 From left: Angel Tang,Victor Mao, Archer Sun and Peter Tang are the first to open a Gymboree franchise on the Chinese mainland. |
Shanghai Daily news
Toddlers in high spirits are singing and dancing away, and even babies-in-arms are mesmerized, chortling at the sounds and the sights of the Gymboree Music Festival.
Shanghai's first international children's music carnival was in full swing inside Times Square in Pudong last weekend. In the crowd, a cheerful young lady is playing with the children.
This is Hong Kong native Angel Tang, who will launch a Gymboree franchise center at Ascendas Plaza in Xuhui District in October. Tang and five other franchisees have become the first group to acquire franchising rights from Shanghai Gymboree Co Ltd, Gymboree's China headquarters and master franchiser.
Founded in the United States in 1976, Gymboree, the world's leading program in early childhood development, was designed by renowned American children psychologists. Gymboree's music, art and play programs, for newborns to five year olds, are all held within a happy playground environment. The philosophy behind Gymboree, which comes through in every class, is that a happy, fun environment maximizes children's developmental potential.
Today, there are Gymboree franchises in more than 700 educational centers in over 25 countries across Europe, the U.S. and Asia. Every day, 30,000 families around the globe enjoy the programs offered by Gymboree. Taking advantage of the positive associations of its brand name, Gymboree has also expanded into children's clothes and toys as well.
In 2003, Shanghai Gymboree opened its first education center in Gubei, Changning District. A second center was established in Pudong in 2003, also by Shanghai Gymboree. At present, active members at the two centers reach more than 1,200. Members usually sign up for a package of a minimum of 12 classes. Forty percent of the members are expatriates, while the rest are local Chinese.
Tang will operate her Gymboree center with her Singaporean partner Lorraine Tham in the city, while the other four franchise partners are looking to expand into Beijing and Suzhou in Jiangsu Province.
The franchisees are all well-educated, well-employed individuals, many with overseas living experience. Tang, for example, obtained a master's degree in management science in the United Kingdom before returning to Hong Kong, where she pursued a promising career as a business analyst with Goldman Sachs Asia investment bank.
Yet Tang -- indeed, all the investors -- claim to be unmotivated by profit.
``To be frank, we're not business oriented,'' explains the soft-spoken Tang. ``Our mission is for every child to grow happily in a healthy, clean and safe environment.''
Tang's motivations inspired her to leave Goldman Sachs after just three years to embark on her own China adventure. She came last August because she sensed ``great potential here.'' Her first six months were spent studying Mandarin at Fudan University before turning to her real passion: setting up a child-related business.
``I may not have a child myself, but I love children very much and love to be surrounded by them,'' she smiles. ``Setting up a preschool education center is my all time dream.''
Her best friend from university, Tham, could not have agreed more. Despite a hectic schedule as marketing communications and brand consulting specialist at Publicis, the French advertising giant, Tham found the time to organize birthday parties and events for children. After years of being a strategic planner, she was beginning to feel that it was time to expand her horizons and do something totally different.
Early this year, Shanghai Gymboree began launching franchise offers on its Website (www.gymboree.com.cn). They offer three categories of franchise models: flagship, luxury and standard center, with investments ranging between 1.3 million yuan (US$156,000) to 2.6 million yuan, plus the initial franchise fee between 160,000 yuan and 300,000 yuan. The first five franchisers have all chosen the luxury model for their centers, and in addition to the franchise fee, they will pay 8 percent of their monthly sales to Shanghai Gymboree.
Tang and Tham did their own research on the market for early childhood development products in China and decided that the time was right.
``I want to be part of this brand (Gymboree),'' says the 28-year-old Tham. ``We bring love, fun and learning to every child and parent. Isn't this great?''
For most of other franchisees, their reasons for hitching up with the Gymboree bandwagon are more personal: Their own children have benefited a great deal from Gymboree classes.
``My older son, Colin who's now six and half years old, attended Gymboree Play class in the United States every weekend from the age of one and a half until four,'' says Victor Mao, who has a master's degree in computer science from Stanford University and has left his position as product marketing manager at Intel in California, which he held for over eight years. ``My son just loves freestyle play and learning activities and has learned so many techniques in approaching and adapting to his social environment.''
Mao and his wife are strong advocates of parental involvement in early childhood education as they believe a parent's quality time with their child is essential in developing a happy, self-confident, secure and motivated child. He also has a great interest in early childhood education and he determined to relocate his career back to China, where, like Tang, he sees ``great opportunities.''
Like Mao, Stephen Shen from Hong Kong who has been living in Shanghai for almost 10 years has two children in Gymboree classes in the city.
``Every day my kids ask: `Mom, are we going to Gymboree today'?'' laughs Shen's wife Yvonne Kam.
Shen, along with his long-time colleague and friend Archer Sun, will open the Suzhou Gymboree franchise.
In order to cater more to Chinese market, a small proportion of Gymboree classes have been adapted into the Chinese language, which will be launched in September.
``I expect the proportion between expat and local Chinese members will shift to two to eight when Gymboree has a sound base in China,'' says Nick Shiah, general manager of Shanghai Gymboree.
But will China's local population bite? As one of Shanghai's first imported professional early childhood development program, Gymboree is pricing itself like an import -- one 45-minute Gymboree class costs more than 230 yuan, well above local counterparts which can cost less than 100 yuan. And Shanghai Gymboree has already discovered that some local counterparts are copying their teaching equipment and even decor.
But cost may not be an issue for Shanghai's well-heeled middle class. According to Shiah, most of their local Chinese members come from well-off families, either senior white-collar workers or businessmen.
In addition, there is the cachet of the import. ``All our programs and equipment are imported from the United States,'' Shiah explains.
``When it comes to value for money, Gymboree in China is actually a good deal,'' agrees Peter Tang, who will open his Gymboree franchise center in Beijing.
His franchise center in Beijing has an excellent location in the downtown area on Jianguomenwai Avenue and an investment of more than 4 million yuan.
``I want my customers believe that what we offer is worth every penny of what they have paid,'' he continues. ``But my most important goal is for children in China to enjoy an international educational method without having to travel abroad.''
As to whether the market will develop into a dynamic one, one should listen to the experts: the parents.
``Early childhood education is a hot topic among parents nowadays,'' says Cathy Chen, who participated in the Gymboree Music Festival with her 2-year-old son. ``What we care most about is the program's quality. This explains why so many parents struggle to send their children to kindergartens with good reputations.''
Perhaps more importantly, one should listen to Gymboree members.
``Gymboree has created a fantastic international communication environment for my child,'' says Filipina Stephanie Chan, mother of Lara Chan, another Shanghai Gymboree member. ``Lara's communication skills have improved so much, and she knows how to approach kids from different countries.''
Even new parents, Amy Xu, who had her first child in June, are convinced of the value of early childhood education. ``I think it well worthwhile to spend more than 800 yuan a month on my child's education. Just consider the endless benefits for his future,'' she says.
