Timezone has a time honoured format but is ahead of the games industry in every important respect, offering value for each dollar the customer spends.
Timezone is a part of the LAI Group of Companies of Australia, which runs its own R&D facility and is involved in software development, manufacturing, distribution and operating over 200 family entertainment centres across seven countries. LAI, founded in Perth in 1958, is responsible for some of the hottest and most innovative games on the market. LAI is one of the few companies in this industry that enjoys complete vertical integration.
Timezone is the arm of the LAI business that is directly connected with the consumer. Games manufactured by LAI account for about 10 per cent of the space in a Timezone centre. “Being a part of LAI, we give preference to our own games; however we also house games from leading manufacturers all around the world. We are in the interactive entertainment business—we need to constantly look out for new concepts and products to entertain our consumers,” says Timezone Group CEO Sonaal Chopra. “If the consumer likes it we buy more of it—if not, we don’t. We source games from Japan, Korea, Thailand, Taiwan, America, Europe and China, to name a few.”
Timezone started life in Australia in 1978, subsequently spreading from 1995 onward to a number of Asian markets. Today it is present in India, Singapore, the Philippines, Vietnam, Indonesia, Australia and New Zealand. All Timezone stores are company-owned, except in Australia where the majority are franchised, and Vietnam which operates under a master franchise system. Right from the start the group was conceived as a family oriented amusement facility, a concept that was well ahead of the trend at the time, and one it has retained and developed since. In Singapore, where Chopra is based, Timezone has become the leader in the interactive games industry with 16 outlets around the island.
Altogether there are now 229 Timezone stores, though the number is increasing all the time and the first half of 2011 alone has seen nine new locations added. These vary in size from 600 to 6,000 square metres, and a lot of thought goes into exactly where they are located, says Chopra. “We like to be at the centre of where people go to do their shopping and to have fun, so malls and high street locations are a favourite.” They all share a family-friendly ambience though, with an upmarket feel, bright, colourful, comfortable, and targeted at the increasingly growing middle class sections of society in these economies.
The gaming, entertainment and amusement industries in the US and Europe have all been affected by the austerity measures these countries are having to adopt, says Chopra, with a few businesses retrenching or going into receivership. The very fact of being in Asia has helped cushion the effects of the global downturn on Timezone as a whole he says, and he explains why. “I can’t deny the recession has had some impact on disposable income, but fortunately the effect on our business has been minimal—that’s partly because of the higher growth that has been sustained in Asia over this period, but mainly it’s because of the strong element of customer value that we offer. It is like watching the movies: if the movie is good everybody goes to see it, even in a recession!” If you can maintain the content and the value proposition the business will prosper, he insists.
At present, though, Timezone has limited intention of expanding into any other countries—it has plenty of room to expand its footprint in the territories where it is already established. India in particular offers an unlimited market. “Our hands are full at the moment in Indonesia and India among other existing markets, where we have plenty of room for organic growth. So we will continue to open stores as the need arises and also consider acquisitions as we did in Singapore in 2008.”
That was the year in which Timezone bought the E-Zone group of companies, which operated six amusement outlets. “E-Zone was a sizable player in Singapore and the acquisition gave us the economies of scale we were looking for.” The outlets were renovated and rebranded, the games upgraded, and they were equipped with Timezone’s unique Powercard system.
Powercard, developed by Embed, a sister company within the LAI group, combines sophisticated data capture with a cashless payment system and value-added guest loyalty programmes. “The advantage of the card to the customers is that it is less of a hassle than carrying coins in their pocket, and they like to avail themselves of the many benefits the card gives them,” says Chopra. These include prizes, bonuses and special offers; and being able to use the card in any part of the country gives flexibility to the consumer. “They’d hate it if we were to stop having the Powercard,” he adds. “And from Timezone’s point of view it helps to make management information systems and reporting more streamlined and robust. You find out the likes and dislikes of the consumer and it aids marketing and improving the service.”
From its inception, Timezone’s unique selling point has been its family focus and its up-to-date, well maintained games, as well as its ability to add tangible value. As consumers have become more value conscious, they have naturally gravitated to this model, shifting to activities that give them prizes or tickets, or allow them to get more value. That’s been the biggest trend in recent years, says Chopra; but the popularity of the internet has been almost as important. “We are capitalising on links with the virtual world, and moving quickly towards creating a point of difference there.”
Far from taking the customers away, the fact that people spend more time on the internet can work in favour of the business, he believes: his vision is to encourage access and interaction on any browser platform to back up the key social side of the business which can only be accessed by physically visiting a Timezone centre. “It’s like having a meal out. Every home has a kitchen but people still go out for a meal!” www.timezonegames.com
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