China Financial Daily

Interpretation of the Disney Shanghai suction Gold Journey: tourists spend about 600 yuan per capita (1)
Disney Shanghai to gamble?

Disney came.

Is expected to be completed in 2014, Disney theme park in Shanghai, becoming the latest recent Shanghai’s economic center of the excitement and controversy. The estimated total investment of more than 500 billion Big Mac in Shanghai has the largest government investment projects.

In an excitement among the voices there is another, while Hong Kong Disneyland four years of operating difficulties are still entangled with the SAR Government, on the other hand in the recently announced news, Disney co-operation with Shanghai and Hong Kong and its “cooperation model is almost the same,” it was on the profitability of the Shanghai municipal government is quite concerned about the future.

Meanwhile, Disney has also come to China to face a reality 20 years later, when the children had grown up watching Disney, as well as how many people will for the first childhood memories will pay for?

Disney’s Shanghai shock

Although as a “reference” three Disney theme parks overseas, in addition to Tokyo Disneyland, the other two once Kadoba cold, but Mickey Mouse is still without prejudice to the chain in China, sparked enthusiasm. Mickey Mouse in the short term is bound to become an effective lever of Shanghai’s economic

Reporter / Li Yi-lan

Disney came. “Boots” finally fall.

At 8:30 on November 4, Shanghai Municipal People’s Government Information Office, authorized to announce: Shanghai Disneyland project application report has been approved by the relevant state departments.

The children’s eyes filled with colors of the Disney fairy-tale world, but also adults in the eyes, such as “Open Sesame” myth of the creation of wealth as a “cash cow” do? Although not yet finally settled, the two sides are still on cooperation in the specific content and detail in-depth consultations, but can be profitable around the topic of Disney, has long been controversial everywhere.

As a “reference” overseas three Disney theme park, in addition to Tokyo Disneyland, the other two once Kadoba cold. Paris, France, opened in 1992, Disney, opened a year, losses reached 900 million U.S. dollars, “Disney’s headquarters executives not even dare to view the daily fax from Paris, because the loss of the above so that the heart can not be to bear. “U.S. Pulitzer Prize winner James Stewart in” Disney War “described in his book.

Hong Kong Disneyland can not be optimistic about the situation. Accordance with Hong Kong Financial Services and the Treasury Bureau report entitled “Hong Kong Disneyland’s finance and financial benefits” of the document, completed in 2005, Hong Kong Disneyland has not yet turned a profit.

“People overlook the crucial point, Disney was a ‘Big Mac’ style of industrial chain, theme parks, but its one of the means to make money.” Shanghai Television University Institute of Technology professor Dr. Zhao Kangwei told the “China News Weekly.” Disney Shanghai from 2002 to restart negotiations on the project began, Zhao Kangwei had participated in including a number of international brands, including Disney theme park to introduce the negotiations, he confessed that had been concerned about the theme park industry for decades.

Disney’s business model from a global point of view, Disney’s “suck money” mainly depend on four major parts: the film studios, theme parks and resorts, the Disney doll commodities (including Disney’s licensing business, Direct Marketing, books publishing, gaming, retail, etc.), media network. These four blocks are interlinked and Walt Disney to build a powerful “smoking money” empire.

25 billion, eventually passed

A report on Shanghai Disneyland project feasibility report is expected to be completed in Shanghai in 2014 the Disney theme park, the first phase of investment would be as high as 24.48 billion yuan.

Nearly 250 billion yuan invested huge amount of cost recovery and profitability, becoming the focus of public attention.

“This could refer to the theme park as a joint venture company the cost of inputs, the investment is not just for theme park park, the park also includes a variety of capital costs, land costs, environmental costs, part of the regional transport infrastructure costs, relocation costs. “Zhao Kangwei said,” China News Weekly. ”

In Hong Kong Disneyland project, Disney will be posted to the senior management team, providing the right to use the brand, while taking 7% of the brand fee; the Chinese side will provide all middle-level managers and ordinary employees, a joint venture between the United States to pay to the theme park project royalties, production fees. If the expected mode of cooperation with the Hong Kong Disneyland project the same, it means that the Disney theme park has not “suck money” before, 250 billion has been invested as part of the way through this “return” to the Walt Disney World.

According to earlier media reports, the Disney project, equity, China accounted for 57% stake in Disney’s 43% stake. Shanghai state-owned large enterprises designated by the Government on behalf of China, establishing a joint venture with the Walt Disney Company, 100 invested by the joint venture billion yuan, of which China invested 5.7 billion, Disney invested 4.3 billion. The remaining 150 billion in bonds, which the government owns 12.0 billion debt, banks and other commercial institutions have 3.0 billion debt.

