DisnEY This artist rendering shows the Shanghai Disney Resort Mickey Takes Shanghai The Shanghai Disney Resort in Pudong is expected to open to the public in 2015 but long before the magical castle goes up, the project is triggering a boom in other types of theme parks across China By Lauren HiLgers A fter 10 years of negotiations, of rumors in the media and speculation on where the theme park would land in Mainland China, Shanghai Disney Resort broke ground on a plot of land in Pudong District just over a year ago. The impending arrival of the Disney resort has heralded a theme park boom in China, with its center seemingly in Shanghai. Campaign photos 26 insigHt NOVEMBER 2012 The Shanghai Resort is intended to anchor a huge new tourism and resort zone in the city, reflecting Shanghai’s goal to be the most international city in China not just for business and finance, but for tourism and leisure. The city is home to a number of domestic theme parks and, in addition to Disney, Dreamworks recently announced plans to develop an entertainment zone in Puxi, where they will focus not on rides, but on live shows, a C o v e r s to r y Kung Fu Panda-style Pagoda, and what they promise will be the world’s largest IMAX Theater. For Disney, the project is challenging the company to adapt deeply-engrained theme park and resort traditions to a new, and very Murray King different market. “This project is of Shanghai Disney turning us into a much more globalthinking company,” says Greg Morley, vice president of human resources at the Shanghai International Theme Park and Resort Management Company Limited. “It’s challenging the way we’re doing work globally.” At the same time, the opening General Manager of the 3.9-square kilometer resort, Mike Crawford targeted to open at the end of 2015, promises to bring thousands of jobs to the area, anchoring what local officials envision to be an expansive tourism district and introducing Disney, and theme parks, to a whole new audience. “Studies from other resorts show that, for every job our resorts fill, it creates two jobs in the community,” says Murray King, the vice president of public affairs at Shanghai Disney Resort. “It’s a huge job creator both directly and indirectly.” The success of Disney’s endeavor, everyone seems to agree, depends largely on how well Disney and China can adapt to each other. Disney culture has its own distinct quirks. Morley and King are speaking from a conference room at Disney’s current headquarters in Pudong, surrounded by frosted glass embellished with what looks like scattered bubbles. If you look close, says Morley, you can find the “hidden Mickeys” in the design. Absent-mindedly, King draws his own Mickey Mouse on a sheet of paper as he speaks. The biggest challenge for the Disney team, they say, will be establishing a Disney presence in China that is distinctly local while at the same time preserving the identity and core values of the company. “We want to give the public an authentic Disney experience,” says King. “We’ve done focus groups and individual surveys with our cast and people want the real Disney experience. The other part is that we want it to be distinctly Chinese.” To strike this balance, Shanghai Disney is being developed with a heightened awareness of local expectations. Considerations such as food, recognition of Disney characters and China’s unique travel patterns are all being taken into consideration during every step of the development process. New hires are required to take a training course on the history and values of Disney. Community outreach and a series of publicity campaigns that are scheduled for the future are expected to increase awareness of the Disney brand. China’s theme park boom Over the last decade, while Disney was negotiating the terms of its Shanghai arrival, the country’s increasingly affluent middle class has been learning about theme parks on its own. Mike Crawford, general manager, Shanghai Disney Resort, points out that an increase in wealth and disposable income leads to more DisnEY Mickey Mouse at the groundbreaking for Shanghai Disney Resort earlier this year NOVEMBER 2012 insigHt 27 imaginE China travel and more demand for leisure destinations like a Disney resort. “It’s a country where Disney already has a number of businesses that continue to be critical for its long-term growth,” says Crawford. “Shanghai is the largest city in one of the world’s most dynamic and fast-growing economies.” This is a sentiment that Chris Yoshii, global director of consulting group AECOM, heartily agrees with. In fact, Yoshii says, theme parks are already a growing phenomenon in China. “We are definitely seeing a growth in interest in visiting theme parks,” says Yoshii. According to Yoshii, visitation numbers at existing parks have been showing strong growth over the last few years and theme park managers have been investing in building better attractions. “The middle class market is growing and there are a growing number of tourists that are traveling around China,” he says. “One of the things they want to see are the different theme parks and different experiences that they don’t have in their home city.” China’s theme parks, he says, have a few distinctions from theme parks that are more popular globally. “In China they don’t like the really thrilling coasters,” he says. “Here it’s much more about spectacle rather than thrills.” The Chinese audience leans toward shows, water features and live entertainment. This, says Yoshii, will be an advantage for Disney. “Disney is much more about shows and themes than it is about thrills,” he says. At the same time, some domestic theme parks are catering to a Chinese audience in a way not available to Disney. A Ghengis Khan theme park, for example, is presenting the ancient warlord as an alternative to Mickey Mouse. In Beijing, a US$4.7 billion theme park showcasing Tibetan culture is also under way. These home-grown parks will likely draw visitors, but will