June 23, 2011 11:25 pm
Making the world of work child’s play
By John Paul Rathbone
Royal Canin-branded care at KidZania Tokyo
Gemma, an 11-year-old dentist, has scrubbed up with Procter & Gamble soap and is inspecting back teeth. Jaime, a toddler firefighter, is spraying water next to a sign advertising home insurance. Meanwhile, little Carlos is landing an American Airlines jet while a gaggle of 12-year-old couriers passes through his cabin, wearing TNT livery.
Welcome to KidZania, perhaps the only place in the world where child labour is actively encouraged. The idea was born in Mexico just over a decade ago when Xavier López Anconca was approached by a friend to co-invest in a day care centre where children would play at working and businesses.
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That was when the 47-year-old former private equity whizz, who once managed bottling companies for GE Capital, had a revelation. “It was the first spark,” remembers Mr Lopez, now KidZania’s chief executive. “Nobody owns role-playing.”
Now they do, and KidZania has gone global with it. The first KidZania role-playing theme park for four- to 14-year-olds opened in a Mexico City shopping mall in 1999. “We were expecting 400,000 visits in the first year; we got twice that,” says Mr López. The second KidZania opened seven years later in Tokyo.
It has since been franchised to six other centres, including Dubai, with a dozen more under way in cities as far-flung as Kuala Lumpur, Shanghai, Istanbul, Moscow, São Paulo and Santiago. By the time they open, Mr López expects KidZania’s parks to attract 13m visits a year – about the same number as are drawn to Disneyland annually.
Although KidZania’s beginnings may have been happenstance, the model for Mr López’s edutainment empire has evolved into a well-honed strategy. First, identify a dense urban centre where relatively prosperous young parents will pay repeatedly for their children to play safely indoors. That mostly means the expanding middle classes who live in the megalopolises of emerging markets such as Mexico. “It’s why we only have one centre in Europe; it doesn’t offer the urban density we need,” says Mr López.
Second, ensure the city is home to a slew of corporate headquarters – especially companies with large social responsibility budgets that will pay KidZania to build its branded mini-cities: as much as 40 per cent of each centre’s construction costs are met by sponsors.
That is also why entrance tickets to the Mexico City centre are boarding passes given at an American Airlines check-in counter, and why children build houses using Cemex-branded materials, call each other on mobile phones provided by Telcel and bottle fizzy drinks in a facsimile of a bottling plant. In other jurisdictions, local brands are used: Emirates is the airline in Dubai; Sony runs the Tokyo photographic studio.
To be sure, KidZania can be seen as a grim training ground for the next generation of consumers. But Mr López counters “we are only copying the real world”. Besides, he adds, children learn valuable social skills, including the value of money. “The ATM ceases being a magic machine where money miraculously appears,” he says. “Here kids learn, experientially, that you have to earn it; nobody teaches that at school.” About a third of KidZania visits in Mexico are from schools.
The fantasy has become highly elaborate. Every KidZania centre has a “government”. Children are paid in “KidZos”, which they can redeem for sweets or stash in their bank account. They are also addressed with an adult “Mr” or “Ms”, and the greeting is always “Good night”, never “Good day” because, as one teenage KidZania supervisor explains, it is at night that children’s dreams come true.
Mr López’s next step is to roll out 12 centres across the US, in conjunction with a yet to be determined strategic partner. “It’s the biggest but also the most competitive market,” he says. “You don’t get a second chance at the US.” And beyond that, an initial public offering perhaps? “Of course,” he says, with no trace of the fantastical.
Copyright The Financial Times Limited 2011
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