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Disney targets Vietnam in drive for growth
Disney has also signed a licensing agreement with Eastern Media Holdings to sell toys, apparel and other consumer products in Vietnam, Cambodia and Laos.
The investments, though small in financial terms, reflect the company's intention to focus on emerging markets. Robert Iger, chief executive, identified the international business, which contributed 22 per cent of Disney revenues in 2005, as a priority when he took charge seven months ago.
The investments also offer another sign of the deepening commercial ties between the US and Vietnam three decades after the Vietnam War. This was underscored a week ago by the rock star reception the country granted Bill Gates, the Microsoft chairman, when he spoke at a university in Hanoi.
The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused.US media executives have highlighted plans for foreign expansion as they seek to convince investors that they can generate new growth and spur share prices that have been stagnant in recent years.
Much of the attention has focused on India and China, although the latter has increasingly become a source of frustration because of rampant piracy and newly tightened regulations that restrict foreign participation in the media sector.
Andy Bird, president of Disney Consumer Products, said the company was "encouraged" by its growth in China but also stressed the importance of a host of smaller economies in Asia, Latin America and Eastern Europe. "If you're going to become a truly global company, it's important that you focus on countries like Vietnam," Mr Bird said.
He also suggested that Disney would take a long-term approach in Vietnam, seeking to build relationships with retailers and deepen awareness of its characters so that it could capitalise as the country's economy and technology infrastructure develop.
In 2005, Disney generated $1.4bn in revenues in Asia compared with $24.8bn in the US and Canada, and $5.2bn in Europe.
Copyright The Financial Times Ltd. All rights reserved.
Disney has also signed a licensing agreement with Eastern Media Holdings to sell toys, apparel and other consumer products in Vietnam, Cambodia and Laos.
The investments, though small in financial terms, reflect the company's intention to focus on emerging markets. Robert Iger, chief executive, identified the international business, which contributed 22 per cent of Disney revenues in 2005, as a priority when he took charge seven months ago.
The investments also offer another sign of the deepening commercial ties between the US and Vietnam three decades after the Vietnam War. This was underscored a week ago by the rock star reception the country granted Bill Gates, the Microsoft chairman, when he spoke at a university in Hanoi.
The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused.US media executives have highlighted plans for foreign expansion as they seek to convince investors that they can generate new growth and spur share prices that have been stagnant in recent years.
Much of the attention has focused on India and China, although the latter has increasingly become a source of frustration because of rampant piracy and newly tightened regulations that restrict foreign participation in the media sector.
Andy Bird, president of Disney Consumer Products, said the company was "encouraged" by its growth in China but also stressed the importance of a host of smaller economies in Asia, Latin America and Eastern Europe. "If you're going to become a truly global company, it's important that you focus on countries like Vietnam," Mr Bird said.
He also suggested that Disney would take a long-term approach in Vietnam, seeking to build relationships with retailers and deepen awareness of its characters so that it could capitalise as the country's economy and technology infrastructure develop.
In 2005, Disney generated $1.4bn in revenues in Asia compared with $24.8bn in the US and Canada, and $5.2bn in Europe.
Copyright The Financial Times Ltd. All rights reserved.