pose little threat to the success of Disney’s arrival. The Disney brand, Yoshii points out, is on the rise in China and the arrival of Mickey and Minnie in traditional Chinese outfits the resort is coupled with a number of other Disney endeavors. Disney English has a growing presence in cities throughout China and, earlier this year, Disney announced plans to open up to 40 retail outlets in the country over the next 3 years. “I think 10 years ago very few people knew much about Disney,” he says. “They’ve done a really good job educating people about what Disney is all about.” superlative country, superlative resort imaginE China DreamWorks will build a Kungfu Panda style pagoda in Shanghai 28 insigHt NOVEMBER 2012 Although Yoshii expects Disney to be a success in China, he recognizes that the company faces some challenges. While Morley says Shanghai Disney is making its parent company more “global-thinking,” Disney Resorts has had a global presence since 1982, when Tokyo Disney opened its doors in Japan. Morley himself has worked at Disney’s resort in Paris as well as in the corporate division responsible for Disney’s global cruise line. Disney’s international ventures have not always proceeded smoothly. When Disney opened its Paris-based theme park in 1992, the company famously banned wine from theme park restaurants. When Hong Kong Disney opened in 2005, the resort’s performance was disappointing and marred by a handful of cultural snafus. During Spring Festival, for example, the resort neglected to give days falling during the holiday special designation. As a result of the oversight, and with the park filling to capacity quickly, the park was forced to turn away visitors with valid tickets. The confrontation between ticket-holders and park security made it onto Hong Kong television. “We learn lessons in every market we go into,” says King. “There is no one-size, one-model fits all.” He points out that Hong Kong Disneyland has gone on to be successful and is C o v e r s to r y “ The resort is going to be huge. At opening, it will include not only a theme park, Shanghai Disneyland, but a resort area that offers hotels, restaurants, shopping, an entertainment district and a lake.” currently in the midst of a major new expansion. “At opening, I think one of our biggest challenges in Hong Kong was the scale,” he says. As Disney’s then newest resort, Hong Kong Disneyland started out smaller than other Disney resorts, though with the new expansion that is no longer an issue. “This is a region where everything is a superlative,” says King. “When you think about the scale of everything, particularly in this market, this is one of the things which matters most to mainland Chinese guests.” Shanghai Disney seems poised not to repeat any of these past mistakes. The resort is going to be huge. At opening, it will include not only a theme park, Shanghai Disneyland, but a resort area that offers hotels, restaurants, shopping, an entertainment district and a lake. And there will be room for future expansion. The theme park itself will be located to the northwest of the lake, and the entire complex will be reachable by subway and highway. This artist rendering shows a winding staircase in the Enchanted Storybook Castle istoCKphoto A theme park celebrating the ancient warlord Genghis Khan is being built in Tianjin to compete with Mickey Among other things, Shanghai Disney will be a transportation hub. “We need to make people feel that the resort is the newest and best that Disney can offer from a design and service perspective, and that it represents the global Disney standard,” King says. “And that it’s comfortable from a Chinese perspective.” Shanghai Disney is the result of a joint venture between Disney and a state-owned enterprise under the Shanghai municipal government. The state-owned enterprise, Shanghai Shendi Group, owns a 57 percent stake in the joint venture, while The Walt Disney Company maintains 43 percent ownership. “For this market, having a great local partner supported by the Shanghai Municipal Government is important,” says King. “It creates a seamless interface between partners, the government and the local community.” Disney, however, is maintaining a controlling stake in the management company that will be responsible for operating the park. As the resort continues to develop, Shanghai Disney Resort has been doing its best to gauge what its visitors expect of them. They have conducted focus groups, organized community activities and held online meetings that give locals an opportunity to NOVEMBER 2012 insigHt 29 DisnEY Disney executives and Chinese officials at the groundbreaking earlier this year in Shanghai express their opinion on the resort. “People want the real Disney experience – they don’t want anything packaged or watered down,” says King. To do that, Disney is focused on food, service and culture. The most important differences, King says, will be in the details of how the resort operates. “Food and cultural traditions are key parts of making the park distinctly Chinese,” says King. The theme park and the surrounding resort will offer a range of Chinese cuisine that is high-quality and familiar to visitors from all over the country. Local vendors will be incorporated into the resort. At the same time, Disney is planning to pay particular attention to local holidays, offering special shows and deals that correspond with Chinese traditional celebrations. In addition, the Shanghai resort is going to be big. Designers have changed the footprint of the park slightly from its global brothers and sisters. While Shanghai Disneyland will be a Magic Kingdom-style theme park, it will have no Main Street – found in every other Disneyland theme park in the world – to accommodate a new layout that Disney is yet to fully reveal. But one of the most distinct features of the Disney theme parks, the storybook castle, will be larger than ever in Shanghai. Chinese audiences like their