The China Daily:
Ben Cavender, an analyst at China Market Research Group, said: "Disney is very concerned about branding and about developing its image in China."
He said operating a flagship store selling merchandise is both a way to market its theme park but also of retaking control of its merchandise and control quality in the country.
Cavender said the company had been working on developing a retail presence in China for some time but ultimately it has to deal with what has become a persistent counterfeiting problem, and the perception that its product prices are high.
Only by controlling its retail experience and ensuring product quality can the company entice consumers to spend, he said.
Another issue facing Disney in China, he said, is its prices in the mainland compared to Japan.
"The company thinks the market can bear these prices, but we are still to see how sales go over a longer period of time to see if this proves the case," he said.More in the China Daily.
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