“We all thought it would do well, but we didn’t expect it to break through so significantly.”
Zhong Chuan, chairman of Hangzhou Shouchuan Cultural and Creative (hereafter referred to as Shouchuan C&C), told 36Kr that it has been a long time since the cultural and entertainment industry has seen such a breakthrough product. “Everything is now focused on Black Myth: Wukong.”
Because of the collaboration with Game Science to release the physical collector’s edition of Black Myth: Wukong, Zhong and his team were able to feel the market’s enthusiasm firsthand. Priced at RMB 1,998 (USD 281) per set and limited to 10,000 units, the product sold out within a minute of its release. Even Xiaomi CEO Lei Jun was among the collectors, showing off his purchase on Weibo and X on August 27.
Beautiful Black Myth: Wukong box filled with some cool stuff.😎 pic.twitter.com/VkbQ3h22VY
— Lei Jun (@leijun) August 27, 2024
Before the game rose to fame, few people knew about Shouchuan C&C, and its reputation was largely confined to circles of collectors. But now, the company has been thrust into the spotlight, catching the attention of netizens everywhere. So, what kind of company is it? To learn more, 36Kr spoke with the founding team of Shouchuan C&C.
Targeting niche collectors
Shouchuan C&C was founded at the end of 2013 by a group of art and film enthusiasts who initially operated as a studio, handling outsourcing for games and films and providing art education and training. But in 2018, the company underwent its biggest transformation yet, shifting its entire business focus toward action figures.
This transformation was closely tied to Zhong’s personal passions. A devoted collector himself, Zhong began collecting various movie and game-related figures and sculptures as early as 2013 when he first embarked on his entrepreneurial journey. However, after amassing a large collection, he realized that many of these collectibles didn’t meet his expectations in terms of craftsmanship—sparking his desire to create his own.
In 2018, Zhong and his partners decided to develop their first figure, starting with Marvel’s fan favorite Loki. “This character is both heroic and villainous, loved by both men and women, with a very full personality,” Zhong explained. At that time, Marvel was celebrating its tenth anniversary, having witnessed numerous milestones, including the release of Avengers: Infinity War.
The 1:1 Loki bust they created quickly gained attention online, even catching the eye of Marvel itself. Marvel’s vice president CB Cebulski personally reached out, offering them the opportunity to license Marvel characters. The olive branch was extended, just like that.
After securing a license from Disney and Marvel in 2018, Shouchuan C&C acquired further licenses in 2019 from Warner Bros., including for franchises like the DC universe, The Lord of the Rings, The Hobbit, and Harry Potter. With these licenses in hand, Shouchuan made a bold decision to go all-in on movie and game derivatives, focusing on sculptures and action figures.
Today, Shouchuan C&C operates two brands:
- QueenStudios, established in 2018, specializes in non-articulated sculptures aimed at high-end collectors, with an average ticket price of around RMB 20,000 (USD 2,816) and the most expensive sculptures reaching RMB 500,000 (USD 70,400).
- INART, launched in the second half of 2022, produces articulated action figures at a 1:6 scale, each priced between RMB 2,500–3,500 (USD 352–493).
During its early exploration with the QueenStudios line, Shouchuan C&C honed a set of core technologies—perfecting the intricate techniques for hair, eyes, skin, and paint on its figures. These advancements were then applied to the INART brand, allowing Shouchuan to offer more affordable and accessible action figures, thereby setting a new standard in a different segment of the market. The first INART product, a Joker action figure, was a major hit, and the collaboration with Black Myth: Wukong further showcases Shouchuan’s mastery in applying its action figure technology to a Chinese AAA game.
In the gaming community, Liu Zhuo, co-founder of Shouchuan C&C, has known Yang Qi, co-founder of Game Science, for years. Their real collaboration began in 2020 when Game Science released its first viral video. Although the initial collaboration was shelved due to the early stage of game development, it was revived in 2022 after Wukong’s design was finalized.
“Yang showed us all the Wukong designs, both 2D and 3D, and sought our input,” Liu told 36Kr. Initially, they prioritized the classic tigerskin skirt design, reasoning that the outfit’s clear-cut association with Wukong would resonate with players. However, upon seeing the design, they found it too simple for the game, offering little room for Shouchuan’s technical prowess to shine.
Ultimately, the tigerskin skirt design was scrapped in favor of the version that was eventually released, which combined rich in-game character details with the distinctive features of Wukong. Of course, creating this action figure was no easy task.
