WALT Disney is launching a holiday greeting event in the city by joining with Ongoing Department Store as part of its expansion strategy in the Chinese market.

"This co-operation is its latest attempt, indicating its confidence in the Shanghai market," said Rose Ng, national director of the Shanghai Representative Office of the Walt Disney Company (China).

The new store at the Shanghai Ongoing Department Store on Nanjing Lu is one of more than 100 in the city and is a prelude to Disney's overall expansion plan in China, Ng said.

At the 20-day Disney event, the new store will provide children with daily necessities, toys and stationery as Christmas gifts.

"The city's consumer market has good potential for stores selling novelties to children," she said.

Ng told the Shanghai Star in an interview that Disney's strategy is to further consolidate the markets in Beijing, Shanghai and Guangdong Province, which now account for 30 per cent of its sales in the China.

"The sales are expected to grow at a double-digit rate annually. We plan to double the current 30 per cent within three years," she said.

Meanwhile, Disney will develop the markets in 33 secondary cities, including provincial capital cities, to extend its sales to nearly all parts of China.

"The huge project will be completed in two to three years by opening department stores and supermarkets," she said.

Last year, the company's business area in China reached 11,578 square metres, with department stores taking up 47 per cent and supermarkets 12 per cent.

According to a spokeswoman with Disney, the company will make great effort to set up more supermarkets to increase the 12 per cent to 18 per cent next year.

"The company is brewing up an investment plan for a huge expansion programme," the spokeswoman said. She declined to reveal the specific amount of investment involved.

Ng, who is in charge of sales, said Disney products in China are targeted at babies, children and teenagers.