Page 29 - Sphere No.17 (Sep 2006)

NGHAI
SPHERE 27
The arrival of theWarner Bros.
Studio Store is just another
reminder of Shanghai’s status as
Mainland China’s coolest city.
HARRY POTTER, characters, names and related indicia are trademarks of and © Warner Bros.
Entertainment Inc. Harry Potter Publishing Rights © JKR. LOONEY TUNES and all related characters
and elements are trademarks of and © Warner Bros. Entertainment Inc. SUPERMAN, BATMAN and
all related characters and elements are trademarks of and © DC Comics. TOM AND JERRY and all
related characters and elements are trademarks of and © Hanna-Barbera.
was a privilege for PMW to work with Warner Bros. Consumer
Products (WBCP) in an effort to bring the Warner Bros. Stu-
dio Store business to Mainland China. “As our first major set-up
to showcase the world renowned Warner Bros. Entertainment
brands in the Mainland, the Shanghai flagship store sets the
foundation for future business expansion,” Ms Chan said.
Together they plan to open around 200 retail outlets in key loca-
tions throughout Mainland China, Hong Kong and Macau, with
PMW using its knowledge and China networks to help WBCP
gain a strong foothold in the booming Mainland economy.
Shanghai shoppers have welcomed the new store with
open arms, attracting everyone from teenage girls to
office ladies and parents looking for that perfect
present. There is little doubt that Harry Potter
is the star of the show. J K Rowling’s young
wizard – Ha-Li Bo-te as he is known in Chi-
nese – has been hugely popular in China for
years. Fans of all ages will now have the chance
to take home some of the magic they’ve experi-
enced through the films. “Harry Potter is big in
Shanghai and gets bigger every time a new book or
movie is released,” said Ms Chan.
As the Chinese government has proclaimed that it will con-
tinue its one-child policy, the rule has given rise to the poten-
tial growth for products and services catered to children.
Parents who have the financial means are willing to pamper
their children with better toys and electronic gadgets. With
some 300 million children below the age of 14, only USD3.6
per capita a year is spent on toys in China. Meanwhile, toy
spending in the rest of the world averages USD34
per child per year. By 2010, the country’s
toy market is expected to reach
USD12.5 billion.
The willingness of one-
child families to spend
lavishly on their kids has
had a significant impact
on the toy market, especially in Shanghai where many children
of the new urban wealthy now have their own rooms. Some
parents even cut down on their own spending in order to sat-
isfy their children’s needs.
The arrival of the Warner Bros. Studio Store is yet another
reminder of Shanghai’s status as China’s coolest city. The me-
tropolis leads the way in everything from finance and fash-
ion to design and dining. And, of course, Shanghai
is the number one place for retail therapy. The
city’s authorities are famously business friendly
and have gone out of their way to create a fa-
vourable environment to attract leading names
from overseas.
Shanghai also has great influence over what
happens in the rest of Mainland China. Distribu-
tors flock to shoppingmeccas likeHuaihai Road and
Nanjing Road to catch an early sight of the latest styles
and designs that will become popular in their own cities.
Hooking up with a big brand name certainly seems to pay
dividends. “Most businesses in China are brand driven and the
retail business is no exception,” said Ms Chan. “In deciding
which product to purchase, Chinese consumers today will con-
sider what the brand is, who the buyers of the product are and
whether they wish to join their ranks. Marketers spend tremen-
dous amounts on building brand awareness and promotion to
attract customers.”
This is HHR’s first retail business in Mainland China and will
form the template for developing further brand licensing, retail
sub-licensing, and product distribution businesses
across the Mainland. HHR is also involved in Blue-
tooth technology and property development
on the Mainland and also supplies some of the
world’s leading brand names in the toy industry.