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SUMMARY VIDEO

COMPANY DETAILS

Summary

Bobo is a retail entertainment and F&B vending machine company, they are currently fundraising to increase their revenue streams such as the development of smartphone software games, and import & distribution of Global Coin-Op arcade games. Eventually, they want to set up arcade centers in different shopping malls and hypermarkets

Bobo wants to build the next-gen entertainment hub by combining online experience with the offline centers/machine

Problem

Bobo is attempting to provide healthier entertainment alternatives to the younger population within the region. The primary pain point is the deterioration of mental health amongst Malaysians, as reported by National Health and Morbidity Survey in 2019. The survey also shows that 100,000 adults in Malaysia currently used drugs and the majority of drug users started drug use between the ages of 18 – 24 years. Another serious issue is the harmful use of alcohol in Malaysia; 11.8% of Malaysians drink alcohol, with 50% of those population engaging in binge drinking.

Believing that the prevention of these social issues namely alcoholism, drug abuse and mental illness has to start from young, Bobo intends to provide a healthy entertainment space (omnichannel) for the youth to spend their past time.

Solution

The solution to prevent the mental issue, alcoholism and drug abuse among youths is to provide healthy entertainment alternatives such as vending machines and arcade centers. We intend to build a youth community using both arcade centers and mobile app technology for their social networking, whereas activities done within these centers will be monitored closely.

The entertainment vending machines and arcade centers will be supported by a mobile application which has membership loyalty programs and provides interactive platform for its users.

Product
Offline Aspects

Bobo offers cutting-edge claw machines (entertainment) and cotton candy/latte machines (F&B), which would be set up in malls. Youths are able to easily access these machines instead of succumbing to prevalent unhealthy activities.

We carefully curate the fun and engaging machines for the customers, including claw machines and different arcade games.

Bobo will also intend to set up arcade centers, which combine the latest gaming and youth trends to attract customers. This is to adapt to the demand of customers and become a place where the youth want to spend time at. 

Online Community & Engagement

In the future, Bobo wants to develop a mobile app technology that provides an omnichannel gaming experience for its users. The mobile app is built to increase engagement of the customers online, as well as an increased revenue model for Bobo.

Traction

Currently, it has built 13 outlets with vending machines in locations such as Sunway Pyramid, Genting Highland, Sky Avenue, Econsave Cash & Carry and Jaya Shopping Center.

To date, it has achieved RM 57K sales for the period between 15 January 2021 and 31 March 2022.

Moving forward, it plans to open its first arcade, launch its mobile app and achieve over RM 5 mil sales in the first year after the end of the fundraising.

Customers

The current customers for the F&B machines are people of all ages; whereas for the entertainment machines and arcade centers, it would be children and youths. With the rise of the younger population, it would directly expedite the growth of the company. Bobo has plans to increase its number of vending machines by importing overseas and developing its own smartphone gaming app to acquire more customers.

Business Model

Bobo's business goal is to become the market leader in the SEA gaming industry which includes vending machines, coin-op arcades and smartphone games. They are currently only operating vending machines but they have a solid business plan to also penetrate the smartphone gaming industry which is growing rapidly. Furthermore, the new products which would be offered to the market would be imported global coin-op arcade games, and the marketing for its products would be via social media and word of mouth.

Its revenue streams include:-

  1. Sale from claw machine and F&B vending machine
  2. Arcade center revenue
  3. Advertising income (future)
  4. Event income (future)
Market

The industry Bobo is operating in would be the gaming industry, the market size of this industry in Malaysia is approximately USD876 million. Bobo has plans to capture approximately 25% of this industry. Bobo is currently only operating in Malaysia and has plans to expand across SEA, which has a market size totaling approximately USD3.04 billion.

Competition

Bobo is differentiated from its competitors with its diverse business focus (both F&B and pure gaming), and its solution is focused on both offline and online experiences.

Funding

BoboStation is planning to raise RM3 - 5 million. The fund utilisation plan is as per the pie chart below: -

  • Rental & Utilities (72%)
  • Staff Costs (19%)
  • Maintenance (7%)
  • Marketing (2%)

Vision

The vision of this business is to become the market leader in vending machines and arcade games in SEA. the company also has plans to venture into the smartphone gaming industry.

Once Bobo has completed its fundraising, it plans to deploy more entertainment vending machines in more locations, and open its first arcade center in the first year. It will also launch its mobile app in the first year.

In the second year after the fundraising, Bobo will continue deploying more entertainment vending machines and open 2 more arcade centers in Malaysia. In year 3, Bobo will start looking into overseas expansion.

Founders
  • Name - Lim Xiao Jiang
  • Nationality - Malaysian
  • Age - 28
  • Profession - Founder & Managing Director of BoboStation
  • Qualification - One Academy and IACT College

Past experiences: -

  1. Founded Acelife3 (health supplement collagen) in year 2015 – 2017
  2. Founded his first vending machine business with BeeBae in year 2017 – managed to achieve RM 1.2 million sales in first 6 months
  • Name - Kun You Hoong
  • Nationality - Malaysian
  • Age - 40
  • Profession - Advisor & Director of BoboStation
  • Qualification - One Academy and IACT College

Past experiences: -

  1. Started a toy supplier business since 2016
  2. Entered arcade and crane machines since 2018. Managed to discover over 100 types of games in crane machines
  3. Experienced in machinery technical aspect and procurement of machinery

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