Makers of consumer goods may have Hollywood to thank for increased sales among Chinese consumers.

With rising consumer spending and a love affair with foreign films produced by the likes of Walt Disney Co. (DIS) and Twenty-First Century Fox Inc. (FOX), Chinese consumers are increasingly turning away from fake merchandise, opting for the real deal they see in films, reported The Wall Street Journal. China’s box office pulled in $6.6 billion in 2016, up from $2.7 billion in 2012, reported the WSJ.  

That doesn’t mean the counterfeits are going away, by any means, but it does mean an increasing number of consumers are willing to pay more for the higher quality product. According to the Journal, when the means are there, consumers in emerging economies will skip the fake for the real thing.

So Long, Pseuds

That bodes well for Disney and 21st Century Fox, both of which have stores in the country. In May, Fox opened a Beijing store dedicated solely to “The Simpsons” and has opened 24 more outlets throughout China since then. Disney opened the world’s largest Disney Store in Shanghai two years ago. Disney characters, including famed Mickey Mouse apparel, is sold through China via licensing deals, noted the WSJ. Shanghai-based Oriental DreamWorks earned $146 million at the box office but raked in $220 million from sales of books, bags, toys and other products, reported the WSJ, citing an Oriental DreamWorks executive. What’s more, entertainment merchandise sales jumped 30% in China in 2015, according to the Licensing Industry Merchandisers’ Association, up from $4.5 billion in the year earlier. It’s a drop in the bucket compared to the $43 billion in the U.S. but the WSJ noted it’s easily beats the 5.6% growth rate around the globe.

Licensed entertainment merchandise sales in China are projected to reach $10 billion in 2020. At that point, China becomes the largest market for licensed goods in Asia, pushing aside Japan. That doesn’t mean counterfeiters won’t be doing brisk business as well. The increased demand for the entrainment merchandise could fuel sales of even more knockoffs. (See also: Guggenheim Raises Disney to Buy, Ups Price Target.)

All of this change comes at a precarious time for Alibaba Group Holding Ltd. (BABA), the leading ecommerce company in China. With a tarnished reputation because of counterfeits, Alibaba has been aggressively fighting back, calling on the government to be tougher on offenders. Alibaba head Jack Ma published an open letter to the National People’s Congress on his Weibo account earlier this month calling out Chinese lawmakers for being too easy on counterfeiters and urging them to raise the maximum time in prison as well as other penalties.

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