The world’s largest media conglomerate Walt Disney will establish a foothold in China this Fall, planning to open 25 to 40 stores within three years.

The foray is part of the company’s effort to seeks new revenue sources outside the US and Europe where its brands are now reaching maturation.

Disney will establish its first China store in Shanghai where it has already inked a lease and is considering other top tier cities where large population and high influx of tourists are concentrated.

“China is very important to overall Disney company plans, obviously with the launch of the Shanghai Disneyland Park. So, it is probably the newest country that is getting the most focus,” said Jim Fielding, president of Disney Stores Worldwide.

“Because the licensing division has had a presence in China already, there is affinity for the brand and affinity for characters. The market is ready.”

According to Fielding, the company will adjust the range in its China stores to suit local consumers. For instance, only few Princess dolls will be displayed, with more Winnie the Pooh and Mickey Mouse products featured instead. Not all Chinese are familiar with all the characters under the Disney brand.

While excited to conquer China, Disney is also facing challenges such as cultural differences and counterfeiting. Retailers which ventured in China but shut down after time don’t help Disney’s ambitions when it comes to negotiations with landlords.

Among those were toy maker Mattel which closed its Barbie flagship store in Shanghai last year and US electronic chain Best Buy which shut down all its namesake stores in China.

Disney now has over 200 stores in North America, more than 100 in Europe and more than 40 in Japan.

GB