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Embracing Japanese animation to captivate Chinese audiences
A broader vision for China’s youth market
Independent Chinese film distributor Road Movies has experienced notable success with various imported Japanese animation films, capturing the attention of the youth demographic. However, the company believes that to truly engage this audience, a more comprehensive approach is necessary—one that encompasses intellectual property (IP), fandom, events, retail, and merchandising.
“Our aim is to be a Chinese Disney—not in scale, but as an integrated service,” explained the company’s founder and CEO. He articulated this vision during a seminar in Tokyo, organized by TIFFCOM, the rights market associated with the Tokyo International Film Festival.
The allure of Japanese content
In a market where imported films have faced challenges, with their share plummeting to less than 15% last year, Japanese films have demonstrated resilience. According to the CEO, top Japanese animation titles can perform as well as Hollywood studio movies in China, though there are fewer of them. Movies like Suzume, The First Slam Dunk, and Spy x Family Code: White have achieved remarkable box office success in China.
Stronger IP backed by television series
Japanese film IP is becoming stronger in China, supported by TV series widely broadcasted in the country, boasting a highly active fan base. This phenomenon persists despite the geopolitical tensions between China and Japan. The distribution of Japanese content on Chinese TV and streaming platforms significantly impacts fourth and fifth-tier cities where Hollywood films have less influence compared to major metropolitan areas.
Strategic shift towards Japanese anime
Initially, Road Movies imported and co-distributed major commercial titles from independent Hollywood sources. Over the past five years, the focus has shifted to Japanese anime, now constituting around 60% of the company’s business. Recognizing the vast potential in the animation, comics, and games (ACG) market in China, the company predicts it will reach RMB102 billion by 2025 and RMB148 billion (approximately $20 billion) shortly thereafter. This growth comes at a time when theatrical box office revenues are declining.
Innovating with GuGuGuGu
To capitalize on this burgeoning market, Road Movies launched a subsidiary named GuGuGuGu, which aims to serve as a one-stop-shop for interactivity, merchandising, and events. Operating at what the CEO dubbed “China speed,” this new unit has worked on 67 different pieces of content, launched 1,600 consumer goods items, developed a fan base of over 1 million, and established six physical stores, alongside 30 pop-up stores in Chinese multiplexes in collaboration with major brands like Marvel.
Activities have ranged from Your Name themed coffee to family movie events built around Haiku, stretching across 5,000 “theme theaters” and a Slam Dunk concert.
Embracing the future with emotional engagement
The ACG market’s rapid growth is driven by demographics shifting older and wealthier and fans who favor emotional values over practical use, fostering a preference for physical tickets over generic QR codes and content that can be downloaded for offline experiences.
“Our fans in China are enthusiastic and demanding,” remarked the CEO, emphasizing how this demographic is driving innovation and expansion within the animation industry.
Strengthening Japan-China entertainment ties
The next steps for the CEO’s enterprise include enhancing Japan-China entertainment connections and delving into production or co-production opportunities. “We aim to create a win-win model between Japan and China. We will open more shops, crave more IP, and eventually create our own,” he noted, adding that co-production not only avoids competing with Chinese business rivals but also makes the products more relevant to fans.
Road Movies’ ambitious vision and innovative strategies illustrate a significant transformation within China’s entertainment landscape, blending cultural elements and catering to an increasingly discerning youthful audience. The company’s robust approach could set a precedent for other distributors and content creators, paving the way for more integrated and dynamic media offerings.
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