The New World of Leisure & Entertainment

Mr. Karim Fayed

Head of Business Development AL OTHAIM LEISURE & TOURISM

The global pandemic has created a big surprise in the whole world. No one perceived its coming but came and stayed where nobody welcomed it. This has created a major hit in different industry sectors such as aviation, textile, luxury retail, real estate, travel & hospitality, shopping centres, retailers and events. Family Entertainment Centres (FEC) along with Cinema and Leisure & Entertainment have also been affected by the pandemic.

The Retail People Magazine had the opportunity to interview Karim Fayed, Head of Business Development, Al Othaim Leisure & Tourism – Gulf Region. Karim is a business-minded professional with over ten years of experience in the leisure industry and has contributed to Al Othaim’s success over the years. Karim generously shared some of his expertise to guide us on the current scenario of the FECs and how to maintain the company’s resilience during these challenging times.

How have your customer’s expectations been altered by the pandemic?

The utmost important point from the customer’s perspective is safety. Customers are very careful about going out and visiting family entertainment centres and make sure that safety measures are properly being implemented. Next, they are equally mindful about the value they can get with their money which involves considerable discounts, instant gifts, etc. while visiting an FEC. Customers make sure that their money is used wisely as almost every individual has been affected monetarily by the pandemic.

Has FECs been proactive in making changes to services and processes?

FECs have been proactive in incorporating the revised standard operating procedures with regards to health and safety, social distancing, staff training and more frequent sanitization processes. However, their capacities to operate have been reduced especially for play areas and trampoline as advised by local authorities. The staff and customers are being checked for their temperatures upon arrival at FECs and are requested to sanitize their hands at the cash counters and entrances. Other multiple hands sanitizing stations are placed all across the FECs. Before embarking on a ride, soft play, or trampoline, hand sanitization is required both upon entering and leaving the attraction. The staff sanitizes same attraction after its customers’ usage. Game machines are positioned at considerable distances to maintain social distancing while customers play games. Also, some of the multiplayer machines are operated on a single swiper to ensure the very same purpose. Birthday parties are still not conducted at our venues as per local authorities’ advise. What are the new trends the FECs should be aware of heading through 2021?

The FECs must follow the new norms of standard operating procedures during this unprecedented time of pandemic until the vaccine is sufficiently made available. FECs should be more cautious and wisely selective of their approach for new developments due to limited footfalls. FECs should look to minimize extra costs while ensuring a higher ROI and getting better commercial terms with developers regarding mall contributions for new developments or refurbishments as well as support in terms of rent conditions review.

How do developments in technology affect change in the industry?

As per global trends across various industries, the amusement industry is looking forward to reducing touch-points specifically on payment options like online recharge, self-service kiosk and In-app digital payments. From a gaming perspective, the FECs offer RFIDenabled wristbands for playing games through the Tap-N-Go concept or E-card/digital cards for gaming. Paperless redemption tickets have also been opted for by some of the FECs. Further explorations on more effective ways of communicating with the customers through the Mobile App will be helpful and enable easy use of information for products and services.

New major products that might make a major impact in 2021 are RFID- enabled cards or wristbands, self-service kiosks, online recharges and redemptions. These technology-driven products would provide a less touch-point experience for customers and more seamless payments and redemptions. However, if the vaccine will be available in 2021, we will see how customers will behave in getting back to a normal lifestyle with slight changes like frequent sanitization of hands.

What has the covid-19 pandemic taught you? I believe you have opened some stores during these times, can you share briefly?

Every business sector around the globe has been affected by the pandemic. However, we, at Al-Othaim Leisure, strive continuously to move forward. We have opened the new Fabyland which is located at Muscat Grand Mall in Oman offering 35,000 square feet of unlimited fun for families and children.

The recovery for the opportunity cost during the Year 2020 would take some time and may not be completely recovered in 2021. However, the key to making the industry a successful recovery will be to continue providing unforgettable great fun memories to customers in a safe and hygienic environment for maximum customer retention. This will be backed up by great customer service, customer engagement and continuous innovation in technology to enhance the products and services. Since travel will be restricted in 2021, the family entertainment centres should look at tapping on local clientele more effectively than relying on tourists.

AMMAR BELAL

CEO ONE432

When we launched ONE432 in April 2018, we were very much a shoe brand. Our product line consisted solely of embroidered and non-embroidered “Juttis” – our modern interpretation of the traditional South Asian shoe. Our “No left No right” slogan reinforced our positioning as a shoe brand, doubling up as a reference to our shoes being symmetrical, and our ethos of inclusiveness at a time when the US, and the world, was becoming increasingly divided.

Our company was built around the ethos that we need to challenge the status quo and tear down traditional systems and business models that have been unfair for so long that they had simply become accepted. Instead, we proposed that the fashion industry should tackle design and production as “1-4-3-2”, disrupting the conventional and established 1-2-3-4 approach. But our channel for change was always going to be through the design, production and sale of shoes.

And that was the script for the next two years. During this time, we developed a series of new styles - Juttis that looked like loafers, Juttis with tassels, Juttis inspired by bedroom slippers, and Juttis embroidered with a variety of motifs. People started writing about us, and over time, ONE432 gained a reputation as the company that made these crazy and modern Juttis.

Then, just as we had cemented our identity and started gaining momentum with online followers, we got thrown a curve-ball: Covid. Almost overnight, people around the world confined themselves to their homes, social activity around the world came to a grinding halt, and with it, the sale of shoes in general. Why buy shoes if all the walking you plan on doing is from one room in your apartment to the next? You can do that barefoot, or in your slippers. And with many people out of jobs, purchasing habits shifted to focus primarily on necessities instead of luxuries.

We had to do something, especially for our artisans, who earn a profit from each shoe sold. At a time when fashion companies were “becoming leaner” by reducing volumes and effectively putting millions of labourers out of work, we made a promise to our staff that their jobs and salaries would not be impacted – but to stay relevant we could no longer be just a shoe company. That’s when the “Essentials” line was born. Within days, we developed hoodies, t-shirts, face-masks and sweatshirts. Soon after, we developed slippers as well. Our focus shifted from luxury to everyday wear. The products were all still expertly designed and hand-crafted, but they served the need of the hour.

In the last 6 months, we have sold almost 10 times as many new products as shoes, and have transformed into a completely different company with the same ethos but a new product mix. It’s astounding to think that had not been for this terrible virus, we would still have just been selling shoes – because today we are so much more than just a footwear brand.