In a rapidly evolving entertainment landscape, one Chinese distributor is making waves by harnessing the power of Japanese animation. Road Movies, an independent film company, has found remarkable success in bringing beloved anime titles to Chinese audiences, but their ambitions extend far beyond traditional distribution. With a holistic approach that encompasses IP, fandom, events, retail, and merchandising, they are positioning themselves as a Chinese powerhouse akin to the global juggernaut, Disney.

Tapping into the Passion of Chinese Fans

Leveraging the Popularity of Japanese Animation

In a market where imported films have struggled to maintain a significant foothold, Japanese animation has managed to hold its own. Cai Gongming, the entrepreneur founder and CEO of Road Movies, has witnessed firsthand the remarkable performance of top Japanese animation titles in China, which can rival even the box office dominance of Hollywood studio movies. This success, he believes, is rooted in the strong fan base cultivated through the widespread availability of Japanese TV series in China, despite the tense geopolitical relationship between the two countries.

Catering to the Evolving Preferences of Chinese Consumers

The growth of the animation, comics, and games (ACG) market in China is a testament to the shifting demographics and changing consumer preferences. As the population grows older and wealthier, fans are increasingly favoring emotional values over practical utility, leading to a preference for physical tickets over generic QR codes and content that can be accessed offline. This digital backlash has created a fertile ground for Road Movies to capitalize on the enthusiasm and demands of Chinese fans.

Expanding Beyond Traditional Distribution

Road Movies' journey began a decade ago, with a focus on importing or co-distributing major commercial titles from independent Hollywood sources. However, in the past five years, the company has refocused its efforts, making Japanese anime its biggest film category and representing upward of 60% of its business. This strategic shift has been driven by the company's ambition to become a "Chinese Disney" – not in scale, but in terms of being an integrated service provider.

Diversifying into Interactivity, Merchandising, and Events

To achieve this vision, Road Movies has established a new subsidiary, GuGuGuGu, which aims to be a one-stop-shop for interactivity, merchandising, and events. Operating at "China speed," the new unit has already worked on 67 different pieces of content, launched 1,600 consumer goods items, developed a fan base of over 1 million, and set up six physical stores. Additionally, they have collaborated with brands like Marvel to establish 30 pop-up stores in Chinese multiplexes, further expanding their reach and engagement with fans.

Fostering a Vibrant Ecosystem

The company's diversification efforts have resulted in a diverse range of fan-centric activities, from "Your Name" coffee to events built around the family movie "Haiku" that extended to 5,000 "theme theaters" and a "Slam Dunk" concert. By creating a rich and immersive ecosystem, Road Movies is tapping into the growing demand for emotional experiences and physical engagement among Chinese consumers.

Embracing the Future: Production and Co-production

Looking ahead, Cai Gongming's vision for Road Movies' future involves a deepening of Japan-China entertainment connections and a foray into production or co-production. The company aims to create a "win-win Japan-China model," exploring opportunities to acquire more IP and develop its own intellectual property. This strategic shift not only allows Road Movies to avoid direct competition with Chinese business rivals but also enables them to create content that is more relevant and engaging for their ever-growing fan base, with the eventual goal of expanding into Chinese animation as well.