Why SMAAASH is Betting Big on Phygital Experience

The world is recovering from the post-Covid effects and service providers are required to understand the changing consumer behavior. The period of the pandemic changed the work mode, travel and daily routine went haywire, with more digital communication, and online shopping. Humans are adaptive to changes, no matter how many digital avenues have come up to make our lives swift sitting at home and getting our things done, but a consumer is looking forward to enjoying a break and exploring unwinding opportunities physically more than ever. 

Recently,  SMAAASH - one of India's acclaimed gaming and entertainment centers that blends sports, virtual reality, music, and dining into an immersive, evolved, interactive, and innovative social experience for family, friends, and children alike - has observed that people are yearning for physical activity - starting with bonding, meeting old friends/ family/ colleagues in new settings. They are exhibiting bolder behavior in trying to search out and adopt new hangouts which can address their social needs and get back to the pre-WFH days. 

Elaborating on the changes that SMAAASH has introduced to match the changing needs of the consumers, Shirish Kotmire, CEO, SMAAASH Entertainment Pvt Ltd, “At SMAAASH, we have a new gaming mix that addresses the competitive (bowling, cricket, etc), thrill (VR - RollerCoaster, Dinocoaster, Drop Tower as also Physical Bungee Jumping, Multi-Activity Tower, Donut Slide, etc), skills (WildWild West-Shooting, 2-Wheeler, and 4-Wheeler Simulated Racing, etc), and greed (redemption at higher percentage gifting driven games across kids and young adults) needs. We offer consumers a calibrated experience across various options and are trying to increase their dwell time at our centers to above 2 hours. We are moving away from an only-kids-centric format to a more adult-centric format - by presenting a wholesome programmed entertainment experience for young adult groups. Our design team has created a carefully curated relaxed ambiance with state-of-the-art lighting and decor options so that the space offers relief from stress and increases encourages social interaction.”

“We believe that Phygital is the future, it enhances a customer’s experience and satiates their expectations as it perfectly bridges the gap between the physical world and the digital,” he further added.

Leading the Phygital experience is the SMAAASH innovation - the 360-degree cricket simulators which blend the real-life cricket batting experience along with the aura of facing the best bowlers in the world. The real-life experience of facing the best cricketing icons, coming out and hitting them out of the park, or getting bowled in the process is an out-of-the-world experience altogether. At SMAAASH, these cricket simulators are not seen as just a game, but also help bring the dreams of a cricket fan to life. 

Apart from this, SMAAASH has upped the ante by expanding its R&D infrastructure by setting up 3 more game concept development centers across the country. All 4 innovation centers are tasked with creating a surreal but enjoyable Phygital experience, with specifically targeted consumer reactions of surprise, disbelief, and wonder. They address different technology options to create new games and develop them to the next level by adding a sense of uniqueness and unparalleled guest experience, hooking them onto coming in for the same experience again and again.

“A new area for SMAAASH will be addressing the edutainment space with a Phygital experience – this is in a stealth mode currently, but watch this space closely and you will be surprised at our creations,” asserted Kotmire.

Marrying Tech with the Brand

Games at SMAAASH are state of the art, made using only the latest in technology to give its users an everlasting and unforgettable experience. It innovated with flagship games like Bowling and Cricket Simulators and these have developed the highest traction over a period of time. However, now SMAAASH has gone beyond these and is now targeting more hitherto pre-existing but unexplored terrains like Shooting, Archery, and White-River Rafting amongst others. Boat VR is a unique game where guests sit in a real kayak and can row their way across real-life but difficult white-river rafting conditions with surging water and boulders strewn across their way.  

“Another example in point where we have outgrown the height restrictions at most of our malls by developing a drop tower enhanced by an Oculus-handset led VR experience of heights.  The same feeling of soaring up a 40-feet drop tower at the best amusement parks in the world is delivered right here at our center at the WTP Mall in Jaipur, thoroughly enjoyed by guests across kids and young adults too,” he stated.

“Unique Shootout format is being developed within a 10-feet shooting range with real goggles, real shooting vests, real guns on single and multiple shot settings – using this you can experience real recoil thudding into your shoulders and check if you have hit virtual targets with plastic bullets.  Both these games are up for grabs at our newest center in Radisson Blu, Dwarka, Delhi which opened in April 2022,” he further added.

Future Plans

Going ahead, the brand is planning to expand into geographies that have a high density of growing families, with a large proportion of teens as well as independent young working professionals and it generates organic and sustainable footfalls at its centers and build a premium experience for these consumers.

“At SMAAASH, we plan to add more than 20 centers within the next six months in a carefully thought out expansion plan with firm execution timelines, given our large capital expenditure requirements. We are planning to amplify our retail presence across the adult-centric hubs in the country – across metros, mini-metros as well as Tier II/ III cities. We have already signed up more than 16 properties across the country. We are following a mixed policy of making expansions in metro and mini metro cities of India in order to attract a larger customer base to accelerate our changed positioning and metamorphosis into an adult-centric and lifestyle format.  We will continue to ensure that it is the most happening place where friends become family and family become friends, offering an unparalleled experience from a wide variety of games, to delicacies, and lastly a fulfilled atmosphere,” he elaborated.

“We are closing the geography gaps and driving depth within a city by increasing our number of outlets and address fast-growing population groups eg. in Noida, we are growing from 1 outlet to 4 outlets, in Gurugram from 2 outlets to 5 outlets and in Delhi from 1 to 4 outlets. Similarly, the expansion across affluent states like Punjab, and Rajasthan continue with our presence increasing to 10 stores in these states. In the West and South, we are expanding into newer locations in Mumbai, Hyderabad, and Bengaluru. We also plan to focus on developing cities like Mangalore, Madurai, Raipur, Vijaywada, and Bhubaneshwar where we are already present,” he further added.

At present, the brand is generating Rs 4.5 crore of EBIDTA month after month and it will just increase – and it will continue to use internal funds and accruals to revamp existing stores as well as build new centers in a very judicious and cost-effective manner. 

“With our explosive growth in revenue and trading density in the last 2 months, in certain marquee projects, we are exploring innovative ways of partnering with key real-estate developers. For new mall developers, given the changed diaspora and adult-centric behavior, we are emerging as a footfall generator along with multiplexes and food courts. SMAAASH is emerging as a 3rd mandatory option that completes the wholesome experience,” he stated. 

“On the revenue front, the current efforts are to ensure a same-store revenue growth of minimum 10 percent month after and looking forward to beginning fundraising in 6 months from now. Our investors are quite upbeat about the progress we have made, but we need to expand aggressively to improve that confidence and all our efforts are in that direction. In the future we need good investors with us who can understand our vision and support us as we are shifting our focus to a more lifestyle and adult-centric positioning, which requires serious commitments and deliverables,” he added.