Roly International

In this case Roly International, the largest Disney apparel licensee in China, deliberates how to rework their distribution channel strategy to the downturn in the Chinese market. Roly International Holdings Ltd. is a supply chain management company that engages in distributing, retailing, and marketing home decor and consumer products, as well as provides sourcing and logistics solutions. The company also engages in the retail and wholesale distribution of apparel and accessories, toys, and beverages through its network of self-managed retail outlets, wholesalers, and hypermarkets in China, Hong Kong, Taiwan, USA, Europe and Asia.

Roly International should reduce the number of stores as proposed in order to re-establish their expenses. They should try to acquire new licenses on other Disney and non-Disney characters such as Barbie, Hot Wheels, Fisher Price, etc. Also shift its target customers in order to include adults as well because Western fashion and appeal are popular in all ages. In case Disney wants to buy the license back Roly should have other children characters as a backup and maybe try to get a license with Nickelodeon as a backup plan.

There is always going to be a black market knockoff but the quality of those items is not comparable and so customers are always going to go to the name brand.

All markets and economies go thru recessions and that should be a sign for innovation, at this time Roly should concentrate in young adults customers because they are most profitable. When families have kids they are on a budget and do not spend too much in toys and items that are not necessary, older people are always looking for items on sale, and young adults tend to buy name-brand items at regular price.

Roly International should expand their market worldwide that way they do not just concentrate in China and USA. Opening online stores is a good idea in order to be able to target all markets and all customers