The post-85s and 90s new generation parents ’lifestyle changes have brought about new consumer demand. It is reported that in 80% of households in China, children ’s consumer expenditures account for 30% to 50% of household consumption expenditures. A survey by research institutions indicates Among the newly-opened shopping malls in 2017, children's parent-child segments accounted for 17.9%. Compared with 2014 ~ 2016, the percentage of children's amusement increased significantly in 16-17 years, from 13.2% to 17.9%, with an average annual increase of 1.5%.
Therefore, in recent years, offline children's amusement formats under consumption upgrades have become the engine that attracts the flow of people in shopping malls, and the trillion-scale market size has continued to attract more and more parent-child experience services and product players to join them. In terms of offline children's amusement formats, it generally includes two forms. One is a mother-to-child retail brand such as Kid King and Toys R Us. While providing goods and services, it begins to integrate cultural experiences and social functions. , To join children's amusement, interactive activities and other entertainment projects; there is a pure children's playground brand, such as Youyoutang, Molly Fantasy, Aofei Happy World, honey bud paradise and so on.
Among them, Youyoutang is the head brand of the family parent-child entertainment chain, and the ??百乐宫网上游戏?? continues in 2018. At the beginning of the year, there was internal ??百乐宫网上游戏?? that the Youyoutang capital chain was tight and some merchants could not get the balance. Then in early April, Miya acquired more than 40 stores in Beijing, Shanghai, Guangzhou and some major second-tier cities. Beginning in May, the Youyoutang Parent-Children Park was blown out by people in many places, and the annual card was unavailable. Except for closing the store and closing the loan and defaulting on the loan, Youyoutang was brought to court by its fourth largest shareholder, Ao Fei, and sued youyou News of more than 9 million royalties, royalties, and breach of contract payments have continued. On December 10, Youyoutang was once again revealed that Beijing Ginza Harmony Plaza Store had suddenly withdrawn, and many local subsidiaries could no longer be contacted.
The children's industry is an emerging industry in China, and the development history of children's amusement is shorter. Why does Youyoutang, a large chain amusement provider with 8 years of industry precipitation, face this situation? For those who are eager to try offline children's amusement industry, what is the essence of this industry? In addition, we also interviewed industry veterans to find out whether offline children's playgrounds are pseudo-propositions and what the development model of Yuyoutang can refer to their peers. (Note: at the request of the interviewee, it is inconvenient to disclose the name)
Why is the Youyoutang no longer beautiful? Operating a children's playground requires insight into the nature of these industries
Since its establishment in 2010, Youyoutang has received investment from multiple parties in 14 to 15 years, with an amount of RMB 800 million before and after, making it an influential brand in China's children's park industry. Youyoutang's stores include the earliest single stores, general stores, scene parks, theme parks, mini theme parks, and home entertainment centers. According to data from March 18, the number of Youyoutang stores exceeds 280, of which 230 are directly operated stores, covering 30 provinces, and the total operating area exceeds 180,000 square meters. After 8 years of development, the industry giant that once achieved the industry's scale and brand effect is extremely high. Youyoutang is now in a dilemma. The reason behind this can hardly be thought.
In fact, operating large indoor children's parks is costly and profitable. Although the shopping malls have brought traffic, the site rent, labor costs, and facility maintenance costs have risen, which will definitely bring a lot of pressure on businesses. What should not be overlooked is that the profitable golden period of indoor children's parks is still concentrated on weekends. If operators do not have strong capital, it will be difficult to recover costs in a short time. The mother and baby industry observation observed the development status of Youyoutang, and interviewed a number of industry professionals. Regarding previous rumors that the Youyoutang headquarters was disbanded, the other party said, "I don't know. I don't seem to see this sign at the moment." The industry essentially analyzes the nature of the format operation of children's parks in a deeper level.
1.Inferiority of the industry itself
Children's playground has its own inherent disadvantages, that is, non-standard industries do not support single-brand large-scale replication chains. For example, Starbucks, McDonald's, KFC, and global chain brands like Zara, H & M, and Uniqlo all have their own core competitiveness and standardization model, and then make large-scale replication in the market to generate scale Effect and market monopoly. This is a common way for large-scale development of a single brand.
