The name "Nezha," derived from classical Chinese mythology, is imbued with an enduring aura of legend. However, this moniker presents contrasting fortunes across different industries. On the silver screen, "Nezha" achieved box office glory, with "Nezha Reborn" surpassing 8.3 billion yuan in revenue as of February 10, 2025 (including presales), ranking 31st globally. Maoyan Professional Edition predicts an eventual total exceeding 12.05 billion yuan. Conversely, in the automotive sector, "Nezha" has witnessed a dramatic shift from unbridled success to internal and external challenges.

"Nezha Reborn" promotional poster

Nezha Auto: from past triumphs to current struggles

Nezha Auto, a smart electric vehicle brand under Hetong New Energy Automobile Co., Ltd., launched in June 2018, quickly stood out by producing its 10,000th vehicle in 2019. Riding the wave of "Nezha Reborn's" popularity, Nezha Auto collaborated with the Nezha IP for joint marketing, gaining significant attention (though later facing trademark disputes). This strategy not only boosted Nezha Auto's brand recognition but also established it as a model of automotive marketing.

Leveraging the cultural IP's traffic, Nezha Auto achieved rapid growth in brand exposure and market share. However, as time passed, the marketing trend waned, and Nezha Auto's problems became apparent. Since 2023, sales have declined by 16% annually, and the company now faces work stoppages, layoffs, store and factory closures, website malfunctions, and equity freezes. From 2021 to 2023, cumulative losses exceeded 18.4 billion yuan, with an average loss of 54,000 yuan per vehicle, revealing both operational challenges and a lack of technological R&D and core product competitiveness.

Recently, an audio recording of a customer service representative abusing a car owner surfaced online, once again putting Nezha Auto in the spotlight, exposing deficiencies in management. The incident occurred when a Nezha Auto owner called customer service to address an issue with their vehicle's maintenance. The representative failed to hang up promptly and used inappropriate language. While the company responded swiftly by suspending the employee, this incident undoubtedly damaged consumer trust.

To revive its brand, Nezha Auto has attempted internal reorganization and strategic adjustments. In December 2024, management underwent significant changes, with former CEO Zhang Yong transitioning to an advisory role and founder and chairman Fang Yunzhou taking over as CEO. The company introduced reforms, including organizational optimization, employee stock ownership, strategic focus, and overseas market expansion, aiming to turn around through internal reorganization and supply chain improvements. However, issues like chaotic management, tight capital chains, and lack of core technologies remain significant obstacles.

How can cultural IPs propel brand effectiveness to new heights?

The success of the Nezha animated film is built on a foundation of creativity and high-quality production. The director's team meticulously crafted the script and dialogue, and the post-production team made continuous breakthroughs in visual and special effects, showcasing a mature team's perfect balance of artistic and commercial requirements. In contrast, Nezha Auto relied more on the IP's name and market buzz, lacking continuous investment in product technology and service quality. Both benefited from the "Nezha" symbol early on, but their respective internal resources and innovation capabilities ultimately determine their fate.

Zhijia Zuiqianyan believes that while marketing can attract short-term attention, only internal strength and product quality can sustain long-term market competitiveness. The Nezha film prioritized content, crafting a moving story with craftsmanship, ultimately winning audience recognition. If Nezha Auto relies solely on the IP effect without investing in technological R&D and management upgrades, even past successes will be overshadowed by market elimination. True brand competitiveness stems from continuous endogenous growth and core competitiveness enhancement.

For consumers, choosing a product is not just about the brand name; it's about the genuine and stable experience it provides. Nezha Auto has disappointed consumers with issues like insufficient product capabilities and poor after-sales service. The customer service abuse incident sent a strong negative signal, reflecting corporate culture and internal management issues. Once consumer trust is broken, future marketing activities may struggle to compensate.

Amid internal and external challenges, Nezha Auto is conducting strategic adjustments, aiming to reverse its decline through reorganization, cost reduction, efficiency enhancement, and overseas expansion. However, in fierce market competition and capital storms, superficial marketing and short-term measures are insufficient. The domestic new energy vehicle market is witnessing unprecedented internal competition, with major players increasing R&D investment and new technologies emerging. If Nezha Auto can break through in core technologies, it may secure a future market foothold. Its current situation reflects the severe test faced by the entire automotive industry during transformation and upgrading.

What is the core competitiveness for survival?

To emerge from its predicament, Nezha Auto must prioritize R&D and product innovation. The "Nezha" name once garnered valuable initial attention, making the brand a marketing legend. Now, as the initial glow fades, real competitiveness is crucial for market establishment. In new energy vehicles, core technology and intelligence are key determinants. Automotive enterprises should invest in areas like battery technology, intelligent networking, and autonomous driving, establishing technological barriers through independent R&D and external collaboration. Only by possessing core competitiveness can one remain invincible in an evolving market.

Corporate management reflects not only operational efficiency but also brand image. The customer service incident highlights the need for improvement in employee training, stress management, and service awareness. Establishing a scientific incentive mechanism, enhancing internal communication, and fostering a customer-centric culture that emphasizes details are essential for future transformation. By making employees aware they are brand "spokespeople," Nezha Auto can restore consumer trust and enhance overall service levels.

While currently struggling, Nezha Auto can still innovate by combining traditional culture with modern technology and intelligent production. It can innovate in product design, brand storytelling, and user experience, drawing from animated film success to reflect cultural heritage in products, achieving marketing and product improvements. Through deep cultural and technological integration, Nezha Auto can find a path that inherits classics while meeting modern market demands.

2025: Cultivating Opportunities Amidst Crisis

Amid internal and external pressures, Nezha Auto's 2025 turnaround hinges on rebuilding consumer trust. The company must promptly address negative incidents, improve after-sales service, and convey its commitment to improvement through transparent management and timely information feedback. Only by mending consumer trust can Nezha Auto pave the way for transformation.

Cross-border collaborations are becoming new drivers for overcoming difficulties. Nezha Auto can leverage resources from culture, technology, and the internet to explore new models that meet market demand and convey brand culture through joint innovation. Deep collaborations with film and technology enterprises can help find new breakthroughs in fierce competition, realizing resource sharing and complementary advantages.

Expanding globally is also a viable strategy. While the domestic market is competitive, the global market offers broader development space. By leveraging its brand popularity to accelerate overseas expansion, absorbing international technology and management experience, and securing a place in the global industrial chain, Nezha Auto can alleviate current pressures and inject vitality into future development. A globalization strategy is crucial for Nezha Auto's crisis breakthrough.

Conclusion

The name "Nezha" carries the depth of mythological legends and the complexities of eral changes. The animated film showcased how a cultural IP can gain global acclaim through its connotation and quality. In contrast, after leveraging marketing dividends, Nezha Auto struggled due to internal mismanagement and technical shortcomings. In today's competitive brand landscape and rapidly changing market, Nezha Auto's situation serves as a wake-up call: short-term fame and traffic are catalysts, but only continuous core competitiveness enhancement ensures future invincibility. Whether in technological R&D, internal management, or full-chain ecosystem construction, enterprises must fundamentally transform and break through.

As a domestic brand, we hope Nezha Auto can experience a rebirth, akin to Nezha in "Nezha Reborn," who broke magical confinement after being shattered by a curse. We eagerly anticipate Nezha Auto's self-rescue and hope its predicament inspires more enterprises to reflect on their development paths, embracing a healthy transition from marketing to endogenous innovation. After all, a brand's true charm lies not just in its name but in the enterprise's inherent and continuously improving spirit of bravery and breakthrough.