US movie-theater operator Cine-mark Inc plans to use its Taiwan experience to open new outlets in two Chinese cities in 2003, an executive of Cinemark Taiwan told the Taipei Times yesterday.
"Based on what we've learned here in Taiwan, the US company [believes] it now has a clear picture of how to run cinemas in China," said Jack Cheng (程立峰), general manager of Cinemark Taiwan.
The two China-based theater complexes are scheduled to open in Nanjing and Wuhan in the fall of 2003.
With movie theaters in 33 US states, Texas-based Cinemark currently also operates in Canada, Mexico and 10 other nations around the world.
The group entered Taiwan in November of last year, opening a 13-screen cinema complex in Taipei's Core Pacific City mall (京華城).
Cinemark holds a 30 percent stake in the local venture, while Core Pacific Group and several Hong Kong-based venture capitals control the remaining 70 percent.
Cinemark Taiwan was the company's first step into Asia, and was designed as a stepping stone to China.
"China is a very attractive market and Cinemark had planned to expand into that area even before entering Taiwan," Cheng said.
Choosing to lay the groundwork for a move into Asia in Taiwan turned out to be a good idea.
For instance, rather than establishing stand-alone cinemas, Cinemark has built on the Taiwanese model of combining its movie theaters with food courts and shopping centers, he said.
Cheng says Cinemark theaters in the US are usually stand-alone facilities.
"Chinese like to follow the masses and prefer to do several things in one place, while Americans are used to going to one place for one agenda" he said.
In addition, due to a shortage of land and massive parking problems in China and Taiwan's big cities, multi-functional complexes are more consumer friendly, he explained.
New Cinemark outlets in China are expected to be built more like shopping centers and executives from Cinemark Taiwan will be in charge of daily operations, according to Cheng.
Cinemark will hold a 49-percent share in the new cinemas, and Chinese partners will control the remaining 51-percent share.
Cheng refused to elaborate on the size of the investment, but did say the company aims to set up some thirty outlets in China in the next five to 10 years.
Rather than large coastal cities, Cinemark is more interested in inland locations.
"Since the competition in Shanghai is very tough and the rental fees are quite expensive, we have decided to start from the hinterland," Cheng said.
Cinemark's Taiwan partner, Core Pacific Group, is currently not involved in Cinemark's China expansion plans.
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