Professional Documents
Culture Documents
International Growth For The Concept of Children'S Edutainment: The Case of Kidzania
International Growth For The Concept of Children'S Edutainment: The Case of Kidzania
Argentina Soto-Maciel
A. Soto-Maciel (*)
Universidad Anáhuac México, Huixquilucan, Mexico
e-mail: argentina.soto@anahuac.mx
Introduction
In 1999, an innovative concept focusing on the edutainment of children
was created in Mexico and was denominated KidZania. Commercial
approval ensued rapidly and since then, its growth has been constant.
Currently, it has a presence in 19 countries through 24 locations, receives
more than 58 million visitors a year and has 11,000 associates. It is one of
the fastest growing brands of edutainment globally.
Since its inception, the greatest desire of its founder, Xavier López has
been to enter and develop its North American market: “We wanted to
enter as soon as possible, so that they do not copy the idea” (Palomino
2016). The reason is obvious, since this is the largest entertainment mar-
ket worldwide (50% of global participation), and the most competitive to
a variety of formats and participants. “So we set up an office, got a work
team, acquired a location in New York, started looking for partners and we
received investment proposals from Catterton Partners and Maveron”,
López noted (Mendoza 2018). Conversely, Howard Schultz (the founder
of Starbucks Coffee) told Xavier “If I were you, I would not touch it”
(Palomino 2016). And he gave up the idea. They closed the office and
suspended activities indefinitely. However, to what exactly was Howard
Schultz referring? When and how to enter the largest market in the world?
How to know it?
The KidZania founder and CEO was born in 1964, in a big and close
family. His father was a businessman engaged in different activities, such as
in the food industry and real estate. His mother was a homemaker who
raised seven children: he remembers a very happy childhood, surrounded
by brothers and cousins. When he was a child, his dream was to become a
magician and perform in nursing homes and orphanages. Since that time,
he enjoyed organizing everything, entertaining, and helping people. His
dream would become a reality in his profession. Later, opportunities led
the young entrepreneur to alternate his educational formation between
the US and Mexico: one year of high school in the US, a bachelor degree
and a master degree in basiness Administration in private Mexican institu-
tions. When he was only 20 years old, he had great responsibilities—his
father’s real estate company went bankrupt, and he was called to support
the family business and was charged with the responsibility of selling off
the majority of the properties to avoid larger losses. Later, he became
director of risk capital in a financial company. At this moment, one close
friend proposed to him a nursing project with Role-Playing Games (RPG),
INTERNATIONAL GROWTH FOR THE CONCEPT OF CHILDREN’S… 123
Context
Edutainment (education and entertainment) is content designed to edu-
cate and entertain. It is a non-formal educational situation, given that its
formative structure is flexible and not instructional (Ten 1998). Learning
focuses on the goal of empowering children. It is a methodology that is
increasingly recognized in today’s society. The majority of these produc-
tions have been produced through audio and video for their broadcast
through film, television, radio, and the Internet, although, traditionally,
games and toys are the best example. Toys within the context of imitation
or role play fulfill that central function, because they lead to the experi-
mentation of situations that would otherwise be impossible. The term
edutainment was first used in 1948 by The Walt Disney Company to refer
to the True Life Adventures series. At present, its use has been diversified
and specialized with the help of technology. Important international orga-
nizations such as the United Nations (UN), the Inter-American
Development Bank (IADB), and the Organisation for Economic
124 A. SOTO-MACIEL
1
An international non-profit association, its mission is to stimulate knowledge and profe-
sional growth, expand the size, diversity, and awareness of the themed entertainement indus-
try, facilitating dialogue and communication among its members.
Table 8.1 Top 10 theme park groups worldwide
Rank Group name % Attendance Attendance
Change 2016 2015
The Company
In the physical space (between 75,500 square feet and 5.2 acres), an entire
city is replicated to scale with buildings, streets, and squares. It has equip-
ment such as a hospital, a police station and a fire department, a supermar-
ket, a beauty salon, a radio station, and a theater, among other spaces. The
city plan is designed in several small thematic areas divided into sectors
(automotive, health, culture, education, industrial, environmental, media,
transport, retail, sports, etc.) that children explore independently. In it,
there are “establishments” that are spaces for role play and “facilities”
spaces for the consumption of food, beverages, and merchandise. Both
include already existing real-world concepts and brands.
Through ultra-realistic RPG, children play at being adults. The concept
involves them in the following: (1) learning the economic cycle; (2) teach-
ing the value of work, and (3) understanding the process of the exchange
of goods and services.
There is a currency of its own, KidZos, which makes it possible to rep-
licate monetary transactions, operating procedures, and security measures.
Children acquire a salary through a job and spend it for the acquisition of
goods and services as clients. As part of the entrance fee, the child receives
a quantity (50) of tickets in different denominations. With these, the child
can start spending in internal establishments, such as buying a pizza or
decorating their nails. Prices respond to the principle of supply and
demand. To acquire more money, children need a job. For this, they have
the possibility of exploring more than 100 professional careers (as fire-
fighters, police officers, fashion designers, construction workers, nurses,
etc.). The amount paid for a job varies, depending on supply and demand,
INTERNATIONAL GROWTH FOR THE CONCEPT OF CHILDREN’S… 129
The Issue
Sometime later, we met again. Howard Schultz insisted: “First, grow with
your brand in Mexico, then try it in another market... and in another.