State-owned enterprises Lujiazui Group, a joint venture is considered a major shareholder in the Chinese representatives, although not yet officially confirmed, but one of the key persons involved in the negotiations to “China News Weekly” said, after negotiations conducted by the Disney project, Lujiazui Group had As a representative of the Chinese investor to participate.

“To build a theme park, it is necessary first to lease or lease obtain land, while the land is state-owned assets.” Zhao Kangwei analysis of resistance, “said the Chinese joint venture itself is state-owned enterprises, in fact eventually passed through the land the lease or lease a portion of their investment section is returned to Chinese companies. ”

“Sino-US 25 billion investment in both the input, in fact or in a large part of the land, copyright, project design, production and interest cost of funds, etc., etc. return to each other, the cost of construction of the park is not very high proportion.” Zhao Kangwei said.

The Disney’s Shanghai “suck money” journey has just begun.

Disney Snowball

“Disney settled in Shanghai is another milestone in the history.” November 3, The Walt Disney Company’s official website in English was published in The Walt Disney Company CEO Robert Iger’s statement to the Shanghai market, this piece of “big cake “demonstrated great enthusiasm and expectations is evident.

“Large-scale theme park’s success must be operating in the theme park itself, the surrounding facilities operations, brand and intellectual property rights in the operation of these three levels make a difference, have created.” Zhao Kangwei explained that the theme park operating income Park, the most basic source of income, mainly from the tickets, services, sales, sponsorship income, etc. pose a few.

Disney predicts that operating income in the park, the ticket sales accounted for 50%, food and beverage accounted for 24.5%, 24.5% of goods, other income of 1%. Operating income in the park ticket sales in the position shown.

“The Shanghai Disneyland ticket prices initially priced at 320 yuan,” Shanghai University of Finance and Professor Ho Kin-man told the “China News Weekly.” He Jian-Min is the first tourism economic scholars, in February of this year, he was the only one travel expert, participated in the Shanghai Disneyland project evaluation, “and signed a confidentiality agreement.” According to UBS (UBS) in the world of regional economic data published by investigative bodies, as of March 2007, according to purchasing power parity estimates, per capita income in Shanghai has reached 27,734 U.S. dollars, ranking first in the Mainland, “so the pricing is reasonable and scientific . “Jian-Min said. Disneyland project in Shanghai in 2002 to restart the negotiations, the United States by the time market research that the proper positioning of tickets in the 220.

Ho Chien-min estimates, ticket sales combined with shopping and spending, drinks, transportation costs, admission time, visitor spending per capita will be 600 yuan.

And how to get this snowball snowballing it?

“The market is based on a key.” Ho Chien-min told the “China News Weekly,” “Disney’s operational profitability in the park you want, need to ensure that annual passenger traffic of about 1,000 million people.”

“Shanghai has a unique advantage in that a larger population base.” Jian-Min He further explained that “Shanghai has 20 million people, the entire Yangtze River Delta region has 75 million people, is China’s most economically prosperous areas; Shanghai currently has 102 million domestic tourist trips inbound tourists around 7 million passengers, the number is still rapidly increasing. ”

From the National Bureau of Statistics disclosed in the fifth national census bulletin, 0 ~ 14-year-old children in China, about 280 million, and they, it was Disney’s most important target population groups.

With the market-based, how to ensure that 10 million passengers a year for the Disney theme park visitors “pay”?

The Walt Disney Company Disney Channel is another tourist attraction “trump card.” They need a story every day to the Chinese children the opportunity for children to re-love Mickey Mouse. But, because of China’s cultural industry policies restricting, the Disney Channel landed a Disney project, twists and turns in the negotiations for decades been a “stumbling block” is one. According to earlier media reports, the Disneyland project in Shanghai, it may include a major media agreement. Widely circulated version, this agreement allows Disney in the form of joint ventures and allowed him to film, television and Web content.

The theme park, Disney’s operating income is just “suck money” tip of the iceberg. Throughout the world operating conditions of the Disney theme parks Walt Disney Company income accounted for only 20% of total revenue, follow-up film and television revenues accounted for 30%.

The remaining half of the income? “Secret all the derivative products, secondary consumption.” Zhao Kangwei said, “China News Weekly,” Disney and the remaining 50% of their income, all from the brand.

