Michelle ThompsonChina’s economy may be facing difficulties, but its cinema industry has witnessed an unprecedented few months of success, driven by the strong appeal of domestic films to young women.
Between June and September, box office earnings reached a staggering 23.44 billion yuan ($3.2 billion), marking the highest ever recorded for this period. This data, sourced from China’s prominent box office tracking apps, Dengta and Maoyan, highlights the industry’s impressive performance.
The surge in ticket sales can be primarily attributed to a scorching summer season. During the traditional peak period from June to August, ticket revenue soared to an extraordinary 20.6 billion yuan ($2.8 billion), surpassing the previous summer peak of 17.8 billion yuan ($2.4 billion) in 2019.
In the past four months, over 570 million individuals flocked to theaters, and a significant majority of them were women.
For the top five films, women comprised 61% of the audience, marking the highest proportion ever recorded, as reported by Dengta, an entity with backing from Alibaba (BABA). Approximately half of these moviegoers fell within the 20 to 29-year-old age group.
This remarkable box office achievement serves as a rare bright spot in China’s economy, which experienced a loss of momentum after an initial resurgence following three years of stringent COVID-19 restrictions. Analysts note that history suggests movies tend to flourish during challenging economic times, as they offer an affordable means of escapism.
Stanley Rosen, a professor specializing in political science and international relations at USC’s US-China Institute, commented, “Consumption has significantly decreased in China for items such as housing and automobiles. However, people can still afford to enjoy a trip to the cinema. It provides a welcome escape from some of the prevailing economic gloom and offers a reprieve from depression.”
China’s gross domestic product (GDP) expanded by a mere 0.8% in the second quarter when compared to the preceding three months. Furthermore, the crucial property market, in which Chinese households invest 80% of their wealth, has remained in a slump. People are increasingly holding onto cash due to mounting uncertainties about the future.
Stanley Rosen drew a parallel between China’s current situation and the United States during the Great Depression in the 1930s. In both cases, people faced financial constraints, yet box office revenues surged for films featuring renowned stars like Fred Astaire and Ginger Rogers.
It’s pure escapism.
In recent months, “Barbie” and “Oppenheimer” have been reigning supreme at the global box office. However, in China, it’s been a different story, with the most popular movies all hailing from China: the crime thriller “No More Bets,” the romantic mystery “Lost in the Stars,” and the epic fantasy “Creation of the Gods I: Kingdom of Storms.”
Perry Peng, a 23-year-old gallery assistant in Shanghai and a devoted cinephile, expressed her amazement at the impressive quality of Chinese films she’s had the opportunity to watch over the summer.
“We haven’t witnessed such exceptional domestic films in a long while. It’s surprising to see the level of quality they’ve achieved,” Perry Peng remarked. She also mentioned her enjoyment of “Oppenheimer” and “Barbie,” the latter of which was distributed by Warner Bros, a part of WarnerBros. Discovery.
Perry’s favorite film this year was “Creation of the Gods I: Kingdom of Storms,” a martial arts fantasy film inspired by 16th-century Chinese fiction. She shared her perspective, saying, “I’ve been a dedicated fan of American and European movies. However, I suddenly felt that China seemed to have its own ‘Lord of the Rings’.”
Perry Peng noted that her generation, born after 2000, has increasingly become the driving force behind consumption. There’s been a notable shift in what and how they consume. She explained, “We want to live in the moment, not thinking about the future. Some of us don’t even want to make social security payments. We just want to enjoy life while we can and seize the day.”
Pency Peng, Perry’s sister who works in the finance industry in Hong Kong, emphasized that movies are an affordable means of temporarily escaping their troubles. She added, “Things like houses and cars feel distant or beyond our control. Our lives are already challenging, so why can’t we enjoy things that bring us happiness?”
Interestingly, it’s the audiences in smaller cities and towns that have experienced the most significant growth this year, despite the overall economic challenges. Xuguang Chen, a professor at Peking University’s School of Arts, pointed out that from a consumer’s perspective, going to the movies is more suitable for low- and middle-income audiences.
The improved quality and variety of films offered this summer have played a pivotal role. For instance, “No More Bets,” the highest-grossing film of the summer with sales of 3.52 billion yuan ($480 million), resonated with lower-income audiences due to its anti-fraud theme.
Fueled by the influence of women.
The fact that women have been the driving force behind China’s recent box office success is surprising, especially in light of the gender imbalance in the country. According to 2022 statistics, the male-to-female ratio stands at 104.7 to 100.
The film “Lost in the Stars,” with its feminist message and reflection of real-life events, recorded the highest percentage of female viewers at 67%. This suggests that despite the numerical disadvantage, women in China are increasingly wielding significant spending power, warranting more investment targeted at catering to their preferences.
Kevin Tran, a senior analyst at Morning Consult, emphasized in a recent report that, “Men may outnumber women in China, but the latter group’s increasing spending power justifies further investment aimed at serving them.” Furthermore, he pointed out that Hollywood, currently struggling to regain its once-dominant position in the Chinese box office, would benefit from appealing more to the country’s female audience.
As of this year, American films have only accounted for approximately 14% of China’s box office, the second largest in the world. If this trend persists until the end of 2023, it would represent the lowest annual share for Hollywood in more than a decade, excluding the pandemic-affected years.
Hollywood’s declining share in the Chinese film market over recent years can be attributed to a combination of factors, including stricter censorship, deteriorating bilateral relations, an increase in nationalist sentiments driven by state propaganda, and the growing competition from locally made films.
Kevin Tran suggested that international studios should pay greater attention to targeting Chinese women in their marketing campaigns, especially for genres such as romantic comedies and musicals, which are favored by this demographic. He noted, “In the year ahead, some studios may become more enthusiastic about catering to female moviegoers, given that fewer women in China are getting married, which is likely leaving them with more time for leisure activities like going to the movies.”
