The rewarding business of developing smart, confident kids

MANILA, Philippines - Asians, including Filipinos, invest signifi- cantly to prepare their children for a brighter future. According to a recent study on spending priorities in the Asia-Pacific, respondents from 16 countries spent not just on the basic school- ing of their children but also on enrichment classes. The Mastercard consumer survey fur- ther pointed out that two thirds of respondents apportion 14 percent of their monthly house- hold income on their children’s education.

Does that kind of spending make any sense? Ann Tan, managing director of Gymboree Philippines, believes it does. Gymboree is the global leader in classes for kids. “New research shows that brain development is influenced by what a child experiences more than previously realized. The activities that engage a young child influence what kind of learner he will be for the rest of his life.”

Among affluent Filipino families, the quest of parents to raise a brighter, more confident child has given rise to nine Gymboree centers in Metro Manila, two in Cebu and one in General Santos — and more in the pipeline. A growing number of parents bring their children to the Gymboree locations to receive instructions dur- ing 45 minute sessions over several weeks on how to play variations of peek-a-boo and other physical exercises that ensure the youngsters achieve intellectual, social and physical devel- opmental milestones appropriate for their age.

“Parents who come to Gymboree want to maximize learning opportunities for their chil- dren,” observes Tan. After all, studies show that 85 percent of the core structures of the brain are formed by age three. More specifically, a baby is born with billions of brain cells. The synapses or connections between cells or neurons grow rapidly soon after birth and lay the foundations for future learning. The synapses could be likened to the “wiring” of the brain, says Tan. At age two, the synapses rapidly double in     number.  Up to  age  10, those        continually stimulated by experience grow and those that are not stimulated, wither. Experience is thus very important to a child’s future.

Tan observes that parents these days are more focused than older generations of parents on find- ing classes and other ways to boost their child’s intelligence and creativity. In fact, many of them view the P3,600 to P21,000 they spend per child per month on a Gymboree program as a priority item on the budget. A number of these parents get so involved in the program that they eventually

put up their own centers near where they live in order to share the experience to their community. Almost all Gymboree franchise owners today began as participants or had a niece or nephew who participated in the program.

A business model that allows personal as well as monetary rewards, Gymboree is best suited for entrepreneurs with a passion to nurture young minds. What differentiates Gymboree further from other educational franchises is that it uses play as a tool for development. “At Gymboree, we intentionally use play to help children master their skills, conquer their fears to try new tasks, build language and social skills while practicing adult roles,” says Tan. It is thus a  brand that children naturally love since Gymboree time is also fun time with mom or dad.

Named in 2013 by Entrepreneur magazine as one of the Philippines’ outstanding franchise companies, Gymboree is now set to expand to other key cities of the Philippines. Tan ob- serves that independent commercial centers, hotels, clubs and resorts are showing interest in incorporating Gymboree centers. While most locations are in malls near upscale residential areas, a Cebu franchisor set up an outlet in Parklane Hotel near the Cebu Business Park.

Many hospitality establishments realize that if they want to attract families, they need to have facilities for children, according to Tan. Rather than manage these facilities themselves, some have discovered that outsourcing such a facility to Gymboree is the more efficient route. Rockwell Club in Makati has likewise incorpo- rated a Gymboree site in a bid to attract young families throughout the year. Smaller commer- cial centers are also bringing in Gymboree as an anchor to attract young families and complete the “mall” experience.

As in its other, Tan expects these two new non-traditional Gymboree locations to grow via word of mouth and referrals. She adds that the usual payback period for a Gymboree franchise is two to three years — an unusual feat for an educational institution. After the equipment is paid back, cash flows become profits and dramatically increase.

To successfully run a Gymboree center, however, the key ingredient is to have franchi- sors and personnel passionate about nurtur- ing and relating to children, according to Tan. Philippine culture, which remains child-centric, does not lack for these kinds of personnel and entrepreneurs, she says.