Disney Expands Second and Third-tier Cities in China

Liu Yuan, director of retail and marketing at Consumer Products, Walt Disney (Shanghai) Co., Ltd., said that they will use various retail channels to save time and costs for Disney consumer products in China.

It is understood that Disney's current authorized product categories include clothing, shoes, socks, accessories, household items, toys, stationery, health and beauty products, food, and consumer electronic products, as well as publishing books and magazines. According to Disney's definition, these categories cover the vast majority of consumer products. "With the development of the market in the future, Disney's authorized business is likely to further develop into new product categories." Liu Yuan said.

Obviously, Disney’s commercial ambitions are not only reflected in their continuous construction of a global playground, but also in the continuous creation of Disney products. As a strong commercial enterprise, all consumer goods companies seem to have a hard time saying "no" to them. The reason is very simple. No one wants to reject high profits.

But creating product categories is by no means a simple matter. Basically, the Disney consumer products department will understand the needs of the market and consumers, and timely launch consumer products that meet the market demand according to the ever-changing consumer demands of consumers. Conversely, which authorized dealer negotiated and talked about became less important.

“For example, Disney authorized Beijing Huaqi Information Technology Co., Ltd. to produce Disney MP3 at the beginning of this year, which is in line with the needs of the younger generation of consumers. Similarly, Disney’s mobile phone launched the first Disney-branded mobile phone in December 2005 to 2006. In October, another mobile phone was launched, according to the needs of the market, from the appearance of the product to the built-in content have made innovations." Liu Yuan said.

How high is Disney's threshold

At present, Disney's consumer products division’s major products in China include the Mickey Series, Winnie the Pooh Series and the Little Princess Series. "In addition to first-tier cities such as Beijing, Shanghai, and Guangzhou, we will expand the development of second and third-tier cities. From now on, in the coming years, we will focus on cities such as Wuhan, Chengdu, Chongqing, Nanjing, Hangzhou, Harbin, Shenyang and Changchun. Development of business.” Liu Yuan disclosed Disney’s development plan in the Chinese market.

Because of its high commercial popularity, the licensee (Disney claims that its franchisers are licensors) has benefited a lot from it. Hangzhou Biinmeite Baby Products Co., Ltd. Xu Xianghu started working with Disney at the beginning of this year, mainly producing Disney series baby products. Xu Xianghu said that the reason for choosing Disney is mainly to look at the influence of its brand in the eyes of children and their parents. Although the amount of equity paid to Disney will increase each year, it still feels worth considering long-term development.

Liu Yuan said that if a company believes that Disney's cartoon image will help the sales, profits, and brand image of its products, it can actively contact the authorized managers of the Disney Consumer Goods Department and strive to become a Disney authorized dealer. .

In general, Disney's criteria for choosing a partner is to see if there is something in common between the other party and Disney's brand spirit. At the same time, the licensees need to work hard to carry out various marketing activities to promote their own authorized products, and to accept Disney's audit and market support in the process of developing products and display tools. Of course, partners need to submit sales data to Disney on a regular basis as a basis for calculating their equity.

Although the Disney side did not want to disclose the specific franchise fee, it was learned from an authorized dealer that the higher the profit, the higher the fee collection; the different series, the costs are also different, such as Mickey Mouse's authorization fee is relatively high, and others are relatively low.