China should be a-Buzz. With the roll-out of the movie "Toy Story" in China and an unprecedented marketing blitz to push related watches, apparel, books and toys, Disney hoped to cash in. Promotional tie-ins were struck with McDonalds and Kodak.
Only problem: except for the home-grown counterfeits, the toys are missing, the retail shelves are bare. Why? Disney failed to grant licensing rights to any company in China for the marketing of those products.
Disney noted their difficulty in finding a capable licensee, since quality of product and distribution is a primary concern. Hasbro, the maker of Mr. Potato Head, says it encountered major problems in negotiating manufacturing and distribution terms with local concerns. Widespread copyright infringement was another issue which called for care, control and limited selection of licensees. In the meantime, however, Disney has whipped up demand in a 1.2 billion person market which only knock-off products can satisfy. Heads may roll, and not just that of Mr. Potato Head.