New retail machines cash in on digital spending trends

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Mini karaoke boxes and prize claws are gaining popularity in China. With Internet technology, people are using mini karaoke boxes and prize claws not just for fun but also for socializing.

Karaoke regaining popularity in China

Karaoke maybe a thing of the past but now in China, mini karaoke boxes have begun to come back to shopping malls, restaurants, railway stations and airports. It is especially attractive to those picky young people. What is behind the phenomenon?

These booths will allow aspiring soloists to sing, without needing to fully pay for hours at a karaoke suite, allowing people to pay by the song. It appeals to people with limited time, a short attention span, and working on a budget, who spend some spare time when hanging around in shopping malls.

There is even a small digital trophy after a brief session in a mini karaoke box which users can download and share a recording of their performance with friends on social media.

Prize claws: A new twist on a classic game

If you find it a little bit awkward to sing in a mini karaoke box, maybe you can try to grab a toy with a prize claw machine. If you think the game sounds a bit out of date, you'll be surprised to find it is actually very new for socializing and very profitable.

When selecting the machine with the doll of their choice, users will find that the familiar arcade game has been through a digital upgrade. Mobile payments have cut management overhead for operating companies running the machines - plus it also makes consumers less aware of the amount they have been shelling out.

Even with the conveniences of digital payments, it may still prove difficult for these savvy operators to break even in the near future as they have invested vast amounts of cash in the thousands of machines which can be scattered throughout a single city.

What's behind this new street retail?

Why are businesses like mini karaoke boxes and prize claws getting so popular these days? Is it solely because of the fun? Let’s find out.

Most of these new retail machines are placed in high traffic shopping malls, cinemas and airports, where people tend to spend more time waiting.

But offering fun activities to kill time is not enough if companies want to really cash in. Sharing functions are also a vital add-on, so that the entertainment doesn’t stop when the music ends or when time is up. Users can boast of their achievements and interact with others on social media. Developing these new functions are an important edge in a sector with low barrier to entry and tough competition.