and resonance with characters among its audiences, while some related products feature limited edition designs -- thereby enhancing their value as collectibles and stimulating consumer purchasing enthusiasm.

Ye Guofu, founder of MINISO, a Chinese retailer known for its fashionable but affordable household products, said that Chinese consumers' growing focus on emotional value attached to commodities, particularly among the younger generations, is expected to further drive the consumption of IP-featured products, such as those related to domestic animated films and games.

With this lucrative market rapidly expanding, experts have stressed the importance of both IP innovation and product quality, while warning against risks of market irregularities and intellectual property rights violations.

Law professor Zheng Ning with Communication University of China suggested that market regulators strengthen oversight to combat potential price gouging and the sale of substandard products -- thereby ensuring a more orderly market environment.

Zhao Liangshan, a lawyer in Northwest China's Shaanxi province, cautioned that handcrafted items made for personal use are not allowed for commercial purposes.

As Ne Zha 2 enters international markets, Hunan Sunny & Sandy Toys Manufacturer Co Ltd aims to target global markets -- particularly in Asia, North America and Europe.

The film is set to be screened in various countries, including the United States, Canada, Australia, New Zealand, South Africa, Egypt, Singapore, Japan and the Republic of Korea, with premieres in Los Angeles and Sydney having received positive responses from professionals and fans alike.