Business Intelligence on Retailing, Franchising, and Consumerism in China

Disney To Open More Chain Stores In China

Disney is working with Limen Group to open Disney chain stores through the sale of concession franchises.

This is Disney's first try in running regional stores in China, which is aimed at building sales channels and realizing expansion at lower costs.

Qi Xupeng, general manager of Guangzhou Hongmeng Enterprise Management Company, has told local media that

Limen will open Mickey's Space and Hongmeng will take charge of the development and management of the Mickey's Space stores in China.

Mainly targeting young consumers, Mickey's Space offers nearly 2000 kinds of Disney products including decorations, cosmetics, watches, and toys. Qi Xupeng says that Disney authorized Limen to manufacture home furnishings with the image of Disney cartoons and to open franchised stores with the concept of Mickey's Space in 2005.

There are more than 40 home furnishing stores and flagship stores opened by Limen in China. Qi says that Mickey's Space plans to open more than 100 stores in 2007 all around China.

Zhang Zhizhong, vice administrative president of Disney China, says that Disney now has about 1700 retail sites in Mainland China and that during the next 5 years, the retail spots for Disney in China will increase to 5000 and will mainly lie in second-tier cities.

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