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August 27, 2011

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Home » District » Minhang

Bang, bang, you're dead! Taking the cyber out of war

INVEST in something out of the ordinary and make it distinctive. That's the motto of a young entrepreneur named Cai Weiyuan, who is putting his business model to the test by taking "cyber" out of the popular video war game Counter Strike.

Cai opened Shanghai Stanley Live CS Club on Lianhua Road in the Minhang District last year. It's a place where young people can go to act out in simulated combat the first-person shooter video game that pits terrorists against counter-terrorists.

Cai opened a second branch of his business in the city of Suzhou, east of Shanghai in January, one in Hangzhou in April, and third one is planned in the Hongkou District in Shanghai.

The 28-year-old hails from Shanxi Province, where his father owns a logistics company. The bold but down-to-earth risk-taker learned from his father the importance of being your own boss.

"There is a tradition of doing business in my family, and I am no exception," he said. "Being your own boss means you have more free time."

Cai began in his father's footsteps, opening a small logistics company in Shanghai when he was only 19 years old. The business failed, which he chalks up to his lack of experience and failure to work as hard as he should have.

He then worked as an agent in the liquor industry in Liaoning Province, introduced to the business by his brother. But he quit after three years, amid disputes with his employer.

Cai said he first played the first-shooter video game Counter Strike about three years ago but didn't see it as a money-making idea at first.

"It just all struck me later, all of a sudden," he said.

He was checking through the business cards he had collected so far and happened across the business address of an equipment manufacturer in northeastern Liaoning Province. The wheels in his mind started turning.

"I knew that there was no indoor live CS club in Minhang, and I decided to give it a go," he said.

His father, 53, had misgivings about the venture. Cai spend days trying to convince him that taking risks is sometimes the key to business success.

"I told him that you shouldn't always do the same thing as everyone else, you shouldn't just follow the trends that others set," Cai said. "Business opportunity is sometimes hidden in something uncommon. Just because you are doing something you haven't touched before doesn't mean you can't make a success of it."

The Shanghai Stanley Live CS Club, where he works as general manager, employs more than 10 staff, all from the post-80s generation.

"It's important to position my club as an unconventional venue and expand the brand profile by opening branches," he said.

Cai chose as his location an unused part of an underground parking lot near his home in Minhang. He rented the basement site from the Greenland Group, which is doing commercial redevelopment in the area.

The next question was how to design the interior to replicate the scenes of the video warfare.

"I visited a number of clubs nationwide, but found no designs were what I wanted," he said.

Most of the clubs featured maze-like interiors due to restrained space. But Cai wanted more open space that not only provided areas to hide but also allowed maneuverability in attacks and retreats.

He spent a month working on a sketch for the club, consulting friends who are avid players of Counter Strike. Then he invested 400,000 yuan (US$61,500) - half from his own saving and half from his father - in outfitting the club.

The underground area, which started with 1,500 square meters, is comprised of different backdrops, such as trenches, sentry towers, bridges, forests, restaurants and even cafes to simulate the online scenery.

Half-eaten food remains on a table, and every piece of furniture is scuffed to make players feel like they are on or near the battlefield.

"It was shabby at first with no sofas and no carpet," Cai admitted.

He hired four professional drillmasters, all demobilized veterans, to provide guidance for players. One of them participated in the United Nations peacekeeping mission in Haiti.

Cai purchased laser guns, bombs and other military equipment. Of course, none of the munitions was live or could be used to inflict harm.

The action goes something like this. Players carry weapons and wear equipment with sensors that inform them what's going on, such as how many of their team members have been taken out by the enemy. Each player has eight light points on his gear. If one is hit, a noise sounds and one of the lights goes out. Bang, bang, you're dead! The fallen can then retreat to become spectators to the rest of the battle.

There are big screens outside the "combat zone" where all the action can be viewed.

The club opened in October after months of trial operation when only Cai's friends were invited to participate and give advice on improvements. Cai gave every suggestion serious consideration.

He added more streets and brought in two vans to make the area look more like a real battlefield. At first, he hoped to purchase real vans used in the army, but failed. He had to paint the ones he bought in army green.

He gradually expanded the combat area to 2,700 square meters as other parts of the parking lot were demolished in the redevelopment project.

The club also has a reception area, with table games and drinks for players to kill time while waiting their turn.

Adding up rent, utility, salaries and other fees, it costs Cai about 1 million yuan in the first two months to operate the club. At first, the business was slow to take off.

"I still remember that we earned less than 1,000 yuan in one week," he said.

He realized that the business needed marketing if it was to be a success and that meant spending more money.

Trying to keep costs down, Cai started small by distributing pamphlets at Metro stations. When that didn't seem to be having much impact, he started printing advertisements on napkins and paper cups, and he dressed his drillmasters up in military uniforms when they went out to distribute them.

Thanks to group-buying websites, which popped up during that time, Cai also cashed in that craze. He cooperated with one website in December, offering a 50 percent discount at the club.

About 1,284 people bought the package. The tactic seemed to work. Increasing numbers of people were coming to the club, some on a regular basis. Word of mouth got around.

It costs 35 yuan for a two-hour "combat" session. The club also offers a VIP membership at a cost of 3,000 yuan (no limitation of time). There are currently 1,000 VIP members.

An average 300 people visit the club on weekends and about 100 on workdays.

The business has yet to show return on investment, but it is generating enough revenue to cover operating costs.

"Cash flow is important," Cai said. "You have to wait until you get back all your investment."




 

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