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What comes after the blockbuster success of a Chinese animation? Toys and other collectible products, of course.

Sales of character-themed products related to the movie Ne Zha 2, the first film to gross more than $1 billion in a single market globally, have been red hot. From toys and apparel to collectible cards, demand for Ne Zha-themed promotional products is soaring, as cities across the country compete for recognition as the mythical hero's birthplace.

In Xiangtan, Hunan province, Hunan Sunny and Sandy Toy Manufacturing Co — the exclusive authorized manufacturer of 3D plastic food-related toys based on the film — is operating at full capacity to meet a tidal wave of demand.

Yang Zhenlin, assistant to the company's chairman, said the first batch of Ne Zha-themed "blind box" toys supplied to a chain of snack stores sold out before Spring Festival, which fell on Jan 29. With a blind box, you can't see which toy figure is inside until you open it, so it's a fun surprise.

The company has produced toys, based on six main characters in the film, that sell for 11.5 yuan ($1.57) each, Yang said. More than 450,000 sets of Ne Zha-themed toys had been sold as of Monday through livestreams on Douyin, with revenue reaching 30 million yuan. That ranks first on the platform's board game and collectibles category, he said.

The company is also negotiating to get the intellectual property rights for two more characters from the film and intends to start producing those toys as well, he said.

"We expected that the toys would be popular based on the success of the first movie of the franchise, but the popularity of Ne Zha 2 has far exceeded our expectations," Yang said. "We think it will be even more popular in the coming months, with sales revenue of related products reaching 200 million yuan for the year."

The movie is expected to be a large-scale hit in overseas markets as well, so the company is preparing to sell the toys abroad, including in Southeast Asia, Japan, North America and Europe.

Sales of other products, such as limited-edition cards and badges, have also skyrocketed since the movie's release.

Chen Qi, general manager of Guangdong Henglitai Crafts Co in Dongguan, Guangdong province, which produces Ne Zha-themed cards, refrigerator magnets and badges, said the company made over 300,000 sets of such products in early January, and all have sold out. Workers are racing to produce more merchandise for the movie to meet public demand, he said.

"The success of Ne Zha 2 shows that Chinese animation can compete with that of the Japanese and American giants," Chen said.

Li Baochuan, an expert in cartoon history at Hangzhou Normal University, said that derivative products are more than just merchandise. For the younger generation of consumers, they represent identity and a form of social currency.

The remarkable sales success of the Ne Zha 2 products has also sent a positive signal to the industry, Li said.

Meanwhile, several cities across China are now vying for the title of Ne Zha's birthplace, capitalizing on the film's success to boost tourism. The playful controversy has become a spectacle in itself, with some cities claiming to have "proof" of the character's origins.

On Feb 5, the first working day after the Spring Festival holiday, tourism and culture authorities in Tianjin municipality released a video claiming that Ne Zha was born in the city and went to primary school there.

The next day, Anhui authorities said that images of Ne Zha could be found all over the province's Guzhen county, with many sculptures and wall paintings of him. Shortly thereafter, authorities in Yibin, Sichuan province, announced that Ne Zha was born in its Nanguang township, and it released a list of cultural sites and landmarks inspired by the character.

Song Yangyang, deputy dean of the Institute for Creative Industries Technology at Renmin University of China, said the logic behind local governments competing for cultural ownership of Ne Zha is easy to understand: It generates a buzz, enhances the city's reputation and ultimately attracts tourists.

But he also said he is not optimistic about the competition for so-called hometowns or birthplaces. Instead of vying for the title of hometown, he suggested focusing on adding genuine value through such things as tourism services, cuisine or other tangible products beyond toys.