But overall the industry is not much closer to critical mass. Most of the middle class populace still can't afford the entry ticket (Rs 100-250 per adult and Rs 60-150 per child up to 4 feet height). The industry is still branded as hi-fi by the middle class. On the finance side, most parks are not on time with their interest payments, as GIIC reports show.
What am I doing for the downtrodden, the lower class? Am I reserving the Park/facility for them for at least one day in a year?The growth path:
There are conflicts over what this century will bring about -- e-economy (e-commerce) or E-economy (entertainment)? I believe that the growth of the E-economy will be facilitated by e-economy. A favourable perception among markets as well as bankers is possible only when promoters perceive the customer as king, and do it first, fast and right. The growth will be nourishing and hygienic.
Prerequisites for growth:
The first is debt-worthiness. A promoter's debt-worthiness is of prime importance for funds to flow in from banks, institutions or investors. Norms are that a debt/equity ratio of 1:1 is most preferred for granting term loan. Personal references are useful to bankers in evaluation.
Most promoters are trustworthy and would like to pay back banks or investors. But this is hard to believe in absence of proven performance in case of first generation promoters. Exceptions like Nicco Park (Calcutta) apart, no listed park shows money in the balance sheet.
Given the financial performance reported by parks, some financial institutions like GIIC have reportedly stopped giving term loans to amusement park or waterpark projects.
The next is location. Location can be a single most important determinant for the success of a park or a family entertainment centre. A small park should be located in close proximity (5 to 15 km) to a city of above 10 lacs population. A medium/large park can cover a domain of 500 km or 1000 km, respectively. There have been so many instances of parks having failed due to bad location! The family entertainment centre (FEC), concept works much better in cities.
Improving profitability:
Merchandising -- straight to profit -- is a very strong tool. A number of things need to be done.
Create beautiful kiosks, add automatic vending machines, and offer popular brands and variety. In rides, plan and manage peak hour rush and adopt innovative marketing ways. Co-brand merchandise with your park name. The gameplan is to get 30 per cent income from food and merchandise.
The role of amuseonline.com:
Amuseonline.com, developed by TEAM Projects & Consultants aims to enable parks and FECs to offer better customer service through a number of ways. We host homepages of amusement parks. There is a forum for online customer surveys. Amuseonline.com helps industry people source latest technology equipment, slides, games, machines, merchandise and food items more competitively from domestic as well as international markets through online buying. Online discounts offered by suppliers and innovative methods like open bidding and auctions also help deals go through.
Multinational perception:
Multinational perception was not too good to begin with but is now changing. LAI, Australia, after failing miserably in opening its first FEC in Bangalore in 1998 is vying for a pie of the 40 per cent market share in 400 new FECs in India by 2003. AMF Bowling is eyeing a major share too. Arihant Industrial Corporation Ltd, Mumbai, a pioneer in Waterslides manufacturing, is setting up India's first JV with M/s Soft Land, UK to manufacture Soft Play equipment in India. ERA and Oru Bose Consultants from USA frequent Bombay, Delhi, and Calcutta for consulting to new large projects like Essel World-Mumbai, Nalbandh-Calcutta and Unitech-Delhi.