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Four Cardinal Principles of Investing Recreation and Entertainment Places
Date:12/10/2012 7:30:24 PM

A Brief Introduction to the Author ----- Lin Feng

Lin Feng, chief planning supervisor and investment management consultant of Shenzhen Hefeng Recreational Planning Co., Ltd. (hereafter referred as Hefeng). Hefeng is a professional training marketing company of amusement places and supplier of research and development of carnival and booths games. With 19 years’ experience in entertainment venue operating, over 70 amusement brands were planned, more than 200 managing course held, more than 1 million sales achieved and 400 plus booths games designed.

Era of brand competition

China has now come to the Era of brand competition. It’s no longer easy to earn hundreds of thousand yuan every month simply with a game center of dozens of square meters and equipped with a few connecting game machines or assembled game machines. According to the situation analysis of the market, no matter machine manufacturing or venue operating, all depends on the competition of brand value and brand potential.  That’s the turning point of Chinese economy and it can not be changed by individual and requires the industry to adapt to it.

Investment: Innovative thinking needed

Based on the current situation and planning, investing in amusement venues needs to develop large, high-grade and connotative amusement venues including video game hall, animation hall, amusement center, children’s park and theme park and so on. Those amusement venues exactly reflect a kind of theme entertainment, core value of amusement, a breakthrough of tradition and a kind of recreational culture.  

Space Design: Simple & Unadorned

Designs of many amusement places are bulky with separated mould, which is lack of creation and is going far away from the market needs. It not only adds the cost of investors, embodies a sense of irresponsibility, but also breaks away from using value of operational managements. Investors should establish its own creative mode which needs to be bold enough and reduce investment in decoration and ordinary maintenance cost. Besides, investors should also insist on simplicity culture emphasize on the three elements of light, color and shape. 

Project Planning: Suitable for use

Game machine planning is not just about booking a machine, but realizing interaction of different games and reducing repeat games and similar machines. Planning is also not a floor plan of game machines but the combination of operational needs and budget. Purchasing should be combined with sales promotion and aimed to meet the needs of customers. Planning is not only a matter of buying and the key point is to think about how to manage it well and pack it well. Besides, game planning projects shouldn’t be too many but those projects should be evaluated through planning and management concept.

Management Ideas: No Experts in Managing Recreation and Entertainment Places

Recreation and Entertainment Place is a specific industry and management ideas should firstly confirm to the government policy and local market’s demand. We should not always believe what big manufactures said, and can not do as other places did. Why? Main reasons include: scale cannot represent quality; large quantity of venues can’t guarantee elites; profit and loss data needs to be considered. It is possible to learn from other venues but unfeasible to copy or imitate. To reach the effect you expected and wanted would be the largest investment characteristic. No characteristic means no competitiveness and no development ability.

Profit comes from good project and operational capability. But in terms of sales promotion, we should not be too utopian but fight with customers’ concept consume. All the investors want to make money. But how to stimulate customers to consume? That’s really a big problem worthy to think about. Every investor wants to make profit. The most important thing is that management is about team which needs training.

Four Cardinal Principles of Investing Recreation and Entertainment Places:

1. Get rid of the traditional ideas and take creative and free ideas as the basic planning principle.

2. Say no to gaming machines and take learning incentive mechanism as a basic marketing principle.

3. Establish pushing mechanism and take standardizing performance appraisals as a basic training principle.

4. Seek development opportunities in the unfavorable managing environment and take promoting operation with best service as a basic brand principle.

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