(Yicai) May 8 -- Japanese anime giant Production I.G & WIT Studio and gaming icon SEGA opened their first-ever flagship stores in the heart of Shanghai during the recent Labour Day holiday, drawing crowds of young Chinese fans. Popular merchandise flew off the shelves, with several items selling out fast.

Both stores, which are located in the Bailian ZX Complex on Nanjing Road, are packed with exclusive, original, limited-edition merchandise and collectibles from some of Japan’s most beloved anime and game franchises. They also feature interactive zones where fans can try out games, animations and social networking experiences.

In the two-day soft opening before the official launch, the two stores raked in combined sales of several million Chinese yuan, equivalent to hundreds of thousands of US dollars.

Production I.G made a name for itself back in 1995 with the classic animated film ‘Ghost in the Shell.’ The film’s lasting popularity comes from the grand worldview of the original manga which continues to inspire new generations of creators who integrate fresh perspectives and storytelling rhythms to keep the animation relevant, Chairman and President Mitsuhisa Ishikawa told Yicai.

Shanghai has a huge anime fan base, so opening a flagship store here offers a unique opportunity to connect with Chinese fans through new works and copyrighted products in a brick-and-mortar venue, Ishikawa said.

Shanghai fans have a particularly sharp eye for design and quality, so Tokyo-based Production I.G is confident that if its products are a hit in Shanghai, it will also be successful in other parts of China and even the world, he added.

Anime fans are particularly interested in merchandise based on original works, said Cai Gongming, president of Road Pictures and GuGuGuGu, which is the Chinese business partner of the two Japanese companies.

For anime firms to develop they need to work closely with animation artists and popular intellectual properties to develop unique and exclusive products, Cai said. Linking arms with top-tier studios like Production I.G and Tokyo-based SEGA is part of this strategy.

The recent success of the Chinese animated film “Nezha 2” is proof of the vast potential of China’s anime sector, Cai said. Today’s main consumer decision-makers were born in the 1980s and 1990s. They are the first generation of people in China to grow up watching anime, and as such this group has a deep connection to the genre, he added.

In terms of merchandise, anime businesses need to think beyond movies to the comprehensive development of the IP, Cai said. For example, during the production of films, companies can launch dramas and theatrical versions, merchandise, exhibitions and even theme parks to keep fans engaged and open up new revenue streams.

Editor: Kim Taylor