Retail phenomenon

The rapid sales growth of these specialized goods is an indication of the purchasing power of the tech-savvy younger generation. Since May, topics like "Gu zi shops reviving old malls" have been trending online, bringing the sales phenomenon to the attention of the public.

"This year, in particular, gu zi shops are becoming increasingly prevalent in shopping malls around the country, from first-tier cities to second, even third-tier cities," said Beijing native, Xue, the co-founder and co-owner of Ciyuan Xiagu, who asked only his family name be used.

"Locations such as Beijing's Wangfujing Xiyue Shopping Center, Shanghai's Bailian ZX Creative Plaza, and Wuhan's Trend Box X118 have undergone transformations, dedicating entire floors or even entire buildings to these stores and cultural spaces," said the 45-year-old, adding his shop had experienced a surge in sales since May.

Xue, who studied and lived in Japan and previously worked for a Chinese toy company, is a veteran of the anime world.

"To enter this industry, first, you have to genuinely like it. Second, you need to understand its nuances. If you don't know anything about anime and how it works, how can you find good suppliers?" he asked.

For many anime enthusiasts, collecting merchandise is an integral part of their fandom experience, he said.

"Building an impressive anime merchandise collection not only allows fans to express their love for their favorite characters and series, but also provides a sense of connection to the characters and stories they hold dear," Xue said.

He launched Ciyuan Xiagu in December 2023 with three friends who share the same passion. "The mall is one of the first in Beijing highlighting shops pivoting to fit the demands of a digital age. It has become one of the most popular destinations for gu zi lovers," he said.

While facing competition from online sales, Xue said Ciyuan Xiagu opened its second shop in Chongwenmen in downtown Beijing. A third shop will be launched this October in Xidan, another major commercial area in the capital.

Different from traditional figurines and action figures, gu zi primarily appeals to high school and university students, said Xue's friend Liu, another co-founder and co-owner of Ciyuan Xiagu, who also wanted to only use his family name.