The Indian preschool sector is experiencing rapid growth. As per a report by CLSA Asia Pacific Markets, the preschool education segment in India was estimated to touch $ 3,426 million by the end of 2012. Another study by Ernst and Young estimated the market to cross $1 billion in 2012, with a growth rate of 35%[i]. As per the latest report on Education market by Mint in Jan 2015, the education market in India, which is presently worth around Rs 5.9 trillion ($92.98 billion), is poised for some major growth by 2020. The organized sector is expected to rise considering the rapid growth of international school franchise opportunity in Tier III and Tier IV cities.
In urban areas especially, a preschool is now considered a necessity by most parents. Education Franchise in India, popularly known as playschools, caters to children aged between two to four, and seems to be a lucrative investment for franchisees and investors. With the entry of a number of reputed chains, national as well as international, this sector is witnessing immense growth and development. With many of them opting for the franchise route to scale up their presence, the concept of franchising among interested and start-up entrepreneurs, has caught on fast in the last few years.
A number of factors have accelerated the growth of the preschool and play school franchise. Growing number of nuclear families and working parents is one of the leading reasons for the growth of preschool sector in India. Over time, the perception of preschool education has also changed from just being nutrition centers to an institute where the child is prepared for getting into formal education using innovative learning approaches adopted by educators which makes learning fun for children. The low investment required in running and maintaining preschools make it a lucrative business opportunity.
The kids school franchise model offers several advantages for a potential franchisee. It reduces the risk and gestation period associated with a business and provides an easy transfer of technical knowledge and the well structured procedures and policies laid out by the franchisor. The advantage of partnering with a known brand helps in outreach and attracting more parents towards the school. A franchisee doesn’t have to worry about research and development of curriculum as a set preschool curriculum developed by experts is provided by franchisors.
In addition, franchisees looking to collaborate with a recognized preschool brand can explore several location and operational options as some leading preschool chains are looking to expand their outreach to Tier I and Tier II Indian cities or even international expansion. From the franchisor’s perspective, the preschool business is not only lucrative; but also helps them quickly build up their presence in targeted geographical locations. The franchisor not only shares the brand image, but also their knowledge, experience, and technical expertise.
Among the preschool chains operating in India, the more prominent ones are Sesame Schoolhouse, EuroKids, Shemrock Schools, Kangaroo Kids, Sanfort, Kidzee, Serra International, Podar Jumbo Kids, Hello Kids, and Sunshine among others. Among these, Sesame Street is leading the way by revolutionizing the way children learn. Sesame Street Preschool is a venture of Sesame Schoolhouse, the latest educational initiative from Sesame Workshop, one of the largest non-profit informal educational organizations in the world who also produce the world acclaimed children’s educational television show, Sesame Street. Sesame Schoolhouse is setting a new standard for early childhood education through their unique preschool and afterschool programme: Sesame Street Preschool for pre-primary learners aged 2 to 5, and afterschool to reinforce science and math concepts for children ages 6 to 8. It’s a learning experience brought to life by the fun and furry characters of Galli Galli Sim Sim, India’s first educational TV programme for children. Their unique brand of age-appropriate education puts kids at the center of everything, from playful project-based activities to an environment made for rampant imagination.
In conclusion, one can sum up by saying that that as the preschool industry is a sector with a huge potential that needs to be tapped, a franchisee can look at satisfactory and fulfilling partnerships with established, credible preschool brands as a viable option to fulfil their entrepreneurial aspirations.
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