L’actualité, a Canadian French-language news and general interest magazine published in Montreal, has released an interesting article today, detailing Cirque du Soleil’s “new bet” on its future. The article itself was published in French only; however, a cursory sweep through Google Translate has offered up a few interesting nuggets…
• Cirque2017 is shaping up to be an extreme sports show. “Cirque 2017, which will be presented under the big top of the Old Port of Montreal, ‘will use a lot of extreme sports’ including BMX, Jean-François Bouchard explains enthusiastically.”
• According to Daniel Lamarre, CEO, Cirque will experience a “huge growth” over the next five years, increasing the number of shows from 18 to “at least 25”.
• As we eluded to in Fascination a few months back, Cirque is considering cloning some of its shows for other markets. “O, Michael Jackson One, The Beatles Love, and KA could be produced in other markets.”
• Cirque du Soleil is looking to expand in China, New York, London, Dubai, Mexico, and Hawaii.
• Within five years, Cirque hopes to have at least two permanent shows in China, with the addition of touring shows. Many hopes are with TORUK, which will begin touring China in 2017. TORUK’s success will lay the groundwork for the first permanent show, scheduled in Hangzhou at the end of 2018. And who knows, perhaps a clone of ‘O’.
• Paramour will remain in the “Big Apple” as long as the tickets have a market. If ticket sales take a hit, the show could go on the road and tour as other Broadway productions do.
• Cirque is also scheduled to open a resident show in New Jersey by early 2018. This show will focus on the theme of fashion and will be installed in a new theater, built-in shopping and entertainment center currently under construction.
• Daniel Lamarre still optimistic he could port LOVE to London. Also considering PARAMOUR. Not to mention the dinner theater show he wants to install there in three years.
• With revenues of $25 million, 45 Degrees is still a small part of the Group du Soleil, but, president Yasmine Khali’s plan, is to make the move to $100 million within five years. Mitch Garber, President of the Board of Cirque du Soleil, confirms the Group’s ambitions. “45 Degrees is definitely one of the important growth paths of Cirque du Soleil.”
• The customer must have a budget of at least $350,000 to appeal to 45 Degrees. And it is they who bear the financial risk, not Cirque du Soleil. Of the 1,500 unsolicited requests it receives a year, it accepts only 10% of them.
The dinner show JOYA created “many, many requests” from other developers, and so it seems Dubai will host a version in 2018, then Hawaii. “Very preliminary” discussions are also underway for JOYA-like dinner shows for London, Brazil, and elsewhere.
• The team is also working to develop “parks” for Club Med (Fosun properties) and permanent shows with the European cruise line MSC.
You can read the English-translated (via Google Translate) version of the article below. Or, if you’re interested in the original French version, check out the SOURCE notation at the end.
When Jean-François Bouchard, largely responsible for the creation of Cirque du Soleil, finally arrives in the office of his boss, the head office of Montreal is the whirlwind. He laughs, cries, apologizes for being late. In a move rarely seen in the office, he at length hugged the president and CEO, Daniel Lamarre. With pats on the back and everything.
Chosen by Guy Laliberté himself to succeed him as creative guide of Cirque du Soleil, Jean-François Bouchard, seagulls patterned shirt and gold belt, clearly carbide with crazy ideas. At one year of the first show named yet Cirque 2017, which will be presented under the big top of the Old Port of Montreal, the great curly 55 years has given the green light to the main numbers acrobatics, music and the design stage. The show “will use a lot of extreme sports” including BMX, he explains enthusiastically.
The withdrawal of Guy Laliberté day business of Cirque du Soleil is the most visible aspect of the sale of the company – a transaction of $ 1.5 billion in the summer of 2015. The US group TPG Capital now has 60% of the shares, the Chinese group Fosun 20% and the Caisse de dépôt et placement du Québec 10%. The founder, still owns 10% of shares, just add a touch, but it is there “on time very, very partial,” said Mitch Garber, who chairs the board. “Before, everything was going through Guy, he said. Nothing important was happening without Guy. And suddenly, there is more of Guy … ”
Unlike Laliberté, investors, including large portfolios do not count other entertainment enterprises, do not mix creation. They have brought against growth ambitions and greater discipline.
“We now have an incredible range of development!” Said Daniel Lamarre, CEO since 2006. Cirque experience a “huge growth” over the next five years, he said. The number of performances from 18 to “at least 25”. Revenues and profits increase by 15% annually. The number of jobs also. “When I talk about growth, not just hope, stressed the leader of 62 years. These are real, concrete projects. I see them !”
No way however from scattering. The unrelated to the show activities, such as catering in Ibiza and the nightclubs in Las Vegas, were abandoned immediately after the transaction. The new projects are now assessed based on a clear direction: rationally target the most promising markets and identify the best ways to conquer them. “I do not know how the financial discipline investors could help us,” said Daniel Lamarre.
If the effect on the financial results do not yet being felt, it has already acted on morale.