Mickey Mouse Secondary Consumption

“We must make Shanghai Disneyland around the resort, including Disney, shopping malls into a second new ground, becoming the city’s new landmark.” Settled down in Shanghai as the Disney theme park, “thunder” gradual, Disto Nigeria’s vice president, has a smell of the wealth of Disney’s yet another new point.

As early as 10 years ago, Disney’s consumer products have already aggressively enter the Mainland market, the business of cartoon image of the consumer products markets every year with 18% ~ 20% rate. Data show that Disney authorized merchandise turnover in China each year has reached more than 400 million U.S. dollars. At present, the mandate of the various areas of business more than 80 products over the toys, bedding, stationery and other fields.

November 12, Walt Disney Company announced a 2009 fourth-quarter earnings, the data show that the current fiscal quarter, the company achieved net profit of 895 million U.S. dollars, compared with 760 million U.S. dollars over the same period last year a substantial increase, but the theme park context, it was an 17% profit decline, with only 344 million U.S. dollars.

For Disney, “suck money” into the “strong arm”, and it is a huge income derivative products.

Disney’s California Adventure theme park next to a world-renowned shopping street, called Disney’s Town (Downtown Disney), where shops sell a different theme albums, souvenirs, clothing, dolls and other commodities, they are all belong to The Walt Disney Company, are no bargain price tag, even if those stores are using plastic bags, uniform blue background of the Mickey Mouse logo. Walt Disney World (World of Disney) where sales of shape beautiful, gorgeous dressed Mickey Mouse and Donald Duck exaggerated ornaments, mostly in fifteen or twenty dollars a. Disney has its own distribution centers, huge storage of goods, steady flow of these shops, “blood transfusion.”

Take the Disney town shopping center represented only part of the Disney resort area. “The theme park is the core part of the resort, but the surrounding supporting shopping street, hotels, clubs, water parks, shopping streets and all kinds of sports venues and so on, equally indispensable.” Zhao Kangwei said, “the Disney Theme Park Products development strategy is to build a theme park, leisure and tourism resort complete and mutually supporting each other source. ”

According to Zhao Kangwei for many years of research, in the United States Florida Disney World’s four theme parks, a total of 18 thematic hotels, clubs, spa and villas, some more than 23,000 beds, two 18-hole golf course, a 450 hectares of natural lakes, nine tennis courts and some recreational facilities, camping ground.

“The addition to the theme park outside of Disney’s consumer income is another important source of income.” Zhao Kangwei said. 2008 Disney’s financial statements also showed that the annual theme of the Disney Resort hotel with a total revenue of 115 billion U.S. dollars, profits of 19 billion U.S. dollars.

As a “secondary consumption”, Disney’s tactics as well.

In Disneyland, you usually only drink a cola drink is Coca-Cola. This is the Walt Disney Company to the Coca-Cola’s “privilege”, Coca-Cola in the sharing of the Disney theme park sales profits, we must also pay a lot of money to the Walt Disney Company franchise fees.

As we all know, Disney is the world’s largest consumer brands licensees, Disney Consumer Products (referred to as DCP) exclusively through patents, licensing and other forms, is responsible for Disney’s consumer brand development, marketing and licensing business. This means that only the “Winnie the Pooh” and so the image of the sale, the Walt Disney Company could sit “to count the money,” the.

Manufacturers are also sponsored by Walt Disney “sucked gold” of “weapons.” “Toyota, LG and other major international companies have been sponsored by the Disney theme park in the project, they have access to the project naming rights, it would also pay a fee to the Walt Disney Company.” Zhao Kangwei said, “China News Weekly.”

In March 2009, Disney Consumer Products is in China, announced the launch of Disney’s first authorized by the Chinese B2C online shopping platform for the sale of more than 5000 kinds of Disney licensed products in preparation for eating online shopping piece “big cake.” Disney also claimed that the future of online sales will account for the entire Walt Disney Consumer Products sales 8% ~ 10%.

Related posts:

1. Interpretation of the Disney Shanghai suction Gold Journey: tourists spend about 600 yuan per capita (3)
   Interpretation of the Disney Shanghai suction Gold Journey: tourists spend about 600 yuan per capita...
2. Interpretation of the Disney Shanghai suction Golden Journey: tourists spend about 600 yuan per capita (2)
   Interpretation of the Disney Shanghai suction Golden Journey: tourists spend about 600 yuan per capita...
3. Obama’s visit to China, Walt Disney and World Expo present gifts for his arrival
   Obama’s visit to China, Walt Disney and World Expo present gifts for his arrival News...