Walt Disney, SM to expand partnership

MANILA, Philippines — Family entertainment firm Walt Disney Co. and retail giant SM Group expect to see further growth in business and in sales as both intend to expand an existing partnership which brings Disney-themed offerings closer to the Filipino market through SM’s stores and cinemas.

Walt Disney Co. Philippines country manager Veronica Cabalinan, in an interview with The STAR, said the company is hopeful it could still surpass the growth seen since the partnership with SM was forged in 2015.

Following the partnership, there has been double-digit growth year-on-year in terms of sales for Disney’s character business in SM stores, with 5,000 products sold every hour across 70 malls.

“We hope we could exceed that,” Cabalinan said, adding the company intends to pursue a long-term partnership with SM.

Disney accounts for approximately half of overall sales of SM character brands.

More than one third of the screen share for Disney films in the Philippines is also accounted for by SM.

For her part, Myra Moñozca, vice president for licensing and partnerships at SM Lifestyle and Entertainment Inc., said the group also sees further growth in the business and in sales as both firms continue their collaboration.

“I am pretty sure it’s gonna grow further because of the movie slate, because of the new properties that are going to be featured year-on-year,” she said.

Given the benefits to the business seen from the collaboration, she said there is room to expand the partnership with Disney to go beyond selling merchandise, movie screening, and pushing campaigns themed around Disney characters in the malls.

“We have other facilities that have been untapped yet. We haven’t done anything on bowling, ice skating or at Arena. We’ve done Disney on Ice on Arena, but there is so much more we can do,” she said.

She said the wide range of brands under its partner such as Disney, Marvel and Star Wars, also provide opportunities to come up with new offerings.

“The good thing with our partnership with Disney is the range of properties that they have to offer. Unlike in the past when people would say Disney, it’s a kid’s brand. It’s no longer the case. So, for us as a partner, we leverage on that because now they have more… The range of merchandise that we offer at retail as well, is expanding. We not only cater to the kids now. The young adults also have something. We are catering to an older market,” she said.

Cabalinan said Disney is likewise open to exploring other ways it could collaborate with SM to remain relevant to the consumers’ specific needs and preferences.

While Disney is open to new opportunities with SM, she said there is currently no plan to develop a Disney theme park.

“Trends now change quite fast. In terms of being relevant and saying what would work for consumers is something we work closely with our partners on. Each segment, whether for kids or adults, they have their own specific needs and preferences. So, that’s why it is important for us to partner with a local company for us to be able to know how to expand further our businesses,” she said.