Ne Zha 2 shows how to tap domestic consumption potential

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion and not necessarily the views of CGTN.

Against the backdrop of the intense U.S. trade conflict against China with frequent additional tariffs, the uncertainties in the external market have increased significantly. Tapping into domestic consumption potential has thus become crucial for the stable growth of the Chinese economy.

The Chinese myth-based animated blockbuster Ne Zha 2, raking in an astonishing box-office revenue of over 15.7 billion Chinese yuan ($2.16 billion), including pre-sales and overseas earnings, has not only set new records in film history but also emerged as a quintessential example of China's efforts to explore domestic demand for new economic development.

The force of cultural consumption

The success of Ne Zha 2 is far from accidental. Its innovative interpretation of traditional culture, exquisite special effects, and profound themes cater to consumers' cultural consumption demands. After its release, the film quickly triggered a massive wave of viewership, driving a series of consumption behaviors and directly stimulating the domestic consumption market.

In terms of box-office figures, Ne Zha 2 not only brought huge profits to the film producers, distributors and cinemas but also, through the ripple effect across the industrial chain, boosted consumption in upstream and downstream industries. During the production process, substantial investment was poured into special effects, animation design, and other areas, promoting research and development of related technologies and talent cultivation.

Moreover, the film's popularity led to a surge in sales of peripheral products. From toys and stationery to clothing and accessories, products featuring the image of Ne Zha, the boy-hero with supernatural powers, sold out, expanding the boundaries of the consumer market.

The success of Ne Zha 2 also boosted cultural tourism consumption. Inspired by the film, many viewers flocked to the filming locations and related cultural attractions, bringing new growth opportunities to the local tourism, catering and accommodation industries. This integrated consumption model combining culture and tourism further tapped into domestic consumption potential, demonstrating the power of cultural consumption to drive domestic demand growth.

A multi-pronged approach

The escalation of the trade war has put China in a challenging external economic environment. The tariffs imposed by the U.S. have led to increased costs and reduced orders for Chinese export enterprises, suppressing external market demand.

Under such circumstances, tapping into domestic consumption potential and expanding domestic demand have become inevitable choices for China to withstand external risks and achieve sustainable economic development.

The domestic consumption market serves as a vital pillar for China's economic development. With China's large population base and steadily rising income levels, the consumption market enjoys broad development prospects. As the consumption structure continues to upgrade, people’s demands for service consumption in areas such as culture, entertainment, and tourism are growing rapidly.

The success of Ne Zha 2 demonstrates that by providing high-quality cultural products and services, it is possible to stimulate people's consumption willingness, unleash consumption potential and promote the prosperity of the consumer market.

Tapping into domestic consumption potential can promote economic growth, create jobs and stabilize the socio-economic order. As an important part of domestic demand, the cultural industry has a long industrial chain and a large employment capacity. The production, distribution and promotion of Ne Zha 2 created numerous job opportunities, covering a wide range of fields from direction, screenwriting and acting to special effects expertise and marketing, making significant contributions to employment stability.

To tap into domestic consumption potential by drawing on the success of Ne Zha 2, a multi-pronged approach is required. China is encouraging enterprises to innovate and explore traditional cultural resources to create high-quality cultural products, strengthening intellectual property protection and promoting deep integration of the cultural industry with tourism, catering and other industries to expand the consumer market.

Additionally, efforts are being made to optimize the consumption environment, strengthen market supervision, improve consumption infrastructure and leverage technology to innovate consumption models and enhance the consumption experience.

Meanwhile, in line with market demands, consumption hotspots such as green consumption and healthy consumption are being cultivated. Through policy guidance and promotional efforts, consumption upgrading is being promoted.

The phenomenal success of Ne Zha 2 provides valuable experience for China in tapping into domestic consumption potential during the trade war. By creating high-quality cultural products, promoting industrial integration, optimizing the consumption environment and cultivating consumption hotspots, it is possible to drive the growth of domestic demand.

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