ACG boom redefines China's retail landscape

China’s ACG (Anime, Comics, and Games)¹ industry has grown significantly over the past five years at a compound annual rate of over 30%, driven by young, tech-savvy consumers. Market projections anticipate the market size will exceed 270 billion yuan in 2024. The industry now primarily includes upstream content creators, midstream distribution platforms, and downstream providers of products, events, and services.

Figure 1: China ACG industry chain

Source: Company websites and publicly available data, JLL Research

The market growth has prompted ACG brands in China to focus more on offline expansion. ‘Guzi’ stores are expanding rapidly and becoming a popular destination for young Chinese consumers. These stores are fandom-driven and sell licensed anime and game figurines, which are usually priced from 10 to several hundred yuan. March Monster, for instance, has opened over 30 stores in 2024 as of November, exceeding its yearly target, and plans for more aggressive expansions in the next two years. This growth also reflects the increasing spending capacity of China's youth. 

Figure 2: Store count of select ‘Guzi’ retailers

Source: Official social media accounts of various brands, JLL Research

Shopping malls and department stores have emerged as preferred venues for ‘Guzi’ stores and ACG-related retail initiatives. In Shanghai, the Nanjing Road submarket has become a hub for malls dedicated to ACG themes, accommodating venues like Bailian ZX Creative Plaza and New World City. Bailian Group reported that the Bailian ZX Creative Plaza, China's first ACG-themed mall, attracted around 9.5 million visitors, generating over 300 million yuan in sales in 2023. We also observed growth of ACG-related leases in lower-tier retail markets such as Chongqing, Chengdu, Xi’an, and Wuhan. For example, in Q3 2024, Chongqing saw the opening of 26 new ‘Guzi’ stores in JLL-tracked shopping malls and department stores, covering around 10,000 sqm and becoming a key driver of retail leasing. High-profile retail centres like Chongqing Fangyuan Live, Chengdu Tianfu Hot and Wuhan’s Trend Box X118 have also dedicated entire floors—or even the whole project—to ‘Guzi’ stores and ACG-cultural spaces.

Integrating ACG elements into the retail landscape has significantly improved the performance of certain projects. For example, Chengdu’s Tianfu Hot reported a 150% rise in monthly sales in the first five months of 2024 after ACG brands comprised over 50% of its offerings. The success of these projects has inspired many older malls to adopt similar strategies. Over 25 retail projects in 21 major Chinese cities tracked by JLL have incorporated or are implementing ACG elements, with some repurposing ageing department stores.

The recent global success of the 'Black Myth: Wukong' game has further bolstered the confidence in China's ACG industry. We anticipate a continuous expansion of China's ACG market. By incorporating ACG elements, retail projects have the opportunity to increase retail traffic and generate new revenue streams beyond ‘Guzi’ stores’ figurine sales and rental contributions. Featuring a cluster of ACG-themed stores with wide product range, introducing ACG-related pop-ups, hosting regular ACG events, and creating immersive ACG experiences coupled with active community engagement, are all important approaches. While ACG may not appeal to all demographics, a balanced approach to integrating it into the retail landscape is crucial for long-term success.

^{1 Refers to games with anime-style aesthetics or games adapted form manga or anime.}