(Yicai Global) Sept. 13 -- The rapid rise of digital technology and artificial intelligence is reshaping consumer lifestyles and spending patterns in China, opening up more opportunities for Walt Disney, according to its regional vice president.

The US media and entertainment giant plans to further explore the possibilities in New Retail, Kermid Rahman, vice president and general manager of consumer products at Walt Disney China and Korea, said at Walt Disney China's 2019 kick-off conference on Sept. 11. Disney will also prioritize digitalization in its China business operations, he added.

New Retail is a term coined by Alibaba's Executive Chairman Jack Ma to represent the integration of online and offline retail, logistics and the latest tech trends, such as internet finance, artificial intelligence and big data.

Disney has made remarkable progress in its licensed consumer goods and movie businesses by ramping up localization and New Retail channel development in the Chinese market, Rahman said.

Walt Disney Pictures became the first Hollywood company to gross more than CNY5 billion (USD730.3 million) in the Chines mainland for two consecutive years, Rahman said. Its output attracted some 180 million Chinese cinema-goers and Marvel movies'box office receipts hit CNY12 billion over the last 12 months.

Apart from content production, Disney derives most profit from merchandising, bringing Disney stories and characters to consumers via theme parks, experience venues and consumer goods sold through retail partners and its e-commerce platform ShopDisney. Disney-licensed goods logged double-digit sales growth over the past five years, and about 85 percent of it came from local partners.

It sold 66 Disney-licensed products every second in China this year, where 5,000 Avengers-themed phones sold out within seven seconds,Rahman said, adding that if the number of SongSong-branded stuffed toys sold in a year were placed in a line they would stretch from Shanghai to Beijing. That is about 1,320 kilometers.

The firm's Chinese team is committed to product localization through licensing operations, e-commerce and two Disney stores, the VP said. The company leases intellectual property rights for its more than 600 local partners to turn the characters into Disney-themed products with distinctive features and original design. The company has a creative product development team for every regional market in China, and some of the products that feature Chinese characteristics are even exported.

Editor: Emmi Laine