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A study on current business performance of Chinese animation industry - page 12 / 21





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product, it aims to make those Chinese companies produce more excellent original animation and cartoon products;

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    By building up a collaborative network for Chinese TV channels specialized for children, it aims to realise

large-scale sales in Chinese market for original animation and cartoon products manufactured in its base;

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    By introducing overseas sales agencies, it aims to explore greater overseas markets.

The registered companies benefit from special polices on technologies, capital, finance, and tax. For example, the reduced or free rental, interest-free loan, and offering of Shenzhen permanent residence. Up to now, 51 leading companies in the animation and cartoon industry have entered the base, which include 44 Chinese

companies and 7 overseas companies. Among them, there are planning companies for original animation,

cartoon and games, manufacture companies for original animation and cartoons, R & D companies for applied

technologies, programme agency, overseas financing companies, publication and distribution companies, and

distribution agencies, which form an integrated industry chain. All the companies in have their original products. In 2006 the animation production capability of the base is about 14,000 minutes. There are 26 original movie and TV animations in producing in 2007. It also has established the cartoon, animation & games Industry training centre, and has close cooperation relationship with universities.

4.2 Outsourcing

Outsourcing is a typicl business model in anmiation industy due to the globalisation of industry and price competition. From 1980s, Chinese animation began to produce for overseas developers. In the past 20 years 90% of Chinese animation are outsourcing studios. Though orignianl design capability grows, in 2006 there are

still 70% firms in China which do purely overseas project or jointed production (2008 animation report). In game game production, art and sound are the most common areas for outsourcing, following by animation, and testing. Case Two shows a good practice of such firms.

Case Two: an Chinese outsourcing studio

Established in 1999, this company is a Nanjing-based outsourcing company delivering high quality 3D art and animation to the global interactive industry. It is specialised in 3D art and animation production. With 240 full-time employees and is growing rapidly, they are able to produce:

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    In-game 3D models for character, objects and environments etc.

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    Textre creation

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    Cinematic movie and special effects

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    Flash Game Development

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    iPhone Game Development

The company has very clear goal which is to product art and animiation for game developers. Because the competition for outsourced studio is fierce, it develop several practice to attract clients especially top game developers globally.


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