Preschool is booming in India, owing to the emerging franchise model to scale up operations among preschool chain owners.
Franchising has emerged as the most successful model to expand in pre- school education. Pre- school education comprises a major chunk of education business in India today.
A market research report released in December 2017 by London-based market research firm Technavio revealed that pre-school sector in India is likely to achieve a compound annual growth rate of approximately 32% in next three to four years.
Taking into consideration the huge parental demand for preschools even in tier II and tier III cities in India, the key players in the preschool sector are expanding wings across the length and breadth of the country. As a result, the pre-school market in India is witnessing an exponential growth.
A Boulevard to Success
Speaking on the current market scenario Vinit Srivastava, Founder, Little Einstein’s said,” The nature of the business is so local market driven which means that you are funding from the local partner. Franchising helps in to bring in continuity among the partners.”
Despite the challenges, Vinit continued,” The organized playschools operating on franchise models are all set to flourish in India. The current scenario suggests that preschool sector in India will witness tremendous growth in the next few years with an increase in demand for branded or organized play schools.”
Considering the potential of Indian preschool segment, Prahar Anjaria, Founder, Rangoli Preschool said,” Expansion to a wider level is made possible by franchising today. In preschool industry, the initial investment is low. The day to day operation becomes very easy under the guidance of a franchisor.”
Scaling the Possibilities
Being an unorganized Industry, Vinit said,” The preschool segment is still dominating the entire landscape and providing a world class education to the kids.”
From the current scenario perspective,” There stands a handful of opportunities for branded preschools to flourish. It is followed by the rise in disposable income, enabling one to create new preschools. In a way, the market itself is increasing along with an increase in the market share”, said Vinit.
With an alarming preschool segment, Prahar Anjaria said,” With a rise in income, people expect certain quality and regular up gradation in the system and it is today made possible through franchising. There is a huge potential of franchise preschools and their existence will be long lasting in the market.”
The Major Breakthrough
As far as Tier II & Tier III cities are concerned, Prahar said,” Many new industries are coming up where there is a huge demand but the supply is very less. The industry is supposed to grow very rapidly. Considerably, it is one of the most flexible businesses today in India with an ample amount of reputation and profit to make your business grow.”
“Maintaining a strong relation with the franchisees, the retention and success ratio will be highest in the industry”, said The Founder, Rangoli.
Tapping the Future Market
With an expansion in Tier Il and Tier IIl cities and increasing franchise numbers in untapped areas, Vinit was of the opinion that, “ The number of organized preschool are expected to significantly increase across the country in the coming years. With maximum demand for preschools, North region has been the largest regional preschool market over the last few years.”
Sharing his concern Vinit said,” The preschool business has to be aligned more towards what is happening on a global scale. One needs to be hands on with the challenges that come along in the franchising model and dig out solutions that will define the future of preschools in the near future.”
Owing to the humungous scope and opportunities in this industry, International preschool chains are also eyeing the market sensing a huge growth. Having said that, regulation of preschool sector in India is the need of the hour as it will help set standard parameters to assess the competence of preprimary education imparted in such schools.