Competitive
London

China has always been a key market for Disney, but as the recession begins to bite across Asia, what challenges now lie ahead for the company? Samantha Loveday finds out from Guenther Hake, head of DCP Greater China…
Having previously held a sales role working with a variety of key retail accounts at Disney Consumer Products Europe, Guenther Hake is the first to admit that his move to China has been a big change. But it seems to be one he is relishing and he is planning on turning his experience in Europe to his advantage.
“Some of the hurdles we faced in Europe included the complexity and diversity of each local market that makes up Europe, as well as being locally relevant in each of the different countries we operated in,” Hake explains to Licensing.biz. “The Greater China market is all of these things and some more. It is a very diversified market which means being locally relevant resonates even more and takes on even more importance.”
Hake’s team also has the talent to build up the firm’s presence further in China. It includes execs who have previously worked for such companies as Nike, Unilever, Pepsi, Mattel and Carrefour, so there’s no shortage of experience across the board.
The first focus for Hake in the territory is on Disney Princess. “We are aiming to make Disney Princess the number one franchise in China for little girls,” he says confidently. “Having a launch plan for Disney Princess to tie everything together and focusing all of our retail and marketing push behind the property is where I see our strength and, ultimately, our opportunity. We are pushing ourselves to extend the boundaries of creativity and innovation. We have to find out what our customers really want.
“Disney Princess is an immense opportunity for us because of the brand heritage and the rich back catalogue of the Princess stories. The fairytales and narratives are fresh and new, but the underlying themes of friendship, kindness and charity are universal. That can be said right across all of the properties in the Disney portfolio. Our storytelling quality, innovative and compelling content is what drives our brand value. Parents trust us, kids love us, so it is about developing these programs further.”
DCP has launched its biggest integrated franchise campaign ever in China for Disney Princess, supported by TV, DVD, publishing, online, music, live entertainment and retail concepts. There will be more than 200 Disney Princess products available across all categories, while Hake also reveals that this year will see the launch of a Disney Princess Virtual World.
“There is immense heritage with the property,” Hake continues. “Snow White and the Seven Dwarfs was the first animated feature to be shown in Shanghai in 1937. Our home entertainment group has a vault of wonderful Princess Classics that will be released as part of a platinum release schedule to allow little girls all over China to experience the stories on the small screen.”
Besides Disney Princess, however, Hake and his team will also be working on Mickey Mouse, Winnie the Pooh and Cars, plus an invigorated push for Toy Story to tie in with the cinema release of the third instalment.
“We all read anecdotally that China is this boom market, a market in its infancy where there is immense opportunity. All of this is true, however journey into some of the tier one cities such as Shanghai and Beijing, and you have a shining, bustling example of a very modern metropolis with consumer habits to match. It’s not different to the London’s or New York’s of this world.
“The major difference I can see between Greater China and the European markets, based on my experience, is the way retail is structured and the way content is distributed. But anyone who wants to do well and be successful in China has to understand the areas of commonality and the areas of local difference. The right balance between the two can be a recipe for success.”
And, as the territory grows and more firms become involved, Hake believes there’s the possibility of a dedicated event in China. “I think it’s only a matter of time,” he says. “Chinese companies here, despite the recent economic turmoil, are looking at licensing in a serious way. While the industry is still relatively small, the local companies are keen to partner with us because of the mutual knowledge sharing that can be accomplished. Of course, there are issues in this industry that exist to a far greater extent than anywhere else in the world, such as pirated goods, but for us at DCP, we are always on the look out to partner with the local companies that have a shared vision for innovation and creativity.”