Indiantelevision.com Team

(11 October 2006 11 p.m.)

NEW DELHI: RJ Corp in India has signed an exclusive master franchisee agreement with Disney Consumer Products (DCP) to source and market Disney character branded greeting cards, stationary, arts and crafts and party products through specialty stores.

Under the “Disney Artist” brand in India, RJ Corp will sell a vast range of Disney character-led social-expression products, stationery products, including writing and activity products, desktop and computing stationery, etc. aimed at the burgeoning kids’ and youth category in the country.

RJ Corp has also signed an exclusive licensing agreement with DCP to source and market the arts and crafts merchandise in this category under the ‘Disney Artist’ brand to the wider wholesale market in India, Nepal, Sri Lanka, Bangladesh and Maldives.

“This is a significant milestone in RJ Corp’s franchise-led business,” said Ravi Jaipuria, chairman of RJ Corp.

“Through Disney Artist, we will be able to expand our scope into the
kids-led family business, taking advantage of the global brand of Disney as well as our established network in this fast growing market category. We are confident that Disney Artist will see our business connect with families in a whole new way that also synergizes with our existing trade relationships in the kids’ and family market segment,” he added.

RJ Corp will open five Disney Artist stores in Mumbai and Delhi before expanding to other major markets in India.

In the next one-year, the idea is to have 15 Disney Artist stores in place. Over the next five years and investment of Rs. 1 billion will be made to expand presence to 150 stores across India.

According to The Walt Disney Company (India) MD Rajat Jain, “Disney’s franchise management approach looks at each of our characters or sets of characters, or franchises and considers them businesses unto themselves. At their heart is creativity and world-class storytelling. Opportunities like Disney Artist stores are exciting because they create a branded experience to delight consumers in unique ways in India.”

He added that the RJ Corp relationship allows Disney to continue deliver high level of design and innovation that has made the company a leader in consumer products for kids and families. Solid growth indicators for the retail sector, particularly the kids-teen segment in the country, back RJ Corp’s foray into this category.

It has been estimated that the organized retail sector will outgrow the GDP growth in the next five years led by changing lifestyles, incomes and demographic patterns.

Rising affluence levels of the young Indian population along with the
heightened awareness of global brands and international shopping experiences and overwhelming acceptance of global retail formats is expected to contribute to the success of Disney Artist in India.

Disney Artist Stores would house colouring products, activity and art and craft, stickers, party products, school stationary (e.g. note books, pads, binders, files etc), desk top stationary (e.g. staplers, pins, holders etc), greeting cards, baby albums and stamp books.

In 2007, new stationery programs supporting Cars, Pirates of the Caribbean, That's So Raven, Disney Fairies and Disney Cuties will launch in time for the back to school season.

Disney Stationery is also launching new business opportunities with Hallmark inspired by the fun-loving characters of The Muppets.

Disney Consumer Products (DCP) is the business segment of The Walt Disney Company that extends the Disney brand to merchandise ranging from apparel, toys, home décor and books to interactive games, food and beverages, stationery, electronics and animation art.

This is accomplished through the work of DCP's various lines of business: Disney Toys, Disney Softlines, Disney Home, Disney Food, Health & Beauty, Disney Stationery, Disney Publishing, Buena Vista Games, Baby Einstein, the Muppets Holding Company and Disney Shopping, Inc.'s catalog and disneyshopping.com.

The Disney Store, which debuted in 1987, also falls under DCP, through stores currently owned and operated by unaffiliated third parties under licensing agreements in North America and Japan, and wholly owned stores in Europe.