attractions to be big, “superlative,” King says. So Disney is giving them the biggest. Building the cast When King mentions the details that will make Shanghai 30 insigHt NOVEMBER 2012 Disney distinctly local, he is quick to point out Morley’s work. “I’m sure you’ll see it walking around the office,” he says. “People working here are from the local community, and they reflect that in their work.” The Disney park itself is only just starting to take shape. The first year of construction, King says, was spent sucking water out of the site and making sure the ground was level and stable. Similar technology was used to build the second runway at Shanghai’s Pudong Airport and the Shanghai F-1 track, but Disney had to dry out and flatten a much larger area. “When you’re going at a fantastic speed on some of the world’s most sophisticated ride systems, you want to make sure that that ground is hard, hard, hard,” says King. “It’s the largest scale project of its type anywhere in the world.” While the construction site is still in its early stages and Disney is keeping the details of its resort under wraps, one of the most important projects of the past year has been hiring the core of Disney’s Shanghai-based team. “Every day we come into work and the workforce increases,” says King. The challenges of hiring the right “Cast Members” in many ways reflects the challenges of creating the park experience itself. Morley is tasked with building a team that is largely local, and making sure that his team understands what Disney theme parks are about. “The focus for us right now is building up the team of ‘Imagineers’ who are actually going to design and create the park,” he says. “We currently have about 200 Chinese Imagineers on staff and there are a number of people that will come from the C o v e r s to r y U.S. to provide a certain level of guidance, technical knowledge, Disney knowledge.” The Shanghai Disney Resort leadership has worked to make sure that local Chinese designers have been involved from the beginning. In the early stages of designing the resort, King says, the team made sure that there were Chinese nationals working from their headquarters in Glendale, California. “We’re also “ People want the real Disney experience – they don’t want anything packaged or watered down.” market is that visitors and employees are not as familiar with Disney as their counterparts in other countries. Unlike France, Japan or Hong Kong, Mainland China has no Disney Channel. Chinese tourists are also largely unfamiliar with the theme park experience. “Many of our employees don’t really know what the theme park experience is, because they’ve never been there,” says Morley. “So part of our job in HR is to educate the Cast Members and let them know what they’ve gotten themselves into.” The presence of the alumni helps familiarize people with the spirit of Disney theme parks (this tactic is effective outside of the Disney offices, also. Eight hundred alumni have formed a group on Weibo that also helps inform the general public on the Disney experience). In addition, new employees are required to take a class. “‘Disney Traditions’ is a very ubiquitous Disney class,” says Morley. “We are already teaching it here in Mandarin.” DisnEY – Murray King, Shanghai Disney bringing in Chinese experts,” he says. “So when we come up with an idea, which is based on our interviews and surveys of the Chinese public, we can test the ideas on our experts.” As the project has moved forward, Morley has headed the hiring efforts in China. The opening team for Shanghai Disney, he says, will be the most locally based of any opening team in Disney’s history. “We’ve been really heartened by the level of talent that we have in almost every role,” he says. Two things have helped smooth the hiring process, Morley says. One is technology. “Now you can do work virtually much more effectively than you could in the past,” he explains. Experts that would have been imported to China a few years ago can now work from Glendale, helping to train and to review the work done by the local staff. In addition, Morley says, Disney has a pool of what he calls “Disney alumni,” some of whom have joined the team in Shanghai. The “alumni” are a group of Chinese nationals – Morley estimates there are around 3,000 – who spent summers working at Disney in the United States over the last few years as part of an internship program. Even those who haven’t joined the team, King adds, are helping spread the word about Disney and getting potential employees and potential visitors more familiar with what to expect from the Disney experience. One of the unique challenges of the Chinese Snow White and friends at the groundbreaking As the Disney project progresses, these education efforts are going to ramp up, both inside and outside the company, says King, as are the local partnerships, community outreach projects and other activities that will build awareness of Disney and give the company an increasingly local feel. “We’re going to start to talk more and more about the project publically in the near future,” King says. “We want people, by the time we open the gates, to know the story, to know a lot about the resort and to understand what we built. We don’t want them to come in the gates and not know what they’re doing, or what Disney stands for, or what our theme parks are about. That will make a successful launch.” Lauren Hilgers is a freelance writer. NOVEMBER 2012 insigHt 31 Meet the Cast Several Shanghai Disney employees agreed to answer a few questions about working for one of the most well-known brands in the world. In their written responses to the questions, they talked about Disney, their jobs and what they do every day. Here are the excerpts. vivian Chen Learning & Development Manager Start Time: September 2009 Insight: What did you know about Disney before you came to work at the company? Do you remember your first experience with a Disney character or movie? How old