The sale, two years after significant cuts – 400 positions eliminated, especially in Montreal – had made them nervous employees. Over the months, they found that the positions were saved, that the mission and creativity were not sacrificed. “There was a normal period of transition, but now seems frankly moral good,” according to Louis Patrick Leroux, professor at Concordia University and director of the circus in search of Montreal Group.
In March that spins too quickly for his taste, Jean-François Bouchard multiplies trips between Montreal and New York to refine Luzia (the Mexican-inspired spectacle the first of which took place in April in Old Port of Montreal) and Paramour (in May at Broadway). But the first item on the agenda of his meeting with Daniel Lamarre is Cirque 2017 .
The productions launched in the Old Port of Montreal can live long if they do fly. Varekai (2002), Kooza (2007) and Totem (2010), for example, still roam the world. Other less popular, were withdrawn after a few years of touring.
“Montreal is the most difficult market for us,” says Daniel Lamarre few weeks of the first of Luzia . “Quebecers are also critical of the Cirque du Soleil than to the Montreal Canadiens … We hope to have a better season than them!” Laughs CEO.
So far, the Cirque had a show in one city at a time. Now, it is often with two, three or even four simultaneous productions in an entertainment company maximizes its profits. “We were the only ones not to, and there it is viewed,” said Daniel Lamarre. And O , Michael Jackson One , The Beatles Love and Ka , every success in Las Vegas, could be produced in other markets.
Las Vegas has long been the engine of growth, but if he wants to grow 15% per year, Cirque du Soleil will drill in China, New York and London. In these priority markets add Dubai, Mexico, Hawaii … After a few months on the board, Christian Dubé, Vice-President of the Caisse de dépôt et placement du Québec, is confident: “The prospects that we have been presented at the beginning [of the transaction] are quite there, positive, encouraging and above all, achievable. ”
The Middle Kingdom, which already has 10,000 troops circus, is in the sights of the group for years. “Cirque du Soleil had not yet found the way to break through it, but now has a very combative strategy,” says Louis Patrick Leroux, circus Montreal Research Group.
The arrival of Fosun as shareholder has changed the situation, says Daniel Lamarre. Chinese conglomerate, with a market value equivalent to 16 billion Canadian dollars, entries everywhere he uses to Cirque du Soleil. When Daniel Lamarre visits China, people of Fosun translate her body language and the reality of business. Thus, the CEO realized recently how the political factor comes into play. Luckily, the Chinese government wants the new housing estates have a cultural component.
The Caisse de depot et placement account also enjoy the presence of its real estate arm Ivanhoe Cambridge in China to help Cirque. “We put our dollars, but it supports more than just a capital” insists Christian Dubé.
Within five years, the Cirque hopes to have at least two permanent shows on Chinese soil, in addition to many long tours. Many hopes are based on toruk , inspired by the film Avatar, who will begin his China tour in 2017: its success assoirait the groundwork for the first permanent show, scheduled in Hangzhou at the end of 2018. And who knows, in a project recovery of aquatic creation O .
In the shorter term, Cirque puts the package to conquer Broadway with Paramour , a mixture of acrobatics and music hall. Construction of a theater, systems integration, co-design with a local team … Paramour will remain on display in the “Big Apple” as long as the tickets have a market. If hit, teams could also walk the show around the world, as do other Broadway productions.
The New York market has not always been easy for the Cirque du Soleil. The failure in 2009 of Banana Shpeel , a vaudeville-style show, with jokes and humor, had great sound. “It was a little show,” insists Daniel Lamarre, who much prefer to talk about success touring and rock opera Zarkana , for which one million tickets were sold in two summers at Radio City Music Hall in 2011 and 2012. “I have a selective memory,” he acknowledged with a smile.
Furthermore Paramour , Cirque du Soleil will open a permanent show in New Jersey, the other side of New York at the turn of 2018. This production will focus on the theme of fashion and will be installed in a new theater, built-in center shopping and entertainment five billion currently under construction.
A little puzzle, by cons, draw the plans in London, another priority market. For years, Daniel Lamarre dream install it Love, the Beatles tribute. An obstacle gets in his way: the lack of a place to scratch. The West End theaters, the central sector, are historical, thus difficult or impossible to change. And available land are rare. Whatever, the CEO regularly travels the UK capital, control analyzes. In addition to Love, the Cirque hopes to export it Paramour . Not to mention the dinner theater that wants to install in three years.
To increase its chances to execute its ambitious business plan, Cirque du Soleil has reshuffled its management team in early 2016. Jonathan Tétrault, previously responsible for the Montreal office of McKinsey consultants box, replaced Charles Décarie as Chief operating Officer. Stéphane Lefebvre took over the management of finances, after leading those of CAE simulator manufacturer. These hirings and other changes in administrative teams will “install this level of rigor and business experience [desired by investors],” said Mitch Garber.
In addition, said Daniel Lamarre, these new recruits are “speaking Quebecers from here”, which has significantly calmed the “legitimate concerns” of employees. “I’m doing speechs, but there is nothing like the action. Here the message is clear that Quebecers remain with management and the head office remains in Montreal. ”
{ SOURCE: http://goo.gl/0JDIr5 | L’actualité }
