Off late, there has been a supreme build up about the early childhood education. The sector which was non existent a decade back has become a quintessential part of an essential part of a young child’s life.
Let me try dividing this phase of a child life into different segments;
1) Pre School – Age 2 Yrs + – 3.5 Yrs (Pre-Pre Primary)
2) Post School – 3 yrs – 5 Yrs (Nursery, Pre Primary 1, Pre Primary 2)
As soon as the student reaches 5 years, he shall be taking admission in Class 1.
There are now close to 15-20 players (nation wide) players in this business. To name a few, Zee Kids, Bachpan, Globe Trotters, Roots to Wings, Shamrock etc. Other than this there are numerous home grown brands. All of this is a very latest phenomenon, now parents are giving a very serious thought about sending their child to one of these establishments. Following are the reasons why has this sector boomed;
- No or almost ‘Zero’ Bureaucracy – The education departments or affiliation bodies have hardly anything to do with them.They work more or less independently with no set standards for the quality parameters.
- Low Investment – A franchise is available for anything between 5 – 10 Lacs and being a non-regulated sector there are no set guidelines in terms of land and class rooms requirement. Thus with a small investment this can be started.
- Low expertise – Manpower requirement – All one requires is anybody who can speak workable English and is good with handling young kids. There are no set benchmarks such as TET, BEd etc. This is ideal for a lot of housewives and young females looking to do something in the first half of their day.
- Revenue through different sources – Parents spend beyond there means when it comes to their children esp when they are young. This emotion is exploited to the maximum making sure the parents pay by purchasing Photo Albums, School Uniform, Stationery etc for their kids.
- A cradle for Senior Schools – Though no all of them but some of them get tied up or affiliate themselves with other big schools making the students graduate to these schools. This can also act as a source of revenue. If one strikes big, one can venture out and start a full blown school from thereon.
There are many other minor reasons like an ideal opportunity for a house wive looking to start her career, The establishment can work as an activity center during summer vacations and holiday time, need not be under a no-profit society etc.
- Low Shelf-life of the customer – The customer i.e. the student here disappears after 1-2 years time to bigger establishments. This can be very tiring and expensive to keep generating leads for new admissions.
- Low barrier for competition – Being a small set up, there are many who look to start the same model if one establishment succeeds. this can lead to undercutting.
- Low Scalability – Most of these establishments work out of rented buildings, flats and apartments making it difficult for the owner to scale up operations beyond a certain strength.
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