80% of derivatives are pirated movie-related products. The market is stumbling off

On August 27, 2010, the American DreamWorks gift product launch conference was grandly held at Jackie Chan International Studios in Beijing. The press conference gathered senior managers from film production companies and distribution companies, leaders of major movie theaters, Fortune 500 companies and business elites in the gift industry.

At the press conference, it was officially announced that Beijing Shadow Technology Trading Co., Ltd. has become the derivative licensee of the DreamWorks film "Shrek 4". Mr. Wang Lei, general manager of the organizer, Shadowtrace, attended the meeting and passionately talked about the Shadowtrace team's continuous pursuit, exploration and struggle for the film derivatives market in the past five years. He also said that he would strive to the development and growth of China's localized film derivatives market.

Long Tail and Differences

In October 2004, Chris, editor-in-chief of Wired magazine in the United States. Chris Anderson first proposed the Long Tail theory in his article. He told readers that the future of business and culture lies not in hot products or at the head of the traditional demand curve, but in the infinitely long tail of the demand curve.

As an indispensable link in the film industry value chain, film derivatives are a huge long tail in the film industry and are full of unlimited potential and hope in China's future film market.

When talking about why we should cooperate with the eight major Hollywood film companies and DreamWorks to explore the film derivatives market, Mr. Wang Lei, general manager of Shadowtrace, understood this way: Data that film derivatives account for a large part of the film industry's revenue in the European and American markets has been mentioned many times. China's film market has our own particularities, but today we need to learn from Hollywood's advanced models, combine our own characteristics, and through dialogue, learning and cooperation with them, let Shadowtrace stand at the forefront of the industry and develop rapidly. rdquo;

This time, Shadowing's cooperation with DreamWorks is first of all due to the recognition of Shadowing's strength by world-class film companies. It is also a comprehensive review of Shadowing's product development, channel expansion, team building and other resources over the past few years. But in the end, Shadow is to work together through the joint efforts of a young entrepreneurial team to find a development path for film derivatives suitable for the China market. Not only will we cooperate more with domestic film companies, but we will also sell the products we have developed to Southeast Asia and Europe and the United States in the future, so that they can become fans of our products. rdquo;

New opportunities for corporate customers

Some industry insiders believe that there is actually another potential market for film derivatives to tap. In this regard, Shadow King pointed out that the potential of movie-themed gifts developed for corporate customers is immeasurable. For example, in the process of corporate product promotion, adding film cultural themes can greatly enhance the emotional value of the gift itself, thereby strengthening the connection between the company and customers and deepening emotional exchanges. rdquo; Film derivatives not only play a vital role in improving the film industry chain, but also inject fresh blood into the corporate gift industry.

In the future 2011, Shadow will join hands with many film companies such as DreamWorks, Paramount, and Warner in the United States to launch daily functional products and collectibles with the theme of movies such as "Kung Fu Panda 2","Transformers 3","The Adventures of Tintin", and "Puss in Boots". It will also establish good cooperative relationships with corporate customers in long-term strategies through the advantages of gift channels across the country. rdquo;

The road to legal film derivatives has a long way to go

Although companies such as Shadowtrace have begun to cooperate on licensed legitimate movie products, pirated movie derivatives are still rampant in China. According to incomplete statistics, more than 80% of movie derivatives on the market are pirated products. Manufacturers of such products often imitate and pirate based on genuine products, quickly copy and produce them during movie schedules, and rely on wholesale markets and Internet and other channels to release and ship, which has formed a complete piracy industry chain. Take the movie "Yangtze River No. 7" as an example. During its release in 2008, except for a small number of which were licensed by the original version, all the seven dolls that appeared all over the market and even on the overpass were pirated. In the end, Xingye also appealed bitterly: I hope everyone respects intellectual property rights. Any form of piracy will stifle the creator's efforts and development space! rdquo;

Shadow King always believes that the management of pirated products definitely requires a process. Blocking is of course one solution. On the one hand, relying on the conscience and self-discipline of the sellers, we have seen that "Shrek 4" sells pirated products in some studios, but more studios are still selling genuine products we have developed exclusively. On the other hand, corresponding policy support is also needed. If the country can increase its efforts to crack down on the piracy market, and the studio can formulate strict procurement systems like many large companies, it can avoid the inflow of piracy. Of course, we believe that the most important thing is to clear up. For example, several derivatives of "Shrek 4" developed by Shadow this time are targeted to the public. The products are daily necessities that families and children like. They are very cost-effective, which is enough to make pirated products have no room to drill. rdquo;

Although compared with Hollywood, China's film derivatives market has only just faltered off. However, with the increase in more and more films with box office exceeding 100 million yuan and the leapfrog development of the film market, this derivative market has also rapidly started with step-by-step growth and gradually entered the public's attention. For this young market, how to borrow resources to explore deeply and develop more rapidly may require industry insiders to redouble their efforts, but also conduct in-depth research and exploration.

Shadow Profile

Beijing Yingzong Technology Trade Co., Ltd. was established in 2005. It is a professional and young entrepreneurial team engaged in the development and production of film derivatives. With film derivative products as its core, Shadowtrace has rapidly developed into one of the leading companies in the same industry in China. It has cooperated with many domestic and foreign film companies such as Hasbro, Paramount, Warner, Fox, Orange Sky, and Starlight International. We have had good cooperation and continue to work side by side in the field of genuine film derivatives, developing and producing film derivatives for many films. At present, the sales network has spread across the country, maintaining good cooperative relations with nearly 30 domestic first-class movie theaters. Its products cover more than 300 movie studios and many corporate customers across the country. It is a leading enterprise in the domestic film derivatives industry.