Earlier this month the Walt Disney Company was granted approval from the Chinese government to build a Disneyland theme park in Shanghai, the first ever in mainland China. The project is estimated to cost $3.5 billion and will open in 5 or 6 years, occupying about 1,000 acres of the city’s Pudong district. Rober A. Iger, Disney’s chief executive, said “China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very important milestone for the Walt Disney Company in mainland China.” Let’s take a look at what the Shanghai park means for brand Disneyland.

The Brand Story
“Always remember that this whole thing was started with a dream and a mouse.”

Disney created a world of magic and imagination which has influenced many generations of children. The first Disneyland Park was opened in Los Angeles, California in 1955. Today, Disney has opened five theme parks around the world, combining Disney cartoon characters with games and rides, bringing the brand to every corner of the world. Disneyland has been a household name that people associate with a theme park characterized by magic and wonder.

Shanghai Disneyland: What will it bring?
China, as one of the fastest-growing economies in the world, is a huge potential market for any foreign brand aiming to expand abroad. Shanghai, arguably the most international and diverse city in China, will allow Disneyland to utilize the largest tourism resources in Eastern China (sightseeing spots, tourism infrastructure, etc.). On the other hand, stricken by the world recession and other difficulties in the industry, Disneyland hasn’t been doing well in recent years. Seeking a more profitable market is a must, and it’s estimated that Shanghai Disneyland will attract 30 million visitors every year.

The Shanghai and Disneyland cooperation appears to be a winning combination for both parties. For Shanghai, Disneyland will stimulate tourism in local and surrounding areas, attracting millions of visitors of all ages, from small children to their parents and grandparents. Also, Disneyland will stimulate financial and economic development, activating the theme park industry as well as hotel, cultural, and manufacturing industries, and creating more job opportunities. For Disney, it is a big step forward in its business expansion and brand building in China, the largest market in the world. In addition to the theme park, Disney also plans to sell its branded products in China, including Disney DVDs, video games, and other products. In a few years’ time, it is probable that Mickey will be found in many Chinese homes.

Brand Localization: Mickey with Chinese Characteristics
Some analysts worry that building Disneyland is a cultural invasion into China. Disney, as one of the most iconic American brands of all time, brings with it strong American values and culture. Disneyland could potentially weaken the development of Chinese local culture and brands in the same industry.

To address this possibility, the spokesman of Disney made this official statement: “Shanghai will feature a Magic-Kingdom style, in keeping with its cousins in Asia, the U.S. and France. It will also have Chinese characteristics as a part of the localization process that is a part of the deal.” After all, Disneyland delivers core values which are accepted by people all over the world: happiness, friendliness and adventure. Ideally, Shanghai Disneyland would bring its cheerful spirit to Chinese visitors yet tailor its offering for local tastes.

In short, a carefully formulated brand strategy will be the key for Disneyland’s China dream to come true.