Fearless of Disney, Building Rural IP

When Shanghai Disney opened, Wang Sicong’s father, the famous Chinese businessman Wang Jianlin, said, “We (Wanda) will make Disney China unable to turn a profit for the next 10 to 20 years.” Many self-media outlets, including the Wu Xiaobo Channel, supported Wang’s view by calculating the financials. I also strongly agree with this perspective. The reason is that under the context of consumption upgrades, the rural cultural and tourism industry holds greater potential than Disney parks. The logic behind this conclusion is:

From a geographical advantage standpoint, only about one-tenth of China’s land area is urban. The remaining 8.9 million square kilometers of land is vast rural areas. Future opportunities are likely to be in the countryside, not in crowded cities like Shanghai.

From a development potential perspective, China’s rural areas, from the south to the north and from the east to the west, each have unique traditions and cultures. The rich traditional cultural heritage waiting to be discovered in these areas cannot be compared to a single Disney IP.

From a consumer psychology perspective, the entire Greater China region, including mainland China, Hong Kong, and Taiwan, is primarily made up of agricultural peoples. We have a natural affinity with land, crops, pigs, cattle, sheep, chickens, ducks, and geese. There is an interesting phenomenon: when our overseas diplomatic missions, or global enterprises like Huawei and ZTE, venture into Africa or South America, after securing accommodations, the next step is to cultivate vegetable gardens, and before long, they start raising chickens and ducks. We Chinese believe in “farming and education passed down through generations” and “settling down where we are born.” Disney culture, in comparison, is a form of foreign fast food, much like how we once considered foreign instant noodles a treasure, which are now just a symbol of junk food. Xiaomi steamed buns are now the true favorite. Snow White and Donald Duck can never compare to Bai Niangzi and Sun Wukong.

From a practical demand perspective, modern urban life is filled with concrete, steel, and noise. In such a fast-paced and high-pressure environment, people inevitably experience anxiety and frustration. Disney parks, being small and overcrowded, are not the ideal place to relax. A peaceful rural environment, on the other hand, is the perfect escape.

Of course, building a rural cultural tourism IP is not as simple as cleaning up old houses, putting up a few tables and beds, and calling it a “farmhouse guesthouse.” It requires a deep exploration of resources, careful operations, and the creation of a blockbuster project.

Abroad, an example to follow is Kumamoto Prefecture in Japan. Previously an underdeveloped agricultural area, the local government began to focus on agricultural cultural tourism around 2011. From scratch, they created Kumamon, which became a driving force for the region’s economy, surpassing neighboring prefectures. Kumamon became an excellent IP resource for Kumamoto.

Domestically, a good example is Deqing, Zhejiang, which developed the “Yangjia Le” (Western-style guesthouses) brand. Starting in 2007, Deqing’s Moganshan began developing the “Yangjia Le” brand. From the very beginning, the local government did not encourage farmers to run simple farm guesthouses but focused on high-end boutique homestays. The government oversaw the ecological environment, improved transportation, built walking paths, and helped owners create personalized accommodations. Now, under the “Yangjia Le” brand, well-known homestay brands like “Yinxi 39” have emerged. It is reported that the daily rate for each room in Yinxi is 4,000 to 6,000 yuan, and bookings are already full until December. Even a homestay converted from a pigsty costs over 1,500 yuan per night. Deqing’s homestays were even featured in the 2016 national college entrance exam (Geography paper, Type B), and the “Yangjia Le” brand has gained widespread attention.

In the internet age, consumers tend to focus on the leading brand and ignore the second best, just like we care about Mount Everest being the highest peak in the world, but not about the second highest mountain. Therefore, entrepreneurs aiming to create rural IP should not think about replicating “Kumamon” or “Yangjia Le.” Instead, they should tailor their efforts to the local area, deeply explore local characteristics, systematically organize the local culture, and develop their own IP. Once developed, the IP should be promoted through various channels such as homestay renovations, local product packaging, local customs, animation, online games, and film theme parks. This IP must be operated through both online and offline channels. Key opportunities such as tourism festivals should be leveraged to promote the IP. Additionally, sharing the results of the IP with others and maintaining an open mindset will ensure greater exposure and maximize returns.

To truly succeed in creating a rural IP, the most important factor is the local ecological system. There is a typical example in Hunan: a real estate developer invested 200 million yuan in a beautiful scenic area to create an eco-tourism resort. However, the hotel could only charge 200 yuan per night for a room. Why? Because the local government’s support was insufficient, the surrounding environment was dirty and disordered, with piles of trash. The tourist experience was poor. To build a rural IP, it is essential to integrate local agricultural features, explore cultural connotations in depth, and improve tourism service quality. Even more importantly, you must have your own brand. The reason Disney theme parks are so successful is because they have a great IP.