However, children's playground is a non-standard industry and cannot support a standardized way to develop. In the children's park industry, it is often necessary to design and plan each store according to different cities, different locations, different shopping malls, different property conditions, and different customer groups around it. Each store needs to be customized. Operation and management. When the scale of your brand is larger, the number of stores is larger, the larger your management radius is, and the higher your management cost is.
2. Expansion costs too fast
Children's playgrounds are not like retail. With the expansion of scale, the marginal cost will become lower and lower. The cost of children's playground stores will not decrease with the expansion of scale, but will increase. Analyzed from the cost of opening a store, children's parks accounted for a large proportion of the initial fixed assets (equipment), current assets (rental) and operating costs, so the more stores, the lower the profit.
When the children's park is relatively small, proper operation methods can make the store do well, but when it goes on the road of scale, it will be limited by many bottlenecks, especially like Youyoutang, which is acquiring capital. The blind expansion in a short period of time later, coupled with the constraints of the industry's inferior roots, caused huge cost pressures. As a result, Youyoutang was even sued by its own shareholders in court for defaulting various authorizations, royalties, and liquidated damages.
Offline children's playground is not a pseudo-proposition focused on the design of business models
The reflection from the Youyoutang to the children's business format can not help but make the entire mother and baby industry ask a question: is pure offline children's playground a false proposition? Do you need to grow in other formats? Is this industry worthy of entry? Among the relevant professionals interviewed by the mother and baby industry, senior management who had participated in the operation of well-known children's park brands gave their own answers and analysis.
1.Pure children's playground is just needed in the market
Judging from the market environment, children's playground is actually just a need. With the continuous development of domestic business and cultural environment, the upgrade of cultural consumption will fully erupt, offline experiential consumption will continue to rise, and children's cultural entertainment and family-type entertainment consumption demand will continue to increase. In the current commercial body, this parent-child type indoor park has become an indispensable theme project in the shopping mall. Through this project, it meets the daily entertainment needs of each member of the family, thereby driving other shopping mall projects. Consumption.
2.Children's playground does not need to be attached to other formats
The veteran practitioner compares the offline paradise section of Kid King with existing pure children's paradise brands. He believes that "compared to pure children's paradise, the paradise part of Kid King's stores can only be used for offline shopping. A supporting function is used to increase the stickiness of retail members. Retail is the premise of all consumption and transactions. Obviously, this cannot fully meet all the needs of family parent-child entertainment. The family parent-child entertainment needs are established without any retail Consumption, there can be a space to meet the needs of family parent-child interaction for a period of time. In fact, this is a lease of time and space. Therefore, the paradise of the child king model and the real children's paradise are completely two formats, children The park does not exist in other forms of business. The park itself should be the core business. "
3.The positive development of the industry can be guaranteed under the asset-light operation model
Against the backdrop of the need for parent-child interactive consumption and the rise of offline entertainment of different scales, offline entertainment is developing in a diversified manner, and theme parks and children's formats will double their growth potential. In the trillion-dollar children's consumer market, fierce children's business formats are starting to differentiate themselves, and content is the core of the differentiation of children's playgrounds. Among them, the focus is on the creation of IP. However, Youyoutang and other brands are not lacking in IP creation. Obviously, IP creation is not a symptomatic solution to the pain points of the industry.
The senior said that although children's playground is not suitable for large-scale development of a single brand, enterprises can better develop the industry of children's playground through resource integration. According to the needs of different shopping malls, companies or brands can integrate the IP authorized resources, content resources, and various cooperative resources in the market, and continue to introduce new ideas to provide customized solutions for shopping malls or parks, which can meet different children's parks in shopping malls. With the differentiated competition of IP, enterprises can also maintain an asset-light structure and localized operating model, which can avoid the pain points of the children's playground industry.
Today, culture and entertainment have become an integral part of people's daily lives. Children's playgrounds that provide offline scene experience and parent-child interaction are even more important expenditures in family life. No matter for home users or the market, children's playground is indispensable. Although there are many industry brands, the market is fragmented and the business model needs to be improved. It is expected that more teams or brands will continue to innovate and promote the industry to a more active track go ahead.