IGHL’s new cinema in Shekou, China, opened using Hong Kong’s platform
	Nobuhiko Kurosu of Japan’s Kadokawa Holdings has found the right China partners in Hong Kong

Kadokawa Holdings, Japan’s largest publicly-listed entertainment content provider, is gaining a foothold in the huge China market through two recent business tie-ups with Hong Kong companies.

In November 2005, Kadokawa Holdings took a majority share in Intercontinental Group Holdings Ltd (IGHL), a Hong Kong company with businesses in film and video distribution, cinema operations, advertising and promotion services and computer games distribution.   

Nobuhiko Kurosu, General Manager, Kadokawa Holdings China Ltd, with Asian headquarters based in Hong Kong, explained: "Kadokawa bought majority shares in IGHL so that it could become the overseas spearhead for the distribution of Kadokawa-produced content and intellectual property rights in Hong Kong, China and South East Asia."   

Exploring opportunities

Kadokawa also established a joint venture with another Hong Kong company, Sun Wah Media, to form Sun Wah Kadokawa Group Ltd. Its prime objective is to explore business opportunities in cinema operations using the Closer Economic Partnership Arrangement (Cepa).

The controlling shares in IGHL and the joint venture with Sun Wah Media extended the reach of the Kadokawa Group in "international water," Mr Kurosu said.

"IGHL opened a new cinema in Shekou last August using the Cepa free trade agreement as IGHL has long-time experience in the cinema operation business in Hong Kong," he added.

"The Kadokawa Group already has business in the areas of film production and distribution, book and magazine publications, game development and cinema management so it makes sense for us to expand into the mainland’s cinema operation business.

Vital trade tool

"The Cepa free trade deal is really important for us to enter China. Kadokawa considers the China market with its huge population and high consumer power as extremely important. If Cepa allows us to extend our film and video distribution and cinema operation in China, more people would be able to enjoy our entertainment products."         

It has always been Kadokawa’s strategy to enter new markets and look for the best local partner "to help us understand the market", and then develop original content for distribution.

In Mr Kurosu’s opinion, Hong Kong provides the vital platform for Kadokawa to expand in Asia.

"Hong Kong is economically and geographically in the centre of Asia. Our Asian headquarters in Hong Kong has allowed us to travel much more easily to every Asian country than if we were to do so from Japan," said Mr Kurosu. "Utilising Hong Kong’s advantages, the city is the best location not just for Japanese companies but for European companies as well."

HK launch pad for Japanese media giant


Related links
Kadokawa Holdings
Intercontinental Group Holdings Ltd
Sun Wah Group