Liu explained to 36Kr that, due to the need for mass production molding, the figure couldn’t have too many layers of hair strands, but it also couldn’t look clumpy and needed to maintain a sense of layering. To achieve this, they sculpted the hair on Wukong’s chest. The clothing details were even more complex, including a combination of a black robe, a robe adorned with Buddhist prayer beads, double-layered shoulder armor, and green silk threads.
“Even for regular clothing, it needs to be custom-tailored to ensure it doesn’t look bulky, but when scaled down to 1:6, the challenge is to make it look unbulky while still allowing the figure to move,” Liu said. He noted that the biggest gain from this collaboration with Game Science was optimizing the entire production process internally. “10,000 sets are a significant challenge for us. Since we’ve chosen a customized route, there’s a high threshold and barrier to entry.”
Liu added that, even though the process involves handcrafting, a way to industrialize it still needs to be found, which requires a high level of team coordination. “In 2024, our INART production line will see significant improvements, and our shipment volume this year is expected to at least double compared to last year.”
From local to global
The success of Black Myth: Wukong has left many people excited, believing that Chinese AAA games are entering a new era of growth. In 2018, Shouchuan C&C was experiencing a similar moment.
At that time, Pop Mart had not yet gone public, and the market for collectible action figures was still in its infancy. Few Chinese brands were involved in this space, and most had been founded only recently. In contrast, in Japan, the US, and even in regions like Hong Kong and Taiwan, companies had been established for a decade or more, with some having a history of several decades. Compared to them, China was just getting started with collectible action figures.
The collaboration with Game Science marks Shouchuan C&C’s first partnership with a domestic IP. Prior to this, it primarily collaborated with classic Western film IPs—a testament to the cultural influence of Western soft power and the long-term cultivation of IPs by their operators.
“Marvel was on the verge of bankruptcy before 2008, but after Disney took over, it took ten years, from the first Iron Man movie in 2008 to Avengers: Infinity War in 2018, for it to become a household name.” In Zhong’s view, there are now many excellent IPs in China, but just because the first one is a hit doesn’t mean the IP is established. “An IP must accompany a generation, or even several generations, to become deeply rooted in people’s hearts.”
A strong cultural IP has immense value across its derivative industries, such as sculptures and action figures. Zhong noted that, in Western markets, derivative products can account for up to 70% of the market share, while movie box office, game revenue, music, and books combined may only make up 30%.
Behind Shouchuan C&C’s growth is a relatively smooth financing process. The company secured Series A funding in 2020 and completed a Series B round in 2021. However, the pandemic marked a turning point, directly affecting consumption, with the market for sculptures and action figures inevitably impacted.
Before the pandemic, Shouchuan C&C focused on the domestic market in China. But starting in the second half of 2023, it began to pivot toward overseas and global business, including markets in the US, Southeast Asia, Australia, and Europe.
Building a brand matrix and strengthening the upstream supply chain are also key areas where they plan to intensify efforts. “We don’t have any short-term financing needs because we have sufficient funds. Next year, we might consider additional financing,” Zhong said.
Shouchuan C&C also plans to continue its collaboration with Game Science. “We have prepared a lot of content,” Liu told 36Kr. Additionally, Shouchuan C&C is exploring partnerships with Chinese film IPs. Besides films and games, the company has recently expanded into the music industry by signing a deal with Michael Jackson’s copyright holders, with future plans to extend into the sports field.
It’s worth noting that different countries and regions, and even different age groups, have varying preferences for IPs. Shouchuan C&C’s approach is to develop multiple projects in parallel and conduct market research through exhibitions, fan gatherings, and other means to understand the IP and character preferences of different markets.
Shouchuan C&C once conducted a survey on Facebook about the most popular movies and characters from different decades. The results showed that the most popular in the 1990s were Terminator and Bruce Lee. However, a recent market survey in the US revealed that the most popular American television series is The Boys, a show that hasn’t gained much traction in China. Based on such research, it plans to develop different trendy derivatives for different regions.
“The sustainability and impact of an IP are its most important soul. Whether it can accompany a generation or several generations is extremely important,” Zhong said. Shouchuan C&C initially started with Western IPs, but in the future, as the cultural industry in China flourishes, the company expects Chinese animation to also account for a significant proportion of its portfolio.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Yang Yafei for 36Kr.