KidZania to expand to Pune, Hyderabad, Chennai, Ahmedabad with Rs 400 cr capex

A global leader in interactive family entertainment and learning, Kidzania has launched its first toddler-centric play zone – ‘Kidzania Neighbourhood’ –in India, which started functioning from June 1, 2024. In conversation with Adgully, Rahul Dhamdhere, Chief Marketing Officer, KidZania India, speaks about the current scenario of the Indian edutainment and preschool/ childcare market, including the trends, challenges, opportunities in the market, the scope of the toddler zone, and the initiatives undertaken by Kidzania in the past one year. He also discusses the long-term brand vision of Kidzania and the strategies adopted by it for catering to young minds.

Could you share an overview of the present scenario of the Indian edutainment and pre-school/ childcare market? What are the trends, opportunities, and challenges in the same?

The Indian edutainment sector is definitely at a bright spot and is estimated to grow at a CAGR of 18 per cent to reach a valuation of $240 billion by 2026. Its growth is majorly driven by the country’s younger population which has an appetite for engaging learning methods like educational games, interactive simulations, role-play, and animated content. The National Education Policy (NEP) 2020 will also play a major role in experiential learning. These methods not only make learning fun but also improve knowledge retention. Hence parents are also equally invested in this.

The Indian education sector itself is expected to reach $313 billion by 2030, and the pre-schooling segment has a major role in boosting the same. The India pre-school/ childcare market which includes play areas and zones for children is witnessing phenomenal growth. We are looking at a projected market size of a whopping $7.7 billion by 2028, a significant jump from $3.8 billion in 2022. The demand for professional childcare is primarily driven by metro cities like Delhi, Mumbai, Bangalore, Hyderabad, and many other cities that are known to be an employment hub and draw a major segment of migrants across the country. With the growing recognition of the benefits of early education, parents are choosing high-quality preschools to guarantee the holistic growth of their kids.

A recent report indicated that the per capita monthly household expenditure in India more than doubled over the last decade. It also indicated that people's spendings are not limited to non-discretionary expenses only. Hence, in the coming years, the scope and opportunities for this market are immense.

However, with the proliferation of new centers, challenges like quality assurance in the absence of standardized regulations for training, teaching methodologies, or activity curricula may arise. Additionally, we need to bridge the gap between urban and rural areas, ensuring equitable access to quality childcare facilities across the nation.

What is the toddler zone launched by KidZania for the first time and its scope?

We launched our first toddler-centric zone called KidZania Neighbourhood in our Delhi NCR theme park in June this year. This will be the first of its kind in India, dedicated to kids aged between 1 and 4 years. It’s a miniature city with paved roads, battery-operated vehicles, buildings, a functioning economy, and its currency.

We have recently completed 10 years in India. Around 60 per cent of our visitors here are families who want the best for their children. Over the years, we have realized that the parents who visit KidZania with toddlers, want to connect with their kids in our way. Experiential learning not only helps strengthen familial bonds, but also helps parents to recognize the potential of their children. In KidZania, apart from fun and education, we focus on socialization skills as well, which make kids feel part of a community that can make the world a better place.

The initial years of a child’s life are very crucial when it comes to neurological and emotional growth. This is because their mental, emotional, and cognitive progress together with the overall brain development, depends on a powerful and loving relationship with the primary caregiver. It is also important to introduce children to unstructured learning in these years instead of our traditional rigid learning processes. Parents have understood this.

Could you share some initiatives by KidZania in the last year? What is the long-term vision of KidZania and what are the new strategies adopted by it to cater to young minds?

We run by the philosophy of ‘Get Ready for a Better World’ and are committed to providing fun learning experiences accessible to all children. Last year, for the third time, KidZania Mumbai hosted over 30,000 Brihanmumbai Municipal Corporation (BMC) school students across its 27 wards. We are happy that BMC put their faith in us and we also had an opportunity to help the students in their journey to spark their imaginations and gain skills that will serve them for a lifetime and looking forward to more such opportunities.

Our long-term vision is to prepare ‘the champions of our future’ through an experience that is hands-on, engaging, educational, and most importantly, entertaining. Aligning with our vision, we are excited to announce the upcoming launch of an aviation academy in KidZania Mumbai & Delhi NCR, in partnership with Air India. Furthermore, we are soon going to launch an MP Tourism Centre in collaboration with the Madhya Pradesh Government. The initiative is a testament to our commitment to education, exploration, and responsible tourism. Through this partnership, we aim to introduce and transport kids to the rich cultural, ecological, and geographical heritage of Madhya Pradesh.

Moreover, we are actively pursuing partnerships with technology-equipped brands to give children opportunities to explore advanced areas like Artificial Intelligence, Machine Learning, and Virtual Reality.

These programs are designed to let children learn the skills and knowledge necessary for them to progress in a dynamic world. We are most delighted to start these journeys with all of you and hope you will be part of our drive for a better future.

What is the impact that KidZania is having on young minds and how does it help them in their future to contribute to the world around them?

We believe we can help promote change, inspire global citizenship, and establish strong community consciousness among our children.

