In a captivating exploration of China's evolving film landscape, industry veteran Cai Gongming, founder of Chinese distributor Road Pictures, shed light on the remarkable surge of Japanese anime as a dominant force in the mainland market. Amidst the continued dominance of local, Chinese-language films, Cai also revealed the gradual resurgence of Hollywood's presence, signaling a dynamic shift in the country's cinematic preferences.

Anime Mania Sweeps China's Theaters

Anime Conquers the Box Office

Road Pictures has spearheaded the charge, scoring major hits in 2023 with Japanese anime titles like the blockbuster "Suzume," which grossed a staggering $117 million, and "The First Slam Dunk," which raked in around $84 million. This remarkable performance has driven a 90% year-on-year increase in the total box office for the anime category in the Chinese market.

Diversifying the Anime Landscape

Cai noted that while the combined box office of Japanese anime movies remains on par with 2023 levels, the per-picture average has declined as twice as many titles have been released. Road Pictures' biggest hits this year include "Spy x Family Code: White," which earned around $40 million, and the re-release of the beloved "Your Name," which brought in $19 million. Notably, Studio Ghibli's "The Boy And The Heron," distributed by Alibaba Pictures, has emerged as the highest-grossing Japanese anime title so far in 2023, with an impressive $110 million in box office receipts.

Unlocking the Appeal of Anime

Cai attributes the strong performance of Japanese anime in China to a combination of factors, chief among them the powerful IP attributes that resonate with young audiences. "Japanese anime titles are very strong because of their IP attributes – young people know the IP because it has reached them through different channels over many years," he explained. In contrast, Japanese live-action movies and their lesser-known stars have struggled to capture the same level of recognition among Chinese audiences.

Expanding the Anime Ecosystem

Cai also highlighted Road Pictures' proactive marketing strategies, which have included the launch of a new venture, GuGuGuGu, that spans merchandising, physical stores, live events, and other forms of IP exploitation. This integrated approach has proven successful, as "Chinese audiences expect this integrated service – we learned this from the distribution of One Piece and other films, that they not only go to the theatre to see the movie, but also want to buy goods, meet friends and celebrate together," Cai noted.

Navigating the Regulatory Landscape

While Cai acknowledged the challenges in securing approvals from Japanese companies involved in each release, he highlighted the benefits of Japan's production committee system, which provides a more coordinated approach. In contrast, the regulatory framework in China can be more complex, as "lots of different business partners control different parts of the IP. They don't talk to each other, so it can be difficult to synchronize."

Evolving Censorship and Audience Demands

Cai also discussed the shifting regulatory landscape in China, noting that there are currently fewer restrictions in terms of the quotas and overall numbers of films imported into the market. He observed that censorship appears to be relaxing for some genre films, including the recent success of "Alien: Romulus," which surprised many with its ability to pass censorship, and the Taiwanese crime thriller "The Pig, The Snake And The Pigeon." Cai attributed this to the regulator's desire to meet the audience's demand for diverse content and drive strong box office performance.

Hollywood's Gradual Comeback

While Japanese anime has undoubtedly dominated the Chinese market, Cai acknowledged that Hollywood is making a gradual comeback. Despite a decline in market share since the pandemic, the combined box office of Hollywood movies is still three times that of Japanese anime. Cai cited the unexpected success of "Alien: Romulus," which grossed $110 million, and the ongoing re-releases of the entire Harry Potter franchise as signs of Hollywood's resurgence.

Shifting Audience Preferences

Cai attributed the strength of Japanese anime in China to the deep-rooted fanbase that extends beyond the silver screen, encompassing TV series, merchandising, and other media. In contrast, he noted that Hollywood has been losing its appeal among younger audiences, who have gravitated more towards the immersive and engaging experiences offered by the anime genre.