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Students are becoming career conscious, and coaching institutes are cashing in on this opportunity by marking their presence online and offline
Every year, the number of aspirants is rising and the lesser number of seats for the competitive exams is leading coaching institutes to come into picture. Education plays a pivotal role in the overall development of an individual, and the coaching industry has become a significant part and generates major chunk of revenue. The coaching industry is expected to grow exponentially in the future due to increase in disposable income and awareness of education. Besides, the growing demand for engineering and medical as a career option has increased the number of students opting for entrance test. Another factor is increased proportion of working parents, which have motivated the students to take up supplementary classes.
Aakash Institute, known for providing coaching for medical entrance exams, is focusing on increasing its presence. “We are looking forward to add seven to eight centers each year. Presently, we have a network of more than 100 centers. Out of these, 36 are franchisee run, spread across 21 states,” said Aakash Chaudhry, Director, Aakash Educational Services.
Earlier, it was only 10 per cent people taking online coaching and 90 per cent of people still believe in brick-and-mortar institutes. But now the situation has changed, about 90 per cent of people take online route for modules, video conferences, PPTs, etc and get certified by university. Now, gradually people are moving towards online, and the market is also increasing in size.
As a result, tech-savvy educators know how to change with the new trends in the education system, and also to learn from technology. Recently, International Finance Corporation (IFC) has invested $15 million in edtech company Byju’s for international expansion. On similar lines, Ruchira Shukla, Regional Lead - Venture Capital Investments, IFC, said: “Education is an important sector for IFC given its critical role in driving economic and social development in the country. IFC’s venture capital strategy in the Edutech space is focused on technology-enabled learning platforms for academic improvement, skill development platforms as well as supplemental and low-cost education solutions.”
Taking Franchise Route
Coaching centers, currently shifted towards organized section and making them available across the nation through franchise route. “The purpose of starting the franchise model is to reach out to the students in other cities and provide them quality education. We also believe that branding and franchising are two strategic tools for growth. Through franchising, we want to achieve a fusion where the local market knowledge of a franchisee and the educational expertise of Vidyalankar will help students to cherish their dream of admission to top class institutes like IITs. We believe that franchising and branding are the tools for future growth of our business. A local marketing knowledge of the franchise and an expertise in business domain of franchisor is an unbeatable combination”, pointed Suyog Penkar, CFO, Vidyalankar.
“Career Launcher believes in building a relationship wherein risks and rewards are shared continuously by the two entities. Despite being the national leader in our field, we have a low-cost franchise model. The sole reason is we are looking for teachers as our franchisees and they cannot afford a costly model. So, we have always kept our franchise fees low,” said Gautam Puri, Vice-Chairman, Career Launcher Educate.