Where getting and spending is child’s play
New entertainment venue sets out to allow kids to mimic adult life
● Augmented reality is on its way to becoming the next big thing for young consumers to demand from their parents, as “experiences” begin to trump traditional toys.
Alpha Investment Group, holder of the licensing right to develop KidZania in sub-Saharan Africa, is one company that is investing for this target market. It says it is set to spend R400million — funded by bank loans — on KidZania, an 8 000m² mini city playground, to be opened in Johannesburg in December, with streets, buildings, a transport system and a functioning economy. Alpha Investments has also begun raising funding outside South Africa to fund the group’s expansion.
Children will be able to role-play careers they see adults doing, such as driving, going to the bank and purchasing electronics and other big-ticket items, said Alpha Investment Group CEO David Ngobeni.
“It’s an effective way to learn. When you are immersed in activity there is 90% retention, compared with 10% when reading and 20% when hearing information.”
The KidZania franchise, which was founded in Mexico, operates 24 parks in 19 countries. More locations are to follow in France, Canada and Saudi Arabia.
By 2020 Alpha Investment Group, which also owns beverage-cooler manufacturer Innochill Africa and IT company Smart Technology Centre, and has minority stakes in MTN and Matrix Marketing, will have opened in Durban and Cape Town.
For the Johannesburg facility, the group will partner with 55 brands in the aviation, banking, education, media, restaurant, retail and other sectors to create the institutions and businesses children observe their parents engaging with. These partners will pay to have their branding displayed. A Boeing 737 will be suspended above KidZania.
Upon arrival at KidZania children each receive 50 kidzos, the city’s currency, which they can bank, save or spend.
“If you want to purchase an aspirational item you can get a job and earn money to buy it. If you get a certificate with our academic partner, Wits University, you increase your earning potential,” Ngobeni said.
The careers children will be exposed to stretch beyond the mainstream, with DJ-ing, surgery and aviation on the menu.
With Toys R Us in the US and Canada filing for bankruptcy last year, and age compression — an industry term for a trend where children are maturing faster — among child consumers, there is a question mark over traditional forms of entertainment. KidZania provides a taste of what is to come.
Jacques Olivier, an analyst at Euromonitor International, said: “We are seeing major developments in terms of augmented reality shaping the future of play globally.
“Companies such as Lego and Disney are developing augmented reality-infused toys in order to keep their brands relevant in an ever-changing technological environment.” AR includes dress-up, role-play and toys that allow children to mimic the activities of adults in their everyday life.
The advantage of AR is that it doesn’t necessarily require extra hardware to allow children to play out their fantasies. This can involve
It’s increasingly about the experience for children Glenn Gillis Sea Monster Entertainment MD
just one item, such as 3-D goggles.
Although the trend has not yet caught on in South Africa, it is likely only a matter of time before it becomes more widespread. Local consumers’ preferences are in line with international trends, Olivier said.
For now, licensed products that relate to popular films and series, such as Ben 10, Marvel’s Avengers and Star Wars, remain popular among South African children.
The most popular category in the local toy and games market, worth R2.2-billion, remains construction, with Lego dominating this category.
“Outdoor and sports toys also added significantly to total market value as parents continue to encourage children to enjoy the outdoors during our long summer months. “The video games category also added approximately R4.3-billion to the overall industry,” Olivier said.
The construction toy segment saw growth of 16% last year, followed by dress-up and role-play with 13% and scientific and educational toys with 9%. The latter segments came off a low base compared with traditional leaders like construction.
“Kids today are more sophisticated. The trend . . . is to give them the adult experience,” Ngobeni said.
Part of the adult experience at KidZania is getting a driver’s licence, which puts children through their paces with testing, renting an electric car and taking Mom or Dad for a drive.
KidZania will also complement Fourways Mall’s entertainment offering, as shopping malls add more lifestyle elements to increase foot traffic, which has lagged in recent years.
“The children’s city will attract visitors from far beyond our regular customer audience,” said Andrew Costa, chief operating officer of Accelerate Property Fund, which owns Fourways Mall.
At R300 per child for four hours and R250 per parent per day, the KidZania experience does not come cheap.
But poor economic growth has not significantly muted growth in the toy and games industry, Olivier said.
KidZania will run discounts for school groups and use a dynamic pricing model where certain time slots will be discounted.
For around R20, children will be able to join KidZania’s loyalty programme, through which they can earn access to red-carpet treatment locally and at its overseas locations, the more frequently they go.
Glenn Gillis, MD at Sea Monster Entertainment, an animation, gaming and AR business based in Cape Town, said ultimately consumers were seeking choice.
“If Toys R Us in the US is anything to go by, stores that simply sell physical items needs to proceed with extreme caution. It’s not necessarily about the thing, but it’s increasingly about the experience for children and adults. I’m not saying toy stores are going to go out of business, but they are going to have to reimagine themselves.”
Part of the experience at KidZania is getting a driver’s licence