If you keep up with the Walt Disney Company and its many varying ventures, you’ll no doubt know all about Shanghai Disneyland, Disney’s first theme park to be built in China. However, what you may not know all about is Disney’s newest and largest competition in the region; a corporation that goes under the name the “Wanda Group”.
Though you might not know their name, it’s doubtful that you have never come into contact with any of their products. The Wanda Group is the world’s largest multinational conglomerate property developer. It owns and operates companies in the sectors of finance, commercial real estate, sports, entertainment, tourism, and even has its own extensive collection of valuable art. If you have ever seen a movie at an AMC theater or been on a Sunseeker yacht, then it’s likely you have come in contact with the Wanda Group.
The beginning of the feud
Image: Paul Sableman, Flickr (license)
So, you might be thinking, “Yeah, the Wanda Group is big but what does this have to do with Disney?” Well, a lot, actually. The two companies have been amicable business partners since AMC was bought out by the Wanda Group back in 2012. They have worked together to keep screening Disney Animation and live action films at AMC locations and, in fact, Disney has AMC theater buildings on its property at Downtown Disney in California and Disney Springs in Florida. However, when Disney announced that it was going to be opening a new theme park in China, Wang Jianlin, the richest man in China and chairman of the Wanda Group, came out in opposition of the project. Reports state that Jianlin called Shanghai Disneyland a mistake destined for failure and warned the company that they “should never have entered China”. This announcement came as a shock to Disney, who says that they have always had a good relationship with the Wanda Group and did not understand the public dissent by Mr. Jianlin.
Image: Disney
So why are these two Fortune 500 companies feuding? The answer may lie in the Wanda Group’s future plans for commercial entertainment real estate in China. In May of 2016, just one month before the grand opening of Shanghai Disneyland, reports starting funneling in of a theme park being opened by the Wanda Group in Nanchang, a city just seven hours south of Shanghai. It’s unknown whether the close timing of the two park openings was planned or a pure coincidence. However, the Wanda Group was clearly unimpressed. It was then that word came out of the Wanda Group’s plan to open 15 theme parks in China and 3 overseas within the next 6 years. Their plan? To overthrow Disney as the world’s top operator of tourism.
Is this even a real threat?
Image: Fortune Live Media, Flickr (license)
So, just how viable is this threat to the mouse? Reports from China show a likelihood that the Wanda Group may indeed capture market share from Disney within the region. For one, the Nanchang Wanda Park is much more affordable to locals, with a ticket costing 198 yuan (or around the equivalent of $29.75) a day, whereas a Shanghai Disneyland ticket is 370 yuan ($55.58). And if you want to go during peak times or holidays, the cost difference is much greater with Nanchang charging just 248 yuan ($37.26) per ticket compared to Disneyland Shanghai’s 499 yuan ($74.96).
When locals were asked about their choice of park, many said they would choose to visit the Wanda location due to its convenience and cost-effective prices. In addition, the Nanchang Wanda Park has attractions that Disney simply does not offer. For instance, Nanchang’s Wanda Mall, a comparable entity to Downtown Disney, is located entirely indoors and features a movie-themed park and full sized aquarium. The Wanda Group has even gone as far as to say that Disney lacks innovation and that they plan to take on the challenge of creating new and exciting attractions. With 15+ more parks on the way, the Wanda Group’s most viable threat comes from the tourism choices of Chinese locals. Should the Wanda parks gain steam, those outside of Shanghai may choose to stick closer to home, saving both time and money and giving their business to the Wanda Group. Arguably, the biggest test will be from the newest Wanda Park located in Hefei, a city lying only two and half hours west of Shanghai. It is slated to open in September, just two short months after the opening of the Shanghai Disneyland park. Should Disney see a dramatic drop in attendance, it may be time to set a course of action.
Looking towards an even bigger future
Image: EuropaCity Flickr, Flickr (license)
Unfortunately, Shanghai Disneyland isn’t the only Disney park at risk. The Wanda Group has strategically placed two of their future developments in both Guangzhao, China and Paris, France in order to draw crowds from Hong Kong Disneyland and Disneyland Paris. The move to open parks in Guangzhou and Paris are not only strategic in location, they are also financially motivated, as it is well documented that Hong Kong Disneyland and Disneyland Paris have had the lowest numbers of guest turnout in comparison to the rest of the Disney Park’s locations. Guangzhao is located just 74 miles from Hong Kong Disneyland and the Wanda park will offer a full outdoor theme park in addition to the Wanda Mall, an indoor ski slope, a water park, an indoor movie park, and a stage show.
The Wanda development in Paris will go under the name of EuropaCity and is a collaborative project between the Wanda Group and Immochan, a French commercial developer. Its media kit promises that “EuropaCity will be a unique metropolitan destination where visitors can enjoy contemporary circus shows, go antiquing, dine in a gourmet restaurant, go fruit and vegetable picking in the urban farm, shop in department stores or concept stores, try the latest activity in the adventure park or the latest ride in the theme park.” EuropaCity is planned to open in 2024.
Other parks that have been listed as scheduled for construction are all currently located in China. Nanchang, Xishuangbanna, and Changbaishan have already opened their doors to the public and Guangzhou, Heifi, Chengdu, Wuxi, Harbin, Quingdao, and Wuhan are all go for launch according to Wanda’s official website.
We already know that five of the remaining Wanda theme parks are set for China. So what about overseas? Paris will be one of three international locations for the Wanda Group, the remaining two are a mystery. However, recently introduced information may set the Wanda Group’s sights on London. In mid-July, reports came in that Wanda was bidding to acquire a 49 percent stake in Paramount Pictures. Should the bid go through, this would give Wanda access to London Paramount, a proposed theme park in Kent, England that has been extensively delayed since its announcement in 2012.
The Wanda Group just keeps growing and growing. So, will they be the next big name in entertainment? Only time will tell.