We are a platform where we provide fun-filled immersive and experiential learning experiences to children. Our philosophy of ‘Get Ready for a Better World’ reflects our commitment to nurture children in an environment through which they can leave a positive impact on society tomorrow by blending reality with entertainment. In KidZania, we provide children with an environment to think freely and do whatever comes to them naturally. Through our role-play activities, we introduce and expose kids to real-world problems to get a sense of the adult world and how it functions. Here kids explore everything – from driving a car to flying an airplane, from making pizza to chocolate, becoming a firefighter to a dentist, everything at once.

The hands-on approach stimulates curiosity and encourages exploration. It enhances a child's ability of problem-solving and critical thinking. These experiences also often involve collaboration and teamwork. Children can develop communication skills, empathy, and leadership qualities through these activities. Children learn to analyze situations, make connections, and solve problems effectively. Moreover, Social and Emotional Learning (SEL) programs improve academic performance, social skills, emotional well-being, and attitudes toward school as well.  Basically, in our city, we encourage children to learn and develop autonomy, creativity, problem-solving, decision-making, and social values in an environment without the distraction of rides and video games.

What is the marketing and media mix strategy of KidZania? What are the marketing activities, and campaigns launched by it this year?

When it comes to media mix, we mainly focus on digital channels supported by print ads and radio. Out-of-home (OOH) advertising is something that we are focusing on in our upcoming campaigns too.

We also have various marketing activities which we run as per the season. Our Summer Mania is currently going on which we plan between April and June. Apart from that we have Diwali celebrations in October and November and the Winter Carnival in December and January. These are the main campaigns of our financial year. Additionally, we are also gearing up for the launch of KidZania Neighbourhood, the Aviation Academy in collaboration with Air India, and the MP Tourism Centre.

How was the year 2023 for KidZania and what are the upcoming projects, growth projections, and expansion plans for 2024?

Overall, 2023 was a successful year for us. However, it also presented a unique challenge. In the immediate years post-pandemic, we witnessed revenge spending and outings, but people were also hesitant to go far. Hence, they were exploring nearby malls and other commercial areas. However, in the year 2023, people gained confidence and their preference shifted to exploring destinations further afield instead of exploring the malls and commercial hubs.

Our growth projection for this year stands at 10-12% as compared to 2023.

In terms of expansion, on our radar, there are five locations, and Bangalore is on top of it. Eventually, we are planning to expand our footfall to Pune, Hyderabad, Chennai, and Ahmedabad with a capex of Rs 400 crore. Our vision extends to positioning India as the largest market for KidZania globally within the next 8-10 years, surpassing even Mexico, which currently boasts four centers. In terms of footfall, KidZania India is already one of the major contributors to the global numbers alongside Japan.

However, while discussing our expansion plans, it is worth mentioning that securing adequate space remains a key hurdle in realizing our goal of offering a full city experience. Currently, our facilities in Delhi and Mumbai occupy 100,000 and 70,000 square feet, respectively. Once we secure sufficient space at convenient locations, we will be well-equipped to continue providing immersive experiences for children across India.

What are the ad spends and market share of KidZania this year, and how is KidZania different from other edutainment platforms?

KidZania’s unique blend of reality and entertainment sets us apart. While our approach is undoubtedly fun-filled, our underlying motive is to educate children about the adult world they will soon be part of. Unlike relying solely on rides or video games, we prioritize immersive experiences designed to expand children’s imaginations.

Each activity within KidZania is meticulously crafted by educationalists, play experts, and child psychologists. These activities aim to enhance various behavioral skills and instill important values in children. Moreover, we integrate elements of the economy into our role-play activities, allowing children to learn about earning, spending, and saving. This emphasis on financial literacy distinguishes us from other platforms, reinforcing our commitment to holistic child development.

How are experiential learning platforms being leveraged by brands as a marketing tool?

The market is highly competitive today and brands are in constant search of new avenues to connect with their consumers and forge an everlasting relationship. Unlike other traditional advertising channels, which may or may not reach the target group, experiential learning platforms have a set group of audience which are eager to learn, immerse, and interact with a particular brand. Since the consumers spend a good amount of time interacting, the brands also get an opportunity with no additional cost to educate customers about their existing and new products with a hands-on approach.

Furthermore, experiential learning also fosters a sense of community among the participants. The more amount of time they spend with the brand the chances of ToM increase and it expands the horizon of new customers as well. When brands specifically engage with younger audiences, they create brand loyalty with their potential customers at a very young age.

How important is educational entertainment or edutainment in the current times and what role does interactive learning play in developing and shaping young minds?

The introduction of edutainment or experiential learning in education design has been of great significance to the educational system at present. Recognizing its importance, the Government of India formulated the National Education Policy (NEP) 2020, which plays a major role in experiential learning.

It is important to understand that different children have different styles of learning and experiential learning can be a game changer for those who thrive on physical learning. By stepping into different shoes through role-play activities, children learn the importance of real-world scenarios like how police ensure safety and security, how visiting a bank for financial work, how a Surgeon operates, how a pilot flies an Aircraft, and so on.

One of the key benefits of experiential learning is its positive impact on motor skills. Both fine and gross motor skills, essential for physical coordination and dexterity, are significantly enhanced through experiential activities involving physical movement and object manipulation.

Furthermore, a recent report by the World Economic Forum highlighted that a child entering primary school in recent years is likely to occupy 65% of jobs that do not yet exist.  This underscores the importance of an education system that fosters critical thinking, problem-solving, creativity, and collaboration – all of which are central to experiential learning.

Also Read : How Marketing Trends align with shifting customer preferences in Edutainment