Doing it in the U.S. too fast can break you” (Mendoza 2017). Although
the US is not the most attractive market compared to China, which has
350 million children, it is clear to Xavier López that this location ends up
legitimizing his concept in the industry.
INTERNATIONAL GROWTH FOR THE CONCEPT OF CHILDREN’S… 131
In the story of KidZania, the best growth prospects have been in the
international market. Their successful internationalization have depended
on two perspectives: the cultural and the legal. In the former, clarity is
needed in the host culture and the ability to tropicalize the concept. The
arrival of KidZania in Saudi Arabia implied the consideration of certain
significant cultural aspects, for example, the fact that the sexes are sepa-
rated from an early age, as well as almost exclusivity of the male to access
work activity. However, the opening of the brand surprised everybody
because we were not required to separate the girls from the boys; girls and
women were allowed to handle fire trucks and ambulances; in addition,
the girls will become familiar with other entertainment options such as the
dance and the theater. This theater is the only one in the country, as well
as the only public space with live music. The government desires to make
a social change and found in KidZania a subtle way to begin it. In the lat-
ter, it is important to find a good partner that is respectful of the contracts
and to develop a legal strategy, including penalties (Mendoza 2018).
Within this internationalization context, the franchise represents the
most viable strategy with the exception of the markets of Mexico and the
US. Continuous development in Mexico seeks it out through its own
financing and operation. For development in the US, look for a strategic
partnership. This is the main reference in the world, the market for the
largest entertainment platform in the world (50% of global participation),
awhile being the most competitive for formats and participants and for the
most sophisticated consumer. Potential development concerns between
12 and 16 centers. In addition, there is interest in developing the new
entertainment format based on exercise, health, and nutrition intended
for a wider audience; as well as an interactive website, given the strong
tendency toward the virtual experience; licenses and films, taking advantage
of intellectual property and brand positioning; expanding the merchandis-
ing portfolio; improving production; reducing costs, and increasing vol-
ume. KidZania currently has a specialized office in Hong Kong and a
catalog of 1000 SKU. Whatever the strategy, it is important to have a cata-
strophic scenario.
Despite the existence of several amusement parks around the world,
KidZania lacks direct competition. The massive development of American-
style theme parks is a concept entailing rapid assimilation in different coun-
tries. In some countries, such as France, it is recognized as the “theme park
industry” (Secall 2001). The concept represents a change in tourist supply
and consumption, its evolution is driven in terms of quality, innovation,
132 A. SOTO-MACIEL
The Decision
The growth that KidZania has had since its creation far exceeds the expec-
tations of its entrepreneur. The road has not been easy. Regarding the
work team, at present, it appears to be more solid, and some collaborators
have more than 15 years invested in learning and growing with the com-
pany. In terms of locations, L himself acknowledges “a lot of the countries
where we operate would have never known them for a simple personal
tourist interest ... I am proud to have the only Mexican company in those
places” (Palomino 2016). However, it recognizes that it has not yet
reached the goal that was set from the beginning. Much remains to be
internationalized and developed in the country itself; however, it needs to
establish itself in the North American market, compete with the larger
groups. Five of the top 10 theme park groups are North American, which
represent 55.7% of their market. The others are in China (three), the UK
and Spain. Concerning amusement/theme parks, there are 10 parks (three
parks in California and seven in Florida) with an expected attendance of
112.8 million annually and all of these are found within the top 25 world-
wide. The next places are occupied by Japan and South Korea, with four
and three parks, respectively. Six museums have an expected attendance of
34.4 million, all of these are among the top 20 museums worldwide and
represent 31.5% of their market. The following sites are occupied by the
UK and China, with four and three museums, respectively.
The internationalization of KidZania includes countries without the
previous presence of Mexican companies, such as Saudi Arabia, Kuwait,
Indonesia, and Japan, supporting the importance of the characteristics of
their markets.
INTERNATIONAL GROWTH FOR THE CONCEPT OF CHILDREN’S… 133
References
IAAPA. (2018). The International Association of Amusement Parks and
Attractions. Retrieved from http://www.iaapa.org/resources/by-park-type/
amusement-parks-and-attractions/industry-statistics
KidZania Official Site. (2018). Retrieved from http://www.kidzania.com
Mendoza, V. (2018). KidZania está lista para conquistar (por fin) Estados Unidos,
Forbes México. Retrieved from https://www.forbes.com.mx/kidzania-esta-
lista-para-conquistar-por-fin-estados-unidos/
Palomino, A. (2016). Exportando diversión al mundo con KidZania. Revista
PromoMagazine, 16, 28–31. Retrieved from http://www.promotexasmagazine.
com/xavier-lopez-ancona-exportando-diversion-al-mundo-con-kidzania/.
Rubin, J. (2016). Theme Index: The Global Attractions Attendance Report.
Themed Entertainment Association/Economics Research Associates. Retrieved
August, 21.
Rubin, J. (2017). TEA/AECOM 2016 Theme Index and Museum Index: The
Global Attractions Attendance Report. Themed Entertainment Association
(TEA).
Secall, R. E. (2001). Nuevo segmento emergente de turismo: los parques temáti-
cos. Cuadernos de Turismo, 7, 35–54.
Ten, A. (1998). Los nuevos paraísos. Historia y evolución de los parques temáti-
cos. Arbor, 160(629), 109.