were you? Chen: “When I joined Disney in 2009, I was most familiar with the Disney Parks and Resorts part of the company’s business. Growing up in China, I always loved Disney films too – from the animated films to the action thrillers. I am also familiar with the Disney characters and enjoy purchasing Disney merchandise. My earliest Disney memory might have been when I was just a little girl 30 years ago. There was a famous TV series program featuring Mickey Mouse and Donald Duck.” Insight: Why did you want to work for Disney? Chen: “I first started working at Disney English, which was a new business in China. Having an opportunity to work at Disney felt like a dream come true, and the experience has been both fun and professionally rewarding. Especially being able to work with a group of people who are passionate, creative, fun, and inspiring. I am proud to tell others I work for Disney, and my kids are happy to say: ‘My mom works for Mickey Mouse.’” Insight: How do you think the culture at Disney fits in with Chinese culture? Do you think Chinese people will find anything strange or unusual about Disney? Chen: “There are many similarities between the two cultures. 32 insigHt NOVEMBER 2012 Both cultures have a similar focus on family values, and Disney resorts are truly places for families to come together in a safe and friendly environment. In addition, Disney stories and Chinese stories both advocate optimistic outcomes, for example, with themes such as: love can overcome social barriers; the greatest beauty is found within; you can always count on true friends; the circle of life never ends; and those who are selfish, vain, or cruel never win. Our brand is about hope, aspiration and positive resolutions. Chinese individuals will have no trouble relating to these because of the values that they share.” tina Dai Specialist, Development Support Start Time: November 2011 Insight: Why did you want to work for Disney? Dai: “My experience at Walt Disney World’s International College Program 6 years ago made me realize the great service Disney provides to guests, and the management that goes on behind the magic. I worked on the frontline with Disney merchandise and not only interacted closely with guests, but also developed an understanding of the actual products we deliver. The training I received and the influence of my fellow Cast Members made me think of how great it would be to work with Disney as a lifetime career.” Insight: What is your current role at the company? Could you describe a typical day? Dai: “I am a development support specialist for the Project C o v e r s to r y Management Team of Walt Disney Imagineering Shanghai. My responsibility is to support our project management executive and creative executive as they communicate with our Chinese partners and local regulators. Each day is very different for me. I spend most of my time translating documents, coordinating and interpreting meetings with our local partners.” Janice sindoni Insight: What makes working at Disney different than working at other companies? What has surprised you most about working at Disney? Sindoni: “Anyone will tell you this: what makes Disney different is its people. I have worked for several large companies with very good people, but Disney people are great! They are happy, helpful, kind, creative, intelligent and just fun to be around. What has surprised me most is that after 15 years with the company, I still find this to be the case – now more than ever.” Community Relations Manager Start Time: March 2012 at Shanghai Disney Resort project; held various roles at Disney since 1990s Insight: What did you know about Disney before you came to work at the company? Do you remember your first experience with a Disney character or movie? How old were you? Sindoni: “I knew a great deal about Disney stories and Disney parks, but not very much about the company. Honestly, I don’t remember my first experience with a character or movie. Disney has been a part of my life for as long as I can remember, from enjoying Disney vacations and movies to having favorite Disney toys and clothes.” Insight: What is your current role at the company? Could you describe a typical day? Sindoni: “My current role with the company is Manager of Community Relations at Shanghai Disney Resort. I have the opportunity to develop partnerships and programs with local non-government organizations to address key community needs which align with Disney’s corporate social responsibility and philanthropy goals, focusing on compassion, creativity and conservation. It’s a real privilege to be able to work with organizations that are making such a positive difference here in Shanghai. So far, there has not been a single typical day – every day is an education, with new experiences and new opportunities. Chris shi Project Director, Design Management Start Time: October 2010 Insight: What did you know about Disney before you came to work at the company? Do you remember your first experience with a Disney character or movie? How old were you? Shi: “I had some knowledge about Disney films and Disney Parks and Resorts in America. My first experience with a Disney movie was 18 years ago when my first son was born in Vancouver, Canada. I took note of the Disney movies that my neighbor’s daughter was watching and started to watch them with my family.” Insight: Why did you want to work for Disney? Shi: “I was involved with the Hong Kong Disneyland Resort when I worked in Hong Kong. Initially, I was motivated to join the team because it was a large and well-known project. However, I soon became more interested in the project team because of the company culture. It is an open environment among professionals, and Cast Members are encouraged to express their opinions. In addition, I am drawn to the level of trust among the WDI (Walt Disney Imagineering) colleagues, which inspire me to bring more and better contributions to the project.” NOVEMBER 2012 insigHt 33