Disney and Gucci Combine

To take stronger advantage of China’s growing luxury market

When you look at the China of today compared to that of 10 years ago, in many ways it’s completely unrecognisable.

I’ve been working out of Shanghai for the past 5 years, and have watched the city change and develop around me. There’s not been one apartment I’ve lived in where I haven’t seen surrounding areas demolished and rebuilt with higher luxury malls and apartment buildings.

The growth rate of China’s appetite for luxury has been staggering over the past decade. According to a report by The McKinsy Group, China is responsible for more than half of the global growth in luxury spending over the past 5 years. That number is expected to grow to 65% by 2025.

China is getting richer by the day, and those in China that are reaping the benefits are developing an appetite to match. This country is not developing into a frugal one, rather one that desperately desires the creature comforts they were denied when the country was in poverty only 30 years ago.

Walk down any main street in Shanghai and you’ll be confronted with hundreds of designer brands. They’re fighting to get a piece of Chinese wealth, and they’ll do anything to grab market share.

Enter Disney

In spite of promises made to Hong Kong not to introduce competition too quickly, Disney couldn’t help building Shanghai Disneyland as soon as the inked dried on permission papers from Beijing.

The company invested 5.5 billion dollars to build the park, making it Disney’s most expensive international investment.

The park was a way of profiting from China’s rapidly expanding middle class, but was also built for a far more valuable purpose. Building the park increased brand awareness in a country that didn’t grow up with Mickey Mouse cartoons. This was a very important step to make before introducing any high priced goods for the real target customers — China’s elite.

Year of the Mouse

Shanghai Disneyland opened its doors in 2016, leaving 4 years for the brand to permeate Chinese pop culture.

They struck deals with lesser brands including Uniqlo, T-Mall, and Miniso for cheap branded merchandise to further spread the word.

But now here we are, 2020 has arrived. Why this year in particular? Because it’s the year of the mouse in the Chinese zodiac, the perfect time to push Mickey Mouse as hard as possible into the Chinese consciousness.

Gucci + Disney

Launching in time for Chinese New Year during the year of the mouse, Disney and Gucci have combined to release a line of Mickey Mouse designer products.

Here is a photo from Gucci’s marketing department. It’s two models enjoying a positive experience at Shanghai Disneyland dressed in Gucci clothing and sporting one of the brand new Mickey Mouse Gucci handbags.

This bag sells for ¥20,000 (almost $3,000 USD).

Each product is unbelievably expensive, and only a few years ago would have been an enormous misfire.

Who wants to pay $3,000 for a Mickey Mouse handbag?

Well, when you’ve found a country that spends more money on luxury than anyone else, you introduce an Italian luxury powerhouse. You then spend 4 years imprinting Mickey Mouse onto the hearts of the people before slapping his face onto the bags and shoes being made by the Italian powerhouse.

You then upsell those bags and shoes like a goddamn capitalist champion.

This is to make money in 2020. Welcome to the new decade.