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Mickey meets machine

Updated: 2007-11-26 07:25
By LIU JIE (China Daily)

Mickey meets machine

Transforming Mickey Mouse and Winnie the Pooh into home appliances might indeed seem like a cartoon skit, but that is exactly what entertainment giant Walt Disney and China's Yadu Science and Technology Co Ltd have done.

"Our hi-tech products with classic cartoon figures should attract more consumers at home and abroad," says He Lumin, founder and chief designer of Yadu.

He says that it is mutually beneficial due to Disney's huge expectations from the Chinese market and Yadu's next step in overseas expansion.

China's earliest air humidifier and purifier maker and the world's second-largest media and entertainment company are collaborating in product development, sales, brand authorization and marketing.

"The key value of the agreement is co-branding," says Yu Renbo, a researcher with the Development Research Center under the State Council.

The approach means Disney authorizes Yadu to use its well-known cartoon images for its home electric appliances, while Yadu makes Mickey Mouse and Winnie the Pooh-shaped designs for its flagship products, spreading awareness of these characters.

Co-branding

"It helps develop brands through joint marketing, which is conducive to both because instead of "Brand A" having five ads and "Brand B" having five ads now they both can have 10," explains Yu.

Other such campaigns have included Intel's cooperation with computer makers to carry the now-familiar "Intel Inside" sticker, the collaboration between China Mobile's M-zone service and the National Basketball Association and Coca-Cola joining with network game World of Warcraft.

Disney's co-branding partners are all noted multinationals, such as credit card giant Visa, UK-based chain retailer Tesco, and hamburger king McDonald's.

Beijing-based Yadu is the world's second-largest maker of indoor air quality (IAQ) products - a promising sector due to growing health consciousness globally - and has over 90 percent of the Chinese market. It also holds patents for 70 percent of core technologies needed to make IAQ products.

Stanley Cheung, president of Walt Disney Asia-Pacific, says the cooperation will bring Disney's household business "bigger success" with the help of Yadu's strength in domestic marketing and technology.

Market prospect

Both Yadu and Disney say that co-branding will be their key task in China over the next two years, while Yadu promises it will invest one-third of its marketing budget in the effort.

After the first five series of cartoon humidifiers hit the market, the two companies will further cooperate by adding more Disney cartoon elements into small home appliances.

Different from other authorized use of the iconic images, the US media and entertainment giant will also provide support to Yadu for the retail distribution network and product design and development.

Yadu was authorized in 2006 as the exclusive air humidifier and purifier supplier for Beijing 2008 Olympic Games, the first step in its internationalization.

"Partnership with Walt Disney is the next step. Yadu can expect to attract the interest of Disney fans around the world," says Lin Xianpeng, a professor at Beijing Sports University, adding that it is also part of a localization strategy by Disney to expand in China.

Insiders say Yadu's status as an Olympic exclusive supplier was a crucial element for Disney to join the strategic cooperation.

The local private company will provide over 200,000 air purifiers and humidifiers to athletes, journalists and guests during the Beijing Games to help foster a greener Olympics, which means its brand will be seen from Olympic venues to media centers, from conference facilities to the athletes' village.

"The potential of the Yadu brand is promising and its brand value should be greatly enhanced after the world's biggest sports event," says Lin.

Yadu and Disney jointly began a nationwide campaign last month with ads and in-store sales promotions for Disney cartoon humidifiers. Prices are almost the same as standard models.

Yadu's He says the market response was encouraging and met with his expectations.

(China Daily 11/26/2007 page1)

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