Author: Yue Yan
In 2018, the Chinese market will be able to sell 66 items per second, the Avengers Alliance 5,000 mobile phones will be sold out in seven seconds, and plush toys with annual sales of pine pine toys will be available from Shanghai to Beijing... This is the latest data disclosed by Kermid Rahman, vice president and general manager of Walt Disney's consumer goods in Greater China and South Korea at its 2019 launch meeting.
First Financial Reporter on-the-spot interviews learned that behind Disney's success in derivative consumer and film businesses, Disney has increased its localization and new retail channels in the Chinese market, and in the future, digitization is an important strategy for Disney's development in China.
From a mouse, Walt Disney built her own empire of Commerce. And all commercial value comes from content creation.
Lin Jiawen told First Financial Reporter that Disney Pictures has become the world's box office champion and the first Hollywood studio in mainland China with a box office of more than 5 billion yuan for two consecutive years, covering 180 million Chinese cinema audiences in the past year. This year, China has a total of 12 billion yuan.
At the conference, Disney unveiled its new film to be introduced in the next two years, and its four major brands, Disney, Pixar, Star Wars (Lucas) and Manway, also have clear content plans.
After making the content, Disney mainly relied on derivatives to make profits. The Disney Story and Virtual Characters series approach consumers through theme parks, experience and consumer products, covering toys, clothing, household goods, digital games and mobile applications, the world's largest children's publishing house, Disney Store and ShopDisney e-commerce platform.
"Disney's consumer licensing business has grown at double digits over the past five years, 85% of which are local partners. China's local team focuses on building localized products through licensing, e-commerce and two Disney stores. Lin Jiawen said.
First Financial Reporter learned that Disney currently has more than 600 authorized partners in China. Disney provides IP image and requirements. Local authorized parties incorporate product characteristics and creativity to produce derivatives. Disney has creative teams for every regional market in China to support product development. Some products with Chinese elements will also be sold to overseas markets.
Lin Jiawen said that Disney's China market business will focus more on the above new consumer characteristics in the future.
"Disney's consumer goods business in China has maintained double-digit growth for the fifth consecutive year, with 66 Disney-licensed items sold per second in the past year." Lin Jiawen revealed.
On the scene of the conference, the first financial reporter saw Disney China for the first time attempt to display consumer goods on interactive large screens, rather than physical displays. All goods scroll on the screen, clicking on the screen can appear commodity pricing, introduction, manuscripts and even 3D effects. Ideally, two-dimensional codes could be added to the scene to allow direct code-scanning shopping in front of the screen, an attempt by Disney in the new retail sector, the site staff said. In the electronics sector, Disney has shifted from a wholesale model to a B2B model, quadrupling the sales figures of licensees in the past year.
Lin Jiawen told First Financial Reporter: "The rapid rise of digital technology and artificial intelligence in the Chinese market has changed the lifestyle and consumption habits of Chinese consumers, and has also provided us with opportunities. In the future, Disney will strengthen the exploration of new retail business mode.
"Disney will host the four major brand stories of Disney, Manwei, Pixar and Star Wars and continue to upgrade localization and digitization," said Jiang Yuke, managing director of Walt Disney North Asia.
"Disney's acquisitions and strategies over the years have been skewed toward technology and digitization, such as its intention to buy Netflix. Chinese consumers are even more dependent on electronics, so it makes sense for Disney to increase its digital spending. At present, Disney is also paying attention to the media again in marketing. This is the common trend of the future culture and tourism industry. " Zhao Huanyan analysis.
Disney is a component of the 30 Dow Jones Industrial Average, with revenue exceeding $55.1 billion in fiscal year